NAB accuses retransmission reformers of manufacturing a crisis

Broadcasters warned the Federal Communications Commission that retransmission reform advocates of “manufacturing” disputes to “spur the government to regulate more heavily.” The FCC is about to tread into the thorny, never-ending debate over the retransmission consent regime as prescribed by language in the satellite reauthorization bill (STELAR) passed in 2014. In a section (103) of the bill, Congress asked the FCC to commence a rule making within nine months “to review its totality of the circumstances test for good faith negotiations.”

Meeting with FCC officials the week of July 6, executives from the National Association of Broadcasters argued that nearly all retransmission consent agreements are inked without any interruption to consumers’ service. But as August draws near, the NAB predicted that some pay TV companies would create conflict to try and convince the FCC to make changes to the current retransmission consent regime. “The commission should… not be surprised by an uptick in pay TV-manufactured disputes as it launches its… proceeding. The commission should keep a close eye on this trend, as bad actors should not be rewarded with government assistance, especially when those actions come, yet again, at consumers’ expense,” the NAB wrote in an ex parte filed with the FCC on July 13. Citing recent SNL Kagan data, the NAB argued that retrans fees are not the leading reason why consumers’ pay TV bills are growing.