Boucher: Negotiated Solution to Delivering Signals to Split Markets Necessary
Says he will try to pass most narrow version of SHVERA possible
By John Eggerton -- Broadcasting & Cable, 3/31/2009 12:49:46 PM
Broadcasters and multichannel video providers need to come up with a negotiated solution to the problem of delivering TV signals to so-called "split markets," or one will likely be imposed by Congress. That is the message from Rick Boucher (D-VA), chairman of the House Communications, Technology & Internet Subcommittee.
Boucher, speaking at a National Association of Broadcasters State Leadership conference in Washington Tuesday, said he understood broadcaster's concerns, but that there would need to be some fix to the split-market issue.
As part of its consideration of the Satellite Home Viewer Extension and Reauthorization Act (SHVERA), Boucher's subcommittee is considering modifying the distant signal rules to allow satellite, and potentially cable, to import signals from adjacent markets in certain cases, including so-called "split markets" where the market crosses state lines and viewers in part of the market are getting stations from the neighboring state.
Broadcasters argue that cable operators can already negotiate for carriage of the local news and sports on adjacent-market stations to rectify that problem, but that changing the law to allow them to import network and syndicated programming duplicates programming already in the market.
Boucher said he would try to pass the most narrow version possible of the SHVERA act, without "collateral issues" like retransmission consent reform (heavy applause from the broadcaster crowd). But he said a couple of issues would inevitably come before the committee. One was allowing the importation of signals from adjacent markets to markets that lack that particular network affiliate signal, which is not controversial and which he supports. Another, he said, was making sure that satellite operators carry TV stations in all 210 local markets (more applause). "I frankly have a feeling that unless we have a statutory mandate, the time may never come," saying that statutory requirement is "the best thing we can do."
There remain about 30 markets where satellite operators have yet to deliver local signals--usually because they are too small to get a return on the expense of delivering the service, EchoStar, for one, has pointed out. But one of those markets is in Boucher's district.
The other unavoidable issue is adjacent-market signals, or split markets, he said. Boucher said he understood that allowing the carte blanche importation of adjacent-market signals "could be very disruptive of our tradition of giving broadcasters dominance in their DMA's," but he said that the "unfortunate reality" is that if a proposal by Rep. Mike Ross (D-Ark.) to allow that importation were put to a vote today, "it would very likely pass."
"In the instance of markets that straddle state lines, we have a necessity to find a solution," said Boucher. "Rep. Ross has strong support for his provision, but I think there are ways that his needs can be met, and broadcasters needs can also be met. But that only comes with a conversation involving all of the relevant parties."
He did not have any suggestions for solutions himself, but said that what was needed was "a negotiated solution in which we find a way that satisfies the core concerns that he has addressed. And there are probably a number of innovative ways to do that. But at the same time preserves to the greatest possible extent the traditional dominance of local broadcasters within their DMA's."
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I am General Manager of a very small market TV station in the Yuma - El Centro DMA. Our market is only two counties; one county is in Arizona the other in California.
We employ people in both states and we work very hard to cover news on both sides of our state borders. Our audience is very close to a 50-50 split between Arizona and California so both states are of near equal importance to us and thus get near equal news coverage.
If our cable and satellite systems are allowed to import distant signals it is a certainty that at least one local station will go off the air. If it is not my station, it's very likely we will end up without local news. That will not help localism.
I can't understand how Los Angeles, Phoenix or San Diego stations are going to be better at doing local than we are.
Losing our syndex, and network non-dupe will be a disaster to our business. I can't see a way to survive it, especially based on the difficulties all of our local stations are currently facing.
To make matters worse, DirecTV does not offer local-into-local in our DMA; so we're not getting retrans money from them.
According to research we've found at Nielsen, hundreds of DirecTV customers in our DMA are lying about their location and already getting the signals from other markets through DirecTV. This has caused hit shows like CSI to only post 1 ratings on the Demos, while distant CBS stations are showing audience in our market. When 40% of your market is ADS, it is a huge problem.
Through a loophole, DirecTV already provides LA channels to the 92283 zip code that is located between the two cities of license for my DMA (actually the zip code of my transmitter). This is achieved because Nielsen reported that a part of that zip code crossed a county line into a a non-contiguous portion of the LA DMA in 2002.
Congress needs to put a plan together to address enforcement of the current laws and require the satellite companies to provide access to my station in my local market. There is not a way to make this situation work for the entire country, without small rural markets getting destroyed by larger metropolitan markets, with more resources.
Please write your congressmen and senators to get this stopped!
Andrew Wyatt - 3/31/2009 5:50:47 PM EDT -
Allow importation of out of market stations, but pay the in market station the equivalent of retrans cash. For example, if a customer in market A receives NBC from market B, the market A NBC station gets their 10 cent per sub fee and the market B station gets their 10 cent sub fee. The customer pays more, but it should make everyone happy. Open this up everywhere and it could be big business. Transplants and snowbirds may pay to watch their "home" stations.
Shawn - 3/31/2009 5:16:09 PM EDT
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