Polka: Retrans Revenue Points To Need For Action
American Cable Association Chief Tackles Topic At Regional Cable Show
By Kent Gibbons -- Multichannel News, 3/18/2008 10:44:00 AM
Broadcasters’ rising revenue from retransmission consent leads to higher cable costs and underlines the need for federal action to give cable operators flexibility regarding the issue, a lobbyist for small cable operators said at a regional cable convention.
Matt Polka, CEO of the American Cable Association, said gains in retransmission fees reported by such broadcasters as Nexstar, Hearst-Argyle, LIN, Belo and Sinclair come “disproportionally” against small and independent cable operators.
The ACA has asked the Federal Communications Commission to give small operators rights to retransmit broadcast networks on reasonable rates, terms and conditions that don’t include having to also carry numerous other channels as part of a bundle and don’t include tiering or distribution requirements.
“Our industry is at a crossroads,” Polka said at the North Central Cable Show in Minneapolis. “Retransmission consent is a government-created rule that must be changed by government for the sake of our customers; we are at the mercy of the broadcast industry that benefits from government-sanctioned advantage. Fees are up more than 20% in the past year alone, and cable operators and their customers are paying the price.
“Your business hangs in the balance. Change will only come about if the cable industry collectively works together to reform retransmission consent,” Polka, said, according to the ACA.
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Lammers is one lame MOFO. Let's be clear here - broadcaster management are the ones whom were left in the dust when they did not foresee cables strength in garnering a lions share of eyeballs thus putting their business model on its ear. The public needs to be educated that broadcasters are using taxpayer subsidized free airwaves to deliver their signals and now want to double dip the consumers pocketbook to make up for a short-sighted and a failed business model. Wake up Lame-O Lammers - it's not too late - the tide will change in favor of the American consumer and the question is - how will you explain your incompetence to your shareholders when that day comes?
Quigley Spargus - 3/19/2008 10:26:00 AM EDT -
Actually the change is the loss of monopoly control by cable operators over the use of local stations without the right to negotiate ANY carriage terms. The cable industry could have solved this problem in the 80's or 90's if they wanted to advance a partnership with broadcasters. Now, satellite and telco are banging on the door of every home in America, and cable will get left in the dust. Where was the consumer rights stance before retrans, as cable rates advanced 3-5x inflation, and ESPN sub fees advanced past $2.50 per month?
Duane Lammers - 3/19/2008 8:00:00 AM EDT
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