[opendtv] FCC on retrans consent

  • From: "Manfredi, Albert E" <albert.e.manfredi@xxxxxxxxxx>
  • To: "opendtv@xxxxxxxxxxxxx" <opendtv@xxxxxxxxxxxxx>
  • Date: Thu, 3 Mar 2011 19:40:15 -0600

http://www.fcc.gov/Daily_Releases/Daily_Business/2011/db0303/FCC-11-31A1.pdf

They present examples of how these negotiations have been disrupting consumers' 
access to TV programming. They say, in paragraph 17,

"Subscribers are the innocent bystanders adversely affected when broadcasters 
and MVPDs fail to reach an agreement to extend or renew their retransmission 
consent contracts."

No they aren't! Subscribers have been buckling under for decades, to MVPD 
increasing subscription fees. A *lot* longer than have the broadcasters been 
demanding a kickback from those subscription fees. The demand inelasticity of 
subscribers is the root of this problem.

Some discussion of whether broadcasters can withhold their signal from an MVPD 
during a sweeps period. The MVPD, cable specifically, is not allowed to block a 
broadcaster's signal during these periods, so why should the opposite be 
allowed, was an MVPD argument.

Because it the mostly the broadcaster that is hurt by having its signal blocked 
during the sweeps, right? Makes it look like no one watches their stuff. The 
MVPD would benefit, since that drives down the broadcaster's leverage in 
negotiations.

On exclusive use by the MVPD of the local broadcaster's signal:

"We seek comment on whether eliminating the Commission's network 
non-duplication and syndicated exclusivity rules, without abrogating any 
private contractual provisions, would have a beneficial impact on 
retransmission consent negotiations. Would eliminating these rules help to 
minimize regulatory intrusion in the market, thus better enabling free market 
negotiations to set the terms for retransmission consent?"

Heh. I suppose this would really test out the notion that the audience craves 
that local content, eh? But I think this was the most revolutionary idea in the 
document. Wow. That would change things.

Mostly, the FCC wants to strengthen the "good faith negotiations standards," I 
guess to give the FCC more authority to force these along. The FCC is worried 
about protecting the "innocent consumer." Then distribute OTA antennas.

Bert

 
 
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  • » [opendtv] FCC on retrans consent - Manfredi, Albert E