Block Communications, owner of TV stations, newspapers and cable systems says larger broadcasters and cable operators need to be reined in. It suggests the FCC increase its existing powers to ensure that broadcasters and pay TV operators negotiate retrans deals in good faith. Block also suggests that the FCC limit its intervention to retrans cases in which the pay TV operator serves fewer than 400,000 subs and the TV station group owns or operates at least 25 TV stations — or in which the pay TV operator serves more than 1.5 million subs and the broadcaster owns or operates five or fewer TV stations.
Block Seeks Limited FCC Retrans Intervention
The FCC should crack down on larger broadcasters and cable operators alike when they abuse their power by making unreasonable demands during retransmission consent negotiations — or so says Block Communications Inc., the Toledo, Ohio-based owner of TV stations, daily newspapers and Buckeye Cablevision Inc., in a petition at the agency.
“Cable consumers need the commission’s protection from the vicious cycles that have fueled service disruptions and unconscionable increases in retransmission consent fees — and ultimately consumer cable rates,” said Block, in a May 6 petition for a rulemaking seeking retransmission consent reforms.
In its petition, Block, which is currently locked in a retrans dispute that has forced its cable systems to black out the signal of WNWO, Sinclair Broadcast Group’s NBC affiliate in Toledo, suggests that the FCC enhance its enforcement profile by beefing up its existing powers to ensure that broadcasters and pay TV operators negotiate retrans deals in good faith.
Block also suggests that the FCC limit its intervention to retrans cases in which the pay TV operator serves fewer than 400,000 customers and the TV station group owns or operates at least 25 TV stations — or in which the pay TV operator serves more than 1.5 million subscribers and the broadcaster owns or operates five or fewer TV stations.
“These thresholds would guarantee that increased FCC oversight of good-faith bargaining would only be triggered in situations where one party has the incentive and ability to abuse its bargaining power,” Block said.
Block also recommends in its petition that the FCC limit its enhanced oversight role to disputes in markets smaller than the top 30.
BRAND CONNECTIONS
Under the proposed reforms, either the broadcaster or cable operator could complain,and both parties would be required to provide viewership ratings and other information to demonstrate that their negotiating positions are “reasonable in the light of prevailing market conditions.”
Under the plan, parties that the FCC decides are acting in bad faith would be required to provide “periodic” status reports to the agency to demonstrate that they have changed their negotiating postures for the better.
“In cases where a party consistently or repeatedly refuses to negotiate in good faith, the commission should consider other relief such as forfeitures or such other remedies as the commission may fashion to protect consumers,” Block said.
In its petition, Block says that Buckeye serves about 130,000 cable subscribers in Ohio and southeastern Michigan. Block also owns five full-power TV stations including WAND, the NBC affiliate in Champaign-Springfield-Decatur, Ill. (DMA 84), and WDRB, the Fox affiliate in Louisville, Ky. (DMA 49). In addition, Block owns The Blade newspaper in Toledo and the Pittsburgh Post-Gazette.
Comments (7)
Joanne McDonald says:
May 7, 2014 at 8:08 pm
I’m for snapping and cracking down and cramping down to curb down on retransmission consent abuse and misuse.
My solutions and answers to end retransmission consent abuse and misuse is when a bean counting and bloated broadcaster pulls a station signal or multiple station signals off from any MSO 3 to 5 times within the last 5 to 10 years, fails to be very honest on how the bean counting and bloated broadcaster is suppose to be using the payments from the retransmission consent fees on what the broadcaster is paying for what the broadcasters are receiving from the MSO’s, fails to allow the MSO to restore the station signal or multiple station signals in time before the Super Bowl, the NBA playoffs, the NHL playoffs, the World Series, the Academy Awards, the Olympics, and other marquee events on broadcast television is that the bean counting and bloated broadcaster can automatically receive the most stiffest and most severe penalty ever and suffer the death penalty in the television broadcasting industry meaning that the broadcaster can no longer exist and get to stay in business to continue ownership of TV stations and that the head or heads of the broadcasting group can no longer be allowed to stay involved in the TV business as a way to curb down on retransmission consent abuse and misuse right now. The FCC would allow any minority broadcaster (African Americans, Hispanics, Asian Americans, Asian Islanders, Native Americans, Europeans, Austrians, Women, ETC.) to automatically took and take all total control of all affected TV stations from all retransmission consent disputes between the broadcasters and the MSO’s effectively without any interference and any difficulties whatsoever from the non-minority broadcasters.
My idea of a broadcasting group and a broadcaster getting FCC’s own version of the death penalty in the broadcasting business does very badly apply to David Smith, Barry Faber, David Amy, and their colleagues at Sinclair Broadcasting Group meaning Sinclair Broadcasting Group can no longer exist and get to stay in business to continue ownership of TV stations with David Smith, Barry Faber, David Amy, and their colleagues at Sinclair Broadcasting Group can no longer be allowed to stay involved in the TV business as punishments for their continued failure to allow Buckeye Cable System the proper chance to be able to carry WNWO without Sinclair’s permission till Buckeye Cable is willing to agreed to pay $2 ($.50 NBC, $1.00 local and syndication, $.50 to help launch the cable news channel Sinclair is launching) dollars for the privilege and right to carry WNWO again and agreed to carry the new cable news channel that Sinclair is using to take WJLA’s News Channel 8 into a national news channel for Sinclair that isn’t yet on the air that Sinclair wants all the cable and satellite to carry the cable channel on cable and satellite basic tier as part of all retransmission consent contracts to put their news and opinions on the planned news channel by engaging in old rigid Paramount Pictures block booking and old RKO General bribery behavioral practices in retransmission consent deals that Sinclair will launch if their planned acquisition of TV stations from Allbritton were to go through the FCC, the FTC, and the DOJ as a way to curb down on retransmission consent abuse and misuse right now.
Wagner Pereira says:
May 8, 2014 at 12:36 am
After reading the main story and seeing the key words Toledo, Sinclair and Blackout, all one needs to know when they see 2 words “James Cieloha”, no reason to read any further. Cliff Notes will always be: Sinclair = bad, David Smith = bad, some unrealistic undervalued amount for NBC on a cable system showing JC has no idea of what value NBC programming and its P18-49 numbers are worth, and the typical 500+ words about comparing it all to RKO, Paramount and Casablanca records. How did I do for not reading his dribble?
Carol Thompson says:
May 8, 2014 at 4:54 am
Beautifully. As usual!
Stephanie Harrison says:
May 8, 2014 at 9:08 am
JC will set you free!
Michael Ford says:
May 8, 2014 at 11:12 am
Bravo!
Gregg Palermo says:
May 8, 2014 at 8:36 am
Quit your whining, Block, and pay up. My 80-year-old mother-in-law wants to watch The Voice.
Kristine Melser says:
May 8, 2014 at 3:30 pm
I understand the David vs Goliath battle at hand and even Goliath has a weakness that will be exposed at some point if anyone gets the biblical sense of the story. Sinclair has bigger fish to fry at that station than demanding triple the retrans fee.