Retrans Surfaces as Big Concern in FCC Effort

[Gregg Lengling]

A big concern among those commenting on the Federal Communications Commission's look into video competition issues is retransmission consent for local stations.

EchoStar told the FCC in comments filed this week that the commission's interpretation of the statutory good faith requirement for retransmission consent needs clarification "in light of a pattern of anti-competitive practices by network-owned and affiliated stations."

The satellite TV company added, "Because local network stations are critical to MVPD (multichannel video programming distributor) offerings, highly valued by consumers and without close substitutes, such stations wield considerable power in retransmission consent negotiations. Intolerably, network stations have sought to use this power to insist on conditions in retransmission consent agreements that are anti-competitive and that frustrate important Congressional goals."

EchoStar said it has received demands by local network stations that retransmission consent for carriage of its signal be conditioned upon carriage of affiliated cable/satellite TV networks that otherwise would not be carried by a pay-TV provider, or carried in a lower-penetrated programming package. Also, the company said it has encountered demands for carriage of low power TV stations with duplicative programming already seen in its programming lineup.

In its comments, the American Cable Association, representing small, rural cable interests, took to task what it said were the competitive harms of current retransmission consent practices. (For earlier story, see: http://www.skyreport.com/view.cfm?ReleaseID=1602.)

Also, on Wednesday, ACA asked the FCC, through a "petition for rulemaking," to adjust broadcast exclusivity and retransmission consent regulations to reflect marketplace changes for broadcasters, consumers and cable companies. "Broadcasters are using regulations and exclusive contracts solely to extract higher prices. That hurts consumers, and the FCC should act," said ACA President and CEO Matt Polka.

The comments on the issues - which took a look at retransmission consent, network program non-duplication, syndicated program exclusivity and sports blackout rules - are part of the FCC's work concerning the Satellite Home Viewer Extension and Reauthorization Act.