If retrans fees go up as much as Kagan estimates, there could be dire
consequences according to Mediacom...
Regards
Craig
http://www.multichannel.com/news/policy/exclusive-mediacom-asks-fcc-limit-retrans-blackouts/391965
Exclusive: Mediacom Asks FCC to Limit Retrans Blackouts
Mediacom is filing a petition with the FCC Tuesday (July 7) asking it to
prevent blackouts during retransmission-consent disputes for any station that
does not reach 90% of its market over-the-air or via the Web, which Mediacom
suggests is most stations in its market and in the country.
What Mediacom wants most is some action out of the FCC on what it calls the
"growing crisis" in retransmission consent and in response to various petitions
and inquiries on the subject dating back years. Without some action to rein in
retrans prices and blackouts, Mediacom says, all but the largest cable
operators will have to:
• "Cease carrying broadcast stations that elect retransmission consent;
• "Get out of the video business altogether, which will necessarily require
broadband customers to bear a larger share
of network costs; and
• "Raise the price of retail payTV service to a level that is unaffordable for
tens of millions of consumers."
In a letter to FCC chairman Tom Wheeler, Mediacom chairman and CEO Rocco
Commisso pulled no punches, saying the FCC has engaged in a pattern of "malign
neglect" when it comes to retrans disputes, which adversely affect consumers.
Commisso pointed out that the FCC found authority to regulate broadband --
under Title II, which Commisso and Mediacom strongly oppose -- yet it can't
find the authority to address retrans.
"Last year, you voiced concern because retransmission-consent fees had grown
8,600 percent between 2005 and 2012," he wrote in the letter. "However, the
Commission has done nothing to slow the drain on consumer pocketbooks."
The FCC, Commisso added, “has ignored Congress’ unambiguously expressed intent
to ensure that retransmission consent does not lead to blackouts or
significantly increased costs to consumers."
“The reality is that millions of Americans cannot receive a quality off-air
signal,” Commisso said. "Our new petition does nothing more than ask the FCC to
ensure that broadcasters keep their part of the bargain and further the
congressional goal of promoting universal availability of free broadcast
television.
"Mediacom proposes that the commission amend its rules to condition a broadcast
television station’s license renewal on the station’s certification that it
will not terminate an MVPD’s carriage of the station’s signal upon the
expiration of a retransmission-consent agreement if the station is not
accessible via over-the-air reception or Internet streaming to at least 90
percent of the homes in its local market served by the MVPD," the petition
reads, according to a copy obtained by Multichannel News.
"We serve primarily small towns and cities outside of the primary cities within
most DMAs," a Mediacom spokesperson said. "Off-air reception is actually a
fairly big problem for the areas we serve. It is not something the commission
has focused on in recent years because 85% to 90% of Americans get their
broadcast signal through a cable, phone or satellite provider. With the
increase in blackouts, consumers may need to turn back to over-the-air
reception as an option."
Commisso signaled the FCC needs to take a more hands-on approach.
"A refusal to become involved in specific disputes combined with an
unwillingness to adopt corrective regulations add up to a do-nothing policy,"
he said in his letter to Wheeler. "I recently asked to meet with you during a
blackout imposed by a broadcaster, only to have your staff tell me that your
policy is to refrain from meeting with the parties to an ongoing retrans
dispute. To my mind that is a singularly misguided policy because you are
refusing to get involved at the very time when consumers most need your help."
Commisso said if the FCC does not act to rein in price increases, it could move
companies like his away from offering traditional video product.
"Cable One in their proxy statement -- they just went public -- said they want
to deemphasize video product. We may do the same thing, and other companies
like us may do the same thing, which would mean less competition," Commisso
said.
Commisso has been sounding the alarm about retrans for over a decade. He
pointed out to Wheeler that there were no fewer than four open rulemakings
relative to the TV marketplace that have not been acted on.
And while Commisso suggested that the record indicates the latest Mediacom
petition would be a futile effort, the company was going to try again in the
interests of getting the FCC to do something.
Commisso said no other American industry, regulated or unregulated, has prices
that double every two or three years And while he asked Wheeler to act on the
various petitions, he also said the FCC did not have to wait to take immediate
action. He said his lawyers advised him the FCC could do all the following
immediately:
1. "Eliminate network exclusivity;
2. "Require a cost-based justification for discriminatory retrans prices and
terms, and mandate rate transparency so that distributors and consumers alike
can make more informed decisions;
3. "Acknowledge that the voluminous records in pending retrans-related
proceedings demonstrate that changes are needed and that the commission has the
requisite authority;
4. "Start the required good-faith rule review without further delay and commit
to propose within 120 days specific rule changes that will make a meaningful
difference; and
5. "Use your “bully pulpit” to urge both broadcasters and MVPDs to accept a
moratorium on broadcast blackouts and a 10% ceiling on price increases for
renewals, pending the outcome of the good faith negotiation rulemaking
proceeding."
