Senate to examine broadcast-cable programming contracts

Disputes between broadcasters and cable operators over program contracts will get attention in the Senate this year. 

The Senate Commerce Committee plans to take a look at the issue as it evaluates the proposed Comcast/NBC merger, said two sources familiar with plans. There may also be separate hearings focused on video competition.

In late December, Time Warner Cable and Fox were butting heads over sports coverage and Sinclair Broadcasting was having similar fights with Mediacom.

Sen. John Kerry (D-Mass.) immediately pushed for fast resolution so consumers would not be deprived of popular programming, like the Sugar Bowl on New Years Day.

Others, like Rep. Bruce Braley (D-Iowa), asked FCC Chair Julius Genachowski, to step in so his constituents could watch the Orange Bowl between Iowa and Georgia Tech on Mediacom stations.

The companies ultimately cut last-minute deals, but cable operators want action from Congress.

Mediacom CEO Rocco Commisso wrote a letter to Kerry, asserting the program contract system is "broken."

In a meeting with Genachoswki last week, Comcast CEO Brian Roberts indicated the growing problem over the programming contracts and said the FCC should "examine whether different approaches are needed," according to an ex-parte filed with the FCC.

By law, TV stations can negotiate with cable operators to carry its broadcast programming. Broadcasters can choose not to give programming to cable operators. Likewise, cable operators can choose not to carry the broadcast content.

Like all negotiations, disputes over the price of the programming and the amount cable operators are willing to pay for it often hold things up.

Genachowski said broadcasters and cable companies share the responsibility of getting programming to consumers.