NAB Argues Against ACA Bundling Proposals

NAB today told the FCC that a request by the American Cable Association (ACA) that the FCC restrict bundling by programmers would undoubtedly lead to less diversity on pay TV systems.

The ex parte filing by NAB said ACA’s proposal, which includes limiting bundling “of a Spanish-language channel for cable systems with very few Spanish-speaking customers” and bundling of “an urban-interest channel for rural cable systems” would have “clear and extremely unfortunate exclusionary effects, and should concern the commission that its otherwise good intentions could be exploited by pay TV providers to target their programming channels in a manner more profitable for them but less diverse for consumers.”

NAB went on to say: “There is simply no reason for the commission to adopt policies ensuring that niche programming only reaches a narrow audience. Encouraging MVPDs to segregate their programming lineups according to race or ethnicity would not only undermine the fundamental goals of the Communications Act, but also leave us a less informed and educated nation.”

NAB said the ACA proposals “facilitates the ability of pay TV operators to discriminate against ‘urban’ or ‘Spanish-language’ channels. These and myriad other channels help make today’s video marketplace richer and more varied than ever before, and they should be allowed to flourish. The commission should embrace these opportunities, rather than allow bottom-line profit-maximization to drive its diversity policy.”

Later in the day, ACA CEO Matthew Polka responded: “For broadcasters to suggest that ACA’s position promotes “segregation … according to race and ethnicity” is unfortunate and highly misleading. ACA made a simple point: Overall diversity increases when individual small cable operators can choose the programming that best serves their particular local audiences (like independent Spanish-language programming in Puerto Rico). And overall diversity decreases when big conglomerates can force their national networks upon local audiences that may not want them (like the Esquire Network in some rural areas). Nothing about this position should surprise broadcasters — who, after all, have a rule allowing them to reject unwanted network programming.”