FCC Chairman Wheeler accuses cable companies of shutting out minority TV channels

Will minority programmers be hurt or helped by a Federal Communications Commission plan to boost competition in the set-top box market? That's one of the most contentious questions raised since FCC Chairman Tom Wheeler proposed rules that would make TV channels available on more third-party devices and applications.

Chairman Wheeler's aim is to give consumers more choices beyond the set-top boxes rented from cable providers. But those third-party systems might not display minority content as prominently as traditional cable TV systems, according to cable lobbyists and minority programmers that oppose the plan. Chairman Wheeler contended the opposite in a letter to members of Congress. Cable TV companies are shutting out minority programmers today, but the proposed set-top box rules will make it easier for viewers to find minority programming, Chairman Wheeler argues. Chairman Wheeler also said he will continue with the rulemaking proceeding despite calls for a delay.

"As the video ecosystem evolves it should be creating more opportunities for independent and minority-owned programming," Chairman Wheeler wrote. "By using the set-top box as a way to limit program carriage, however, multichannel video programming distributors (MVPDs) constrict opportunities. While the most popular MVPD packages contain 200 to 500 channels, there are currently only two Hispanic-owned and four African-American owned networks. Not only is there limited carriage, but there is also limited financial support. While a channel like ESPN is paid over $7.00 per month per subscriber by MVPDs, minority channels receive pennies. What's more, minority networks are often placed on premium tiers requiring an additional payment from the consumer which also limits potential advertising revenues by limiting potential audience reach."