ACA to FCC: Bundling Is Biggest Diversity Damper

The American Cable Association, joined by some independent programmers, told the Federal Communications Commission in reply comments that forced bundling of channels is the biggest obstacle to a thriving and diverse program marketplace. They pointed out that if a pay-TV wants to carry a desirable channel from the nine largest media companies, they would have to carry a minimum of 65 channels to get them. The cable operators argue that it is clear from the record that addressing that problem is a prerequisite to the competition that the FCC is trying to promote. That includes package deals in retransmission agreements, ACA says. "At a minimum, the FCC should eliminate bundling from the list of conduct that is presumptively consistent with good faith conduct in broadcast carriage talks. This practice has real, anti-competitive implications, making it more difficult for channels not affiliated with a top-rated broadcast station to obtain carriage," said ACA president Matt Polka.