The trade group says the FCC should impose the same basic regulations on online video distributors as they do on MVPDs. Among other things, that would include retrans and must-carry obligations.
NAB: Treat OVDs Same As Cable, Satellite
The NAB today endorsed the FCC proposal that online video distributors (OVDs) wishing to carry broadcast signals must obtain retransmission consent from the owners of the signals just as cable and satellite operators do.
“There is simply no question that, regardless of the technology used to distribute video programming, broadcasters have the right to control access to their signals,” the NAB said in comments in an FCC proceeding aimed at writing rules for OVDs.
“If implemented correctly, the extension of retransmission consent to these new services will ensure that OVDs have access to the most popular programming; broadcasters maintain the right to negotiate for fair compensation that enables substantial re-investments in high-quality, costly programming, including local news; and that a competitive balance is maintained among video distributors that choose to include broadcast signals among their offerings,” the group said.
Like other MVPDs, OVD seeking retrans consent deals should be required to negotiate in good faith, the NAB said. In addition, it added, the FCC should allow broadcasters to negotiate for assurances that their signals will not be pirated, watched outside their local markets or “materially degraded.”
While applauding the FCC for recognizing broadcasters retrans rights in the OVD world, the NAB scolded the agency for ignoring other rules that the trade believe should apply to OVDs, including syndex and network non-duplication. Those rules undergird broadcasters’ retrans rights by enforcing stations’ exclusive local rights to syndicated and network programming.
The FCC “does not discuss how the congressional and commission objective of fostering local news and information will be met absent some enforcement mechanism comparable to the program exclusivity rules for cable operators and unserved household restriction for DBS providers,” it said.
BRAND CONNECTIONS
If the FCC fails to apply syndex and network non-dupe to OVD operations at this time, the NAB said, it should “at the very least make clear that such obligations will be applied in the event OVDs become eligible for compulsory copyright licenses.”
The group said the FCC should also consider imposing on OVDs the same public interest obligations on they now impose on and satellite, particularly the must-carry obligation that cable operators carry all TV stations that ask for carriage.
“By requiring carriage of commercial and noncommercial stations on cable, Congress sought to further important governmental interests in the continued availability of free over-the-air local television for viewers and promoting viewers’ access to information from diverse sources.”
Comments (2)
Grace PARK says:
March 3, 2015 at 4:59 pm
For broadcasters, the quickest path to self-destruction online is to duplicate its one-to-many tactics. It’s about the users/viewers, people, not your wants and needs. When will you ever get that?
Joel Ordesky says:
March 3, 2015 at 6:57 pm
Unlike MVPD’s which continuously retransmit a program whether or not it’s being viewed, an OVD only retransmits a program when requested by the user. When a user doesn’t watch a particular channel, no retransmission has been performed and payment shouldn’t be required. Likewise, “must carry” is almost meaningless if the OVD allows the user to selectively “tune” any available channel prior to retransmission. Online, there are no assigned channel frequencies or slots for “channels.”
This is a fundamental difference in distribution technology that really requires a change in legislation rather than trying to fit the new technology into an antiquated model.