FCC Chief Worried Over Retrans Aftershocks

Genachowski Sees ‘Legitimate Questions' With Review Process

By John Eggerton -- Multichannel News, 4/13/2010 1:14:49 PM

Federal Communications Commission chairman Julius Genachowski said Tuesday that he favored the marketplace over the government in retrans negotiations, but said he still thought their were "legitimate questions" about whether the process needed review.

Speaking at the National Association of Broadcasters convention in Las Vegas, he suggested that his focus is on the consumers who are affected by retransmission-consent impasses.

"I agree that the market is the preferred method to determine broadcast-cable arrangements," Genachowski said in his keynote speech. "At the same time, these commercial negotiations between broadcasters and multichannel video providers affect third parties who aren't at the table."

He said he was concerned about the effect on cable rates of broadcasters getting cash for their programming, as well as the "program interruptions."

"There are legitimate questions about whether to update the 20-year-old framework for retransmission consent and must-carry," he said. "As we move forward, I'll be focused on making sure we have a framework that is fair to consumers, as well as each of the businesses involved."

The FCC has opened an inquiry into the retransmission-consent regime, prompted in part by congressional criticism of retrans and recent impasses that threatened college bowl games and the Academy Awards.