Press Release
Cable Companies Request Changes in FCC Retransmission Content Rules
May 18, 2010
Public Relations contacts: Russell Thomas (202) 857-4517 & Bruce Buchanan (336) 728-7027
WASHINGTON, D.C.—Today, five mid-sized cable companies filed Comments with the Federal Communications Commission in the Federal Communications Rulemaking on Retransmission Consent. The Companies’ Comments asked for an equal playing field in providing local television programming to their customers.
The Companies contend that the FCC’s current Network Nonduplication and Syndicated Exclusivity rules give local network affiliates monopoly control over network television content (programming from ABC, CBS, Fox, NBC, etc.). Local television stations can charge cable operators a per-customer fee to carry this programming and, under current rules, cable companies cannot seek alternative sources for this programming. Viewers are the ultimate loser in the form of higher cable bills.
Five cable companies—Massillon Cable TV, WaveDivision Holdings, NPG Cable Inc., the Comporium Group and Harron Communications, LLP—asked the FCC to reform the existing retransmission content system. These companies are represented by a Womble Carlyle legal team led by Mark Palchick.
The cable companies request that the FCC:
- Eliminate the Network Nonduplication and Syndicated Exclusivity Rules. This would end the local affiliates’ monopoly and give cable companies the ability to negotiate for network programming in a free and open market.
- Enforce the Communications Act's requirement that licensees control the operation of their stations. Networks are restricting local affiliates’ ability to negotiate directly with cable companies. Instead, these negotiations must take place through a network-appointed middle man. The cable companies believe that direct negotiation between two local businesses is the best way to serve the local market.
- Allow cable operators to place “for-pay retransmission consent signals” on separate non-mandatory carriage tiers. This would give cable customers the option of opting out of paying for over-the-air channels. Also, cable companies would be able to disclose such fees on customers’ cable bills.
In addition, the companies believe that the FCC’s current system of all-or-nothing arbitration to settle retransmission consent disputes is onerous for small companies and should be replaced with a better, fairer means of resolving differences.
“The bottom line is that current FCC rules and policies stymie the free market negotiations for carriage of local broadcast signal,” said Robert Gessner, President of Massillon Cable TV, Inc. “All we are requesting is the opportunity to compete in a fair, free marketplace.”
The companies’ comments applaud and supplement the persuasive petition made by Time Warner Cable and thirteen others.