Nearly 30-years ago,
Congress passed the 1992 Cable Television Protection and Competition Act (“1992
Cable Act”). The amendment to the 1934
Communications Act required Multichannel Video Programming Distributors (MVPDs)
to obtain permission from broadcasters before carrying their programming and
compensate the broadcaster in cash or other forms of compensation for
retransmission of the television signals. (Note: There are no fees for these signals
if received over-the-air using an antenna.)
If the MVPD and broadcaster
cannot agree on renewal terms, a blackout occurs. A blackout is a result of an impasse in
negotiations between the two parties at the end of a contract term. Through the first 8-months of 2019, there have
been more than 200 blackouts. The most
ever. The market has changed as
consumers watch video content in many different ways, way more than in 1992
when the single option for consumers was watching linear programming on a
television set. Regulation needs to
change too.
In late July, Representatives
Steve Scalise (R-La.) and Anna Eshoo (D-Calif.) introduced a bipartisan bill
called the Modern Television Act of 2019. It has support from MVPDs. It has opposition from broadcasters who fear
that recent sharp price increases may be curtailed. Key provisions of the bill include
·
Retain the ability of a local television
broadcast station to require carriage on cable and satellite providers in their
local market.
·
Extend the 'Good Faith' negotiation
requirements. See: https://www.law.cornell.edu/cfr/text/47/76.65
·
Require MVPDs carry a broadcast signal while
the parties continue negotiations for up to 60 days. Parties would be
retroactively paid for their aired content.
·
Repeal retransmission consent and compulsory
copyright licenses.
·
Establish a mechanism by which the FCC may require
parties to seek “baseball-style” binding arbitration, following an extended
impasse or a finding of bad faith.
Let’s see if politicians can get the bill passed by year-end. Here’s hoping!
