Analyst: Sinclair Greed May Lead to Retrans Fix

The massive blackout of Sinclair Broadcast Group stations could be the catalyst for government action that levels the playing field on retransmission consent negotiations that have been overwhelmingly favorable to broadcasters up till now. In a research note, BTIG analyst Richard Greenfield says that with the Federal Communications Commission and Congress already looking at the cost of the cable bundle, the latest dispute with Dish Network could be the straw that breaks the camel’s back. FCC Chairman Tom Wheeler said he directed the FCC’s Media Bureau to have an emergency meeting with Sinclair and Dish to restore programming to consumers.

“Sinclair’s actions vis-à-vis Dish look to us like lighting a match in a dry brush field,” Greenfield says. “The government is looking for reasons to get more involved to help consumers. Sinclair may have finally given them a blatant enough excuse.” The result of what Greenfield call's Sinclair's greed could be bad for all broadcasters and help distributors. “It could very well lead to a reform of retransmission consent negotiations that helps level the lopsided playing field,” he said.