Will ‘Broadcast Fees’ Impact the Retransmission Conundrum?

[Commentary] The latest attempt by video service providers to address the ongoing challenge of rising retransmission fees for local broadcast TV signals is the introduction of ‘Broadcast Fee’ line items on subscriber bills.

These ‘below the line’ fees of $1.50 to as much as $4 are being introduced by video providers, large and small and follow a similar approach for the rising costs of regional sports networks. These rising fees have stimulated controversy and have stoked a debate regarding fairness and greed. So is this pricing trend more about recovering costs or trying to influence the debate? Maybe it’s both. Video service providers (VSPs) tend to get most of the blame for the rising costs and the blackouts that result from contentious retransmission negotiations. But is that a fair indictment? VSPs obviously would like to change that perception, and finger programmers, broadcasters, and sports leagues as the true culprit for rising cable bills. There are skeptics of course, including consumer advocate groups who argue that there is a cozy relationship between programmers and VSPs, both of whom are benefiting from the current arrangement.