FCC looks at retransmission reform

The US media regulator has promised to investigate the ongoing retransmission row between cablecos and networks.

The Federal Communications Commission (FCC) said it was time to take a “fresh look” at the systems governing broadcast signal retransmissions, known as ‘consent negotiations,’ and will try to level the playing field for both broadcasters and cablecos.

Cable providers claim the existing system is outdated and has caused clashes, such as the one in which News Corp pulled its channels from the Cablevision platform last year.

Broadcasters, on the other hand, say retransmission negotiations are best left to the parties themselves and government interference was unnecessary.

The FCC will now look at providing parties with more guidance on “good-faith negotiation requirements” and also “improve notice to consumers of possible service disruptions.”

It would also look to remove “network non-duplication and syndicated exclusivity rules” that give certain companies the means to enforce exclusive rights to network or syndicated programming.

Cableco Time Warner, a long-time advocate of retransmission reform that called for an investigation 12 months ago, welcomed the FCC’s plans, despite there being no specific FCC commitment to engage in negotiations.

“By launching this proceeding, the FCC has recognised that it is time to change outdated government rules that favour broadcasters over consumers,” Time Warner said in a statement.

The firm “looked forward to working with the Commission to achieve meaningful reforms that level the playing field and protect viewers.”

Lobbying body the National Association of Broadcasters (NAB) also welcomed the news, claiming the FCC had “correctly concluded that the marketplace is best equipped to negotiate private business contracts.” It will “actively engage” with the investigation.

“In more than 99 out of 100 retransmission consent negotiations, agreements are concluded successfully and invisibly,” added Gordon Smith, NAB’s president and CEO.

“Broadcasters will continue working earnestly to ensure that consumers receive no TV service disruptions, mindful that even the threat of injecting government into a market-based process only incentivises pay-TV providers to game the process.”