Kansas Stations Seek Liberty-DirecTV Conditions
KAB Wants Deal Delayed Until Local Signals Delivered Throughout U.S.
By Ted Hearn -- Multichannel News, 1/17/2008 5:25:00 AM
Washington – Kansas-based TV stations want the Federal Communications to hold up Liberty Media’s bid to take effective control of DirecTV until the satellite TV provider agrees to deliver local TV signals in every U.S. market by the end of 2008.
The Kansas Association of Broadcasters stated its position at the FCC in a letter dated Nov. 30, 2008. However, it didn’t appear in the FCC’s computer systems on until Jan. 11, 2008, nearly six weeks later.
“A large part of Kansas is served by small market television stations. Because of the need for local programming, especially in the event of severe weather, disasters, and other emergencies, it is critical that these small market stations are able to reach their audience with life-saving information,” KAB said in the filing.
Liberty agreed in December 2006 to part with its 19% voting stake in News Corp. in exchange for News’s 38.5% interest in DirecTV, three regional sports networks and cash in a deal valued at $11 billion. It was at first expected to close by the end of 2007, but is being held up at the FCC and Justice Department.
DOJ is concerned about Liberty chairman John Malone’s influence over both DirecTV and a cable company serving a portion of Puerto Rico. At the FCC, TV station groups in North Dakota, Texas and Kansas have been pressing the carriage of local TV signals issue. Satellite carriage, which usually involves cash, gives local TV stations leverage to demand payment from local cable systems.
The U.S. has 210 TV market, but DirecTV provides local signals in about 145 that contain about 94% of TV households.
In the most rural markets, DirecTV has told the FCC that it plans to offer digital signals from local TV stations on a seamless, integrated basis but not via satellite — possibly through a set-top connected to an over-the-air digital tuner.
At a press conference Tuesday, FCC chairman Kevin Martin declined to discuss details of the agency’s review of the DirecTV transaction.
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