ENGLISH

US Networks and pay-TV operators are still in conflict over retransmission agreements

August 10, 2010

Maribel Ramos-Weiner

Cable operators believe consumers will end up fronting the costs as a result of these retransmission agreements

The National Association of Broadcasters (NAB) is trying to keep the Federal Communications Commission (FCC) Review Board off the controversial issue of retransmission agreements. An analysis by Broadcasting & Cable indicates there are millions of new dollars at stake, and cable operators believe consumers will end up fronting the costs as a result of these retransmission agreements.Opponents to the fee increases on retransmission consents are using the review of regulations for media property as a defensive tactic.The National Cable & Telecommunications Association (NCTA), which does not normally intervene on issues of media property, is now saying there is a relationship between media property and retransmission policies. NCTA requested the FCC eliminate local marketing and shared services agreements, which will allow networks to negotiate retransmission agreements for more than one station in their markets.FCC’s authority over retransmission consent negotiations is limited in ensuring that they are conducted in good faith, but cable operators are trying to take advantage of the commission’s power over media property rules in order to defend themselves from retransmission agreements.“The FCC should also guarantee through its property restrictions that the networks’ retransmission agreements don’t collude to increase their power in the market,” announced NCTA on a statement.There already is a coalition between Time Warner and the ACA to lobby the FCC for a change in retransmission agreements.