FCC moves to update rules for TV disputes

The Federal Communications Commission (FCC) on Thursday launched a proceeding to re-examine the rules that govern fee negotiations between broadcasters and pay-TV providers.

The effort follows some high-profile TV blackouts that left consumers without certain channels, resulting from breakdowns in talks between broadcasters and the cable and satellite companies that air network programming.

Under the current regulations, the FCC has little power to act beyond ensuring the parties are negotiating in good faith. The update won't drastically change that.

The rulemaking aims to provide more guidance on what constitutes "good-faith negotiations" and improve consumer alerts about possible blackouts.

Critics say broadcasters have the upper hand in the negotiations because they can pull their programming. They commended the commission for its decision not to entirely overhaul the current dynamic. 

"NAB is pleased the FCC correctly concluded that the marketplace is best equipped to negotiate private business contracts, and that it lacks authority to impose the heavy-handed government tools that pay-TV providers desire," said NAB President Gordon Smith. 

Consumer advocates wanted a more aggressive update to the rules.

“We hope that at some point the Commission will come to realize it has the statutory authority to relieve the consumer distress at being caught in the middle of the disputes," said Harold Feld, legal director at Public Knowledge. "We will make that point again to the Commission, and hope it will take a more active role than it has in the past in bringing some order to the retransmission chaos.”

Pay-TV providers issued generally positive statements even though they would have preferred a more aggressive action.

"ACA commends the FCC for agreeing that the time has come to give careful consideration to new TV station carriage rules to ensure they reflect the market as it exists today and that consumers get to realize the benefits of real choice and robust competition," said Matthew Polka, president of the American Cable Association.