Sources: Sen. Commerce Floats Retrans Remake

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osu1991

SatelliteGuys Master
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Sep 4, 2004
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http://www.multichannel.com/news/policy/sources-sen-commerce-floats-retrans-remake/383056

http://multichannel.com/news/policy/sen-commerce-meeting-nab-ncta-over-stela/383054

Under a proposal reportedly being floated to broadcast and cable execs at a meeting requested by the Senate Commerce Committee Friday, cable subs would be the ones deciding whether they wanted to pay the per-sub fee charged by TV stations, and could choose which TV stations they wanted to have in their cable package.

The goal is to end blackouts and the pitched battle between MVPDS and broadcasters over retrans, and is being discussed in relation to reauthorizing of the Satellite Television Extension and Localism Act, which the committee is preparing to take up in earnest next month.


The proposal, which was being billed as "Local Choice," would essentially end retrans negotiations between cable, satellite and broadcasters for local station carriage, with cable operators essentially acting as collecting agents for the TV station payments made by subs to broadcasters.
 
It will end retransmission consent for local networks. They will either choose must carry in which the cable and sat companies carry them free of charge or they can choose a fee they want to charge and then it would be up to the consumers whether they wanted to pay for a certain local or not. The cable and sat companies would just collect the payment and pass it thru to the local owner. There would be no added costs by the carriers and no bundling in all packages. It would be a pure alacarte offering.

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I like it. Since we're never (or hell freezing over) going to get government out of this game, this would be a big improvement. The broadcasters will fight this with every fiber of their being, of course, since we would soon find out just how much they really are worth.
 
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It will end retransmission consent for local networks. They will either choose must carry in which the cable and sat companies carry them free of charge or they can choose a fee they want to charge and then it would be up to the consumers whether they wanted to pay for a certain local or not. The cable and sat companies would just collect the payment and pass it thru to the local owner. There would be no added costs by the carriers and no bundling in all packages. It would be a pure alacarte offering.

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IOW, we're never gonna see it happen.


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It's very close to what should be happening, if there is any chance for it I think it works. Is ABC going to take a chance of setting a fee and not having many subscribers, while CBS just has must carry? There has to be penalty however - if a fee is desired, but not many will pay, they have to wait a year to go must carry.
 
I like the idea in theory, but what happens to the guide data if someone elects not to pay for a local channel? I don't need Dish to provide any of my local programming. I do need them for the guide data.

My other question... couldn't the cable/satcos do this now? Give each subscriber the choice of whether to pay for the locals (like Dish did before).
 
My other question... couldn't the cable/satcos do this now? Give each subscriber the choice of whether to pay for the locals (like Dish did before).
They could if they could get retrans agreements that allow it. I'm sure stations insist it is all in the DMA or nothing currently. I haven't read the details, but I assume the law would take that option away from the stations.
 
It will end retransmission consent for local networks. They will either choose must carry in which the cable and sat companies carry them free of charge or they can choose a fee they want to charge and then it would be up to the consumers whether they wanted to pay for a certain local or not. The cable and sat companies would just collect the payment and pass it thru to the local owner. There would be no added costs by the carriers and no bundling in all packages. It would be a pure alacarte offering.

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OH, I see. Thanks for the translation. I see a problem with hoppers and ptat feature working correctly if this goes through. I also see an excuse to turn this into a reason why we don't need ota transmissions any longer. If affiliates can't make enough money from subs , they might go out of business and the networks themselves may just go all cable and end all ota transmissions over affiliates. They could do what FOx and Cbs have been threatening to do and just show sd versions of their shows instead of HD. They could even just show old reruns over their affiliates if they wanted to and hasten the end of the entire network/affiliate structure. Either way we end up paying more for watching the shows we get from satellite for $6.00 a month and for free over ota. Somehow I see this well intended proposed changes ending badly for all.
 
OH, I see. Thanks for the translation. I see a problem with hoppers and ptat feature working correctly if this goes through. I also see an excuse to turn this into a reason why we don't need ota transmissions any longer. If affiliates can't make enough money from subs , they might go out of business and the networks themselves may just go all cable and end all ota transmissions over affiliates. They could do what FOx and Cbs have been threatening to do and just show sd versions of their shows instead of HD. They could even just show old reruns over their affiliates if they wanted to and hasten the end of the entire network/affiliate structure. Either way we end up paying more for watching the shows we get from satellite for $6.00 a month and for free over ota. Somehow I see this well intended proposed changes ending badly for all.
Many people want their locals (or certain locals) because of the LOCAL content. Whether that is news, sports, weather, or other locally produced shows, there will still be local broadcasters. While I don't believe the "big 4" will go cable/sat only in the near future, even if they did, local broadcasters would still survive. OK, maybe not all of them, but they won't all disappear either.

Also remember networks don't own/control even the majority of their affiliates. In fact, affiliates PAY to use the network programming (a change from how it used to be).

Another thought... how do you think the cable/sat cos get their LiL content? Yes, some may have direct fiber feeds from the affiliates, but that's much more expensive than... wait for it... OTA. :D
 

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