Verizon Files Program Access Complaint Against Cablevision
Wants HD Version of MSG Network For FiOS TV
by John Eggerton -- Multichannel News, 7/8/2009 1:14:58 PM EDT
Verizon has filed a program-access complaint with the FCC against Cablevision, saying that the cable operator should be compelled to sell HD programming from its Madison Square Garden Network to the telco and its FiOS multichannel video service.
Verizon said the company has "intentionally and unlawfully" refused to make that unique programming available. The unique programming it is focused on includes the New York Knicks, New York Rangers, New York Islanders, New Jersey Devils and Buffalo Sabres. The Knicks basketball team and Rangers hockey team play home games in Madison Square Garden (pictured).
Verizon said that Cablevision has told analysts that its own carriage of the programming in HD is a competitive advantage.
The Federal Communications Commission has said that coverage of local sports teams is the kind of must-have programming for which there is not a ready substitute.
Cablevision does sell the programming to Verizon in standard definition, but Verizon said that was only after it filed a similar access complaint and complaints that with growing demand for HD sports, the high-definition versions should be considered similar must-have programming.
"MSG complies fully with federal regulations, which do not require us to license our local HD programming to anyone," Madison Square Garden Network said in a statement. "MSG is glad to have Verizon as a customer of our satellite-delivered programming, which has provided them with access to every single game on MSG and MSG Plus."
By contrast, the HD versions are delivered terrestrially. The FCC requires satellite-delivered programming owned by MSOs to be made available to competitors, but does not require the same access to terrestrially delivered programming per the so-called "terrestrial loophole."
One of the issues the FCC is currently considering is whether or not to close that so-called terrestrial loophole.
National Cable & Telecommunications Association President Kyle McSlarrow said he was not surprised by Verizon's complaint, pointing out that it had been trying to make that argument for a couple of years. But he suggested the government was already ranging too far afield as it is.
"It is a remarkable intrusion into the marketplace for the government with the program access rules to determine who can sell what to whom," McSlarrow said. "All of these companies should be trying to invest in new products and services and differentiate themselves from their competitors. Our competitors can do that just as surely as we do."
Verizon has asked for a decision out of the commission within five months.
By late afternoon Wednesday, Cablevision had added an exclamation point to its defense of its programming strategy with a counterattack on Verizon.
"Cablevision functions in the most competitive environment in the country and the idea that a phone company more than 10 times our size needs a regulatory bailout is absurd," the company said in a statement. "The phone company's problems are due to things like copycat products, poor customer service, confusing bills and long-term contracts filled with fees and excessive termination penalties."
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Oh really, the National Cable & Telecommunications Association, of which Cablevision is a member, feels that way? What a surprise.
I think the state of NY needs to take every tax break associated with MSG away from these anticompetitive idiots
JK - 7/9/2009 3:28:48 PM EDT -
The terrestrial loophole prevents consumers from having a choice of providers for their HOME teams (which are usually subsidized in some form or another by their tax dollars) the NFL ticket is for "out of market" games.
M. Richards - 7/9/2009 8:18:06 AM EDT -
Hopefully they also do something about the BS deal Cablevision has with MSNBC preventing FiOS carraige wherever they have a system too.'>If Sunday Ticket ever goes up to bids and ends up on cable too it would likely be iNDemand (owned by Cox, Comcast and Time Warner) doing the bidding on behalf of all cable systems like they do for every other pro sports package and no bidding would take place on the small ops level. The only thing small ops would need to do is agree to distribution terms, like carraige of the NFL Network like the NHL, NBA and MLB now require for their packages.
Hopefully Cablevision loses and the FCC closes this BS land loophole and strips any grandfathering too. Since it's complete BS that providers can withold key programming AND use this fact in their marketing. Or add a clause that if they offer it one competitor, they have to offer it to ALL competitors, since DirecTV has carraige of MSG's HD channels and in Philly Comcast allowed FiOS to have CSN Philly.
Hopefully they also do something about the BS deal Cablevision has with MSNBC preventing FiOS carraige wherever they have a system too.
KyL - 7/8/2009 7:53:15 PM EDT -
As a small cable op, I have the same problem with the NFL Sunday Ticket that Direct TV has. In Canada you can buy it on a number of systems. Here in the US only if you has Direct TV. We can not afford to bid for the package, so we loose the edge even if we do everything better.
Jessie Mason - 7/8/2009 7:19:42 PM EDT
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