[opendtv] Re: Retransmission Reform Reply Comments Due Today

  • From: "Manfredi, Albert E" <albert.e.manfredi@xxxxxxxxxx>
  • To: "opendtv@xxxxxxxxxxxxx" <opendtv@xxxxxxxxxxxxx>
  • Date: Tue, 28 Jun 2011 16:25:25 -0500

Craig Birkmaier wrote:

> Sometimes Bert makes connections that no one else can see...
>
> What does the ability to deliver out of market duplicated content
> during a carriage dispute have to do with station ownership caps?

Thanks, Craig, I'll take that as a compliment! No one else objected, though, so 
I figure they got it.

If the (presumably nationwide) MVPD is allowed to make use of any source of, 
say, ABC network content, instead of being confined to using a local ABC 
station, then why shouldn't ABC OTA stations be allowed to do the same thing? 
Why can't one company own all local ABC stations and use the same bitstream 
anywhere in the country? The mantra about "different points of view" completely 
falls apart here, if the MVPDs don't need to worry about it, eh? The local caps 
already take care of "multiple points of view."

> The ability to deliver the content that a local station is
> "holding hostage," essentially neuters any advantage a local
> station may have in a retrans consent battle. If anything,
> subscribers may learn that they really don't care at all about
> localism - all they really want is the national network content
> or access to a syndicated program.

OTA users are no different. That's my point. Efficient operations result from 
economies of scale. Just like HBO can use the same bitstream all over the 
country, there's no reason why you can't do the same thing with network 
content. If it's okay for Scripps to control HGTV and the Food Network over any 
MVPD it chooses, to block it if it so desires, then it should be okay for one 
entity to have that same control of content from a network.

> IF a network owned all it's stations they would have NO INCENTIVE
> to grant this permission during a retrans battle.

Not true. No network would want to keep its content away from everyone. People 
would soon turn elsewhere. Apply the same rules to cable channels, then, and 
break them up.

> I can assure Bert that the broadcasters will do everything in
> their power to block any attempt by the FCC to allow the
> importation of duplicate content during retrans disputes.

*IF* the national caps were lifted, I'll bet you are wrong on this. E.g., if 
all NBC stations could be O&Os, then there would be no issue of "importation." 
Ditto if a non-O&O station group were allowed to affiliate itself with a 
network, all over the country.

> It's not that easy. In most cases their franchise agreements
> require that they carry all local broadcasters in their most basic
> tier. And the FCC may require this as well.

I don't think there are any requirements that the MVPD must provide a retrans 
consent channel to every subscriber. If you look through this:

http://www.fcc.gov/guides/cable-carriage-broadcast-stations

all I see about "guaranteed carriage" is this: "Must-carry stations are 
generally guaranteed carriage on the cable system on a preferred channel 
number." It goes on to say that the channel number may be negotiated anyway. 
And no mention of guarantees of any kind for retrans consent. I think that is 
up to negotiation. MVPDs have the cards here.

Bert

 
 
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