Tuesday, September 29, 2015

Carriage Disputes and the FCC’s Role

Is it fair to expect that FCC involvement or threat of involvement in carriage disputes would lessen the frequency of blackouts in local markets?  Would it be to the advantage of the consumer if they do?

Over the past several years, must-carry fees compensating broadcasters for their station feeds have skyrocketed.  With declining pay-TV subscriptions, MVPD operators have pushed back on both the requested rate hikes and the continued bundling of sub-channels in with top-tier channels.  Broadcasters have counter-punched by withholding channels and blocking online access to shows during disputes.  Nearly 150 broadcaster blackouts so far in 2015 have caused consumer harm.  By “using” the consumer in negotiations, is that fair?  But, by regulators preventing or limiting the use of a private party’s leverage in negotiating an agreement, is that fair?  

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