Distribution

Dish, DirecTV: STELA Should Be Video Reform Vehicle

Offers Up Host of Changes They Would Like to See 3/18/2014 4:22 PM Eastern

 

In response to a request for input from the Senate Commerce Committee on reauthorization of the satellite Television Extension and Localism Act (STELA), Dish and DirecTV dropped that hammer-and-tongs competition to file a joint response with a laundry list of suggestions including permanent reauthorization.
 
STELA is the law that grants a blanket license to satellite operators to deliver distant network affiliated TV stations into local markets. But it is also the only must-pass video legislation on the horizon. It could be a vehicle for various video reforms, but the cleaner the bill the more likely it will pass by the Dec. 31 deadline.
 
A House draft of STELA already sports a few video reforms, though ones that broadcasters, cable ops and satellite companies appear to be able to live with.
 
In their response to the Senate, Dish and DirecTV were clearly on the side of striking while the iron is hot, which means using STELA as a vehicle for major retrans and other reforms. "It is time for Congress to act, and STELA reauthorization presents the perfect vehicle," they wrote.
 
It will need to be a stretch limo to accommodate the satellite operator's wish list, which in addition to a permanent reauthorization--it is currently every five years--comprises the following:
 
"• Stop local programming blackouts;
• Put an end to drastic retransmission consent rate hikes; and
• Ensure that the most rural households in the U.S. have access to the same network
programming as urban and suburban households.
In support of these principles, we advocate specific measures to amend current law, including:
• Authorize the FCC to impose baseball-style arbitration and a standstill so the
programming stays up while the parties arbitrate their dispute; or, alternatively,
permitting the importation of distant signals during retransmission consent disputes.
• Stipulate specific, anti-consumer actions that would fail the “good faith” requirement.
• Prohibit joint sales agreements and other collusive methods used by broadcasters.
• Update the definition of 'unserved household' to reflect how Americans actually
receive over-the-air broadcast signals today, as opposed to how they did decades ago.
• Prohibit broadcaster blocking of online content to the broadband subscribers of a
multichannel video programming distributor (“MVPD”) during a dispute with that
MVPD.
• Encourage the unbundling of broadcast programming from other programming, both at
the wholesale and retail levels.
• Permanently reauthorize STELA."
 

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