ACA Addresses Rising Retransmission Consent Payments
Organization says it will not push for retrans reform as part of the current reauthorization of SHVERA
By John Eggerton -- Broadcasting & Cable, 5/7/2009 5:40:07 PM
The American Cable Association Thursday pointed to rising retransmission consent payments to stations, saying that, long-term, it will push for a solution to that "problem."
Broadcasters are increasingly pushing for cash compensation for what they see as high-value content for cable operators. But ACA sees it differently, arguing that financial results for first-quarter 2009, "one of the softest economic periods in decades," show some whopping retrans payment increases that border on the obscene.
"When cable customers want to know why their bills keep going up, all they need to do is look at how TV stations exploit retransmission consent to squeeze every penny they can from pay-TV providers, especially ACA's small, independent cable companies," said ACA President Matthew Polka.
While ACA says it will defer to the will of Congress and not push for retrans reform as part of the current reauthorization of the Satellite Home Viewer Extention and Reauthorization Act, that didn't stop it from pointing to what it considered excessive payments and to a system it says is broken.
ACA cited Journal Communications' 333.3% gain in payments (to $1.3 million), Hearst-Argyle's 97.8% boost to $12.4 million, and LIN TV's increase of 82% to $8.9 million.
Broadcasters see retrans as a way to tap into the dual-revenue-stream model that has cable operators doing well in tough times, when ad-supported models are losing their ad support. It is almost certain that those payments are the only category on broadcaster balance sheets currently showing such strong gains.
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Taxpayers beware - broadcasters were given the airwaves they transmit signals over for FREE by our government. Now broadcasters to tax you if you are a cable customer. Say no and contact your cogressional representatives - tell them free TV shoould be FREE! Cable operators, if you are not already doing so - add a broadcaster line to your customer bills detailing the monthly cumulative amount per household that is applied to broadcaster retransmission consent. We must educate the consumer!
Quigley Spargus - 5/11/2009 10:45:32 AM EDT -
Broadcasters should be prepare to see retrans fee's end or be reduced at somepoint, since Washington always kills a good thing. The ACA is whinner central but Washington listens to whinner's. Broadcasters need to get your multicast rights now in your retrans deals.
Multicast will be worth more in long run!
Chip Harwood - 5/8/2009 12:39:48 PM EDT -
All small operators should support ACA's efforts. They have been way out front on this costly issue that directly increases the costs of video to consumers. ACA's efforts to highlight the problem, and FCC "good faith" rules are the only negotiating leverage small operators have.
Marc Jennings - 5/8/2009 12:30:09 PM EDT -
ACA has it right. Local broadcasters our getting more money for there locals. I knew a year back $51.99 was a package deal with DirecTV which jump $6.00 dollars. Locals our no longer free. DirecTV grandfathered a price freeze on DirecTV, which lOCALS our no longer free now. Dish Network provide locals and they noticed Fisher Communication demanding a 80% price increase and a lawsuit by fisher Communication on Dish Network. IF YOU RATHER NOT PAY FOR YOUR LOCALS, THEN BUY A OFF AIR ANTENNAE. Local media is getting away with high price gouch. My distant networks with NPS price has doubled. I own a RV.
Thomas Ingram II - 5/7/2009 9:39:16 PM EDT
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