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Cable firms ask Congress to fix contentious disputes with broadcasters
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03/09/10 05:12 PM ET
About a dozen pay-TV providers sent a letter to the leaders of the House and Senate Commerce Committees today asking for assistance in addressing "the harm that is being caused to consumers" as a result of the contentious negotiations between broadcasters and cable distributors.
The letter comes just two days after ABC pulled its programming from Cablevision's line-up, sending about three million viewers in New York and Connecticut searching for rabbit-ear antennas to watch the Oscars.
"That dispute is just the latest example of how the retransmission consent regime is broken and in need of repair," said the letter signed by companies including DirecTV, Dish Network, Cablevision, Time Warner Cable, Charter Communications and the American Cable Association.
Retransmission consent--or the system by which broadcast networks charge pay-TV providers to carry their programming--has come under scrutiny lately due to several high-profile disputes over those fees. Last week, ABC demanded more money in return for letting Cablevision distribute its channels to customers. When an agreement was not reached, ABC temporarily pulled the plug.
Lawmakers in both the House and Senate weighed in to urge the stations to find an agreement. The dispute was resolved, but other providers are taking note. Time Warner Cable warned its subscribers in the New York area that it deals with such fights "every day."
Time Warner had a similar problem with FOX last fall when the network demanded a rate increase for programming during the college football playoffs.
"Not surprisingly, the broadcasters would prefer that Congress and the Federal Communications Commission stay on the sidelines and leave consumers helpless in the face of such brinkmanship tactics," the letter said. "But that argument...ignores the unique government benefits and privileges conferred on broadcasters that preclude the normal give and take of private contractual negotiations."
The companies who sent the letter say "the balance of power...has shifted" since the fee system was put in place in 1992, and broadcasting networks are abusing its leverage in the multi-channel market.
Interestingly, not all cable companies and other pay-TV providers signed on to the letter. The National Cable and Telecommunications Association, Comcast, Cox, Verizon FiOS and AT&T U-Verse did not sign the letter.
The letter comes just two days after ABC pulled its programming from Cablevision's line-up, sending about three million viewers in New York and Connecticut searching for rabbit-ear antennas to watch the Oscars.
"That dispute is just the latest example of how the retransmission consent regime is broken and in need of repair," said the letter signed by companies including DirecTV, Dish Network, Cablevision, Time Warner Cable, Charter Communications and the American Cable Association.
Retransmission consent--or the system by which broadcast networks charge pay-TV providers to carry their programming--has come under scrutiny lately due to several high-profile disputes over those fees. Last week, ABC demanded more money in return for letting Cablevision distribute its channels to customers. When an agreement was not reached, ABC temporarily pulled the plug.
Lawmakers in both the House and Senate weighed in to urge the stations to find an agreement. The dispute was resolved, but other providers are taking note. Time Warner Cable warned its subscribers in the New York area that it deals with such fights "every day."
Time Warner had a similar problem with FOX last fall when the network demanded a rate increase for programming during the college football playoffs.
"Not surprisingly, the broadcasters would prefer that Congress and the Federal Communications Commission stay on the sidelines and leave consumers helpless in the face of such brinkmanship tactics," the letter said. "But that argument...ignores the unique government benefits and privileges conferred on broadcasters that preclude the normal give and take of private contractual negotiations."
The companies who sent the letter say "the balance of power...has shifted" since the fee system was put in place in 1992, and broadcasting networks are abusing its leverage in the multi-channel market.
Interestingly, not all cable companies and other pay-TV providers signed on to the letter. The National Cable and Telecommunications Association, Comcast, Cox, Verizon FiOS and AT&T U-Verse did not sign the letter.
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