How small cable companies say they get screwed by their larger rivals

Small cable companies say the cost of programming is hurting their business, and they’re placing the blame partly on bigger cable operators like Comcast and Time Warner Cable. Cable TV companies complaining about programmers charging high rates is nothing new. Even the very biggest cable companies in the nation, despite having great negotiating power relative to small operators, complain about the ever-rising cost of video programming. Thus, there are continuous disputes between cable companies and programmers.

But it's more complicated than that because the big cable companies also own a lot of TV networks, pitting them against small cable companies who have to buy programming from them. Comcast, for example, owns NBCUniversal and a bunch of regional sports networks. Time Warner Cable, which could be acquired by Comcast, also owns regional sports networks and has had tense negotiations with cable operators over programming fees.

Now the small cable companies are asking the Federal Communications Commission to intervene, arguing that they need to be protected from “cable-affiliated programmers” charging discriminatory rates. The argument came in a filing by the American Cable Association, which represents more than 800 small cable operators, telephone companies, municipal utilities, and other telecommunications providers in small communities and rural areas.