news-record.com

NEWS

Cable, satellite TV firms ask government to stop TV blackouts

Article
Comments (10)

Wednesday, March 10, 2010

(Updated 2:07 pm)

By
Associated Press

Cable, satellite TV and other video providers have asked the government to intervene in ongoing fee disputes with TV networks - big-money fights that are expected to escalate this year as more contracts expire.

The most recent showdown between the two sides left millions of Cablevision customers around New York with a black screen at the start of the Academy Awards.

About 15 minutes into the show, a scrolling announcement told viewers that a tentative agreement had been reached.

As advertising revenue has weakened, TV networks have begun to demand cash for their programs rather than some of the advertising swaps that have been acceptable in the past.

Rising tensions between cable and the networks has brought together one-time rivals including Time Warner Cable Inc., Dish Network Corp., DirecTV Inc., Verizon Communications Inc., and even a consumer rights group.

The companies and a consumer rights organization sent a petition the Federal Communications Commission, seeking an intervention Tuesday.

They cited concern over the leverage that broadcasters have during negotiations, namely the ability to shut down TV signals when talks don't go their way.

Last weekend was not the first time such tactics had been used.

Late last year, Time Warner Cable customers faced the threat of losing their Fox stations, which broadcast shows like "The Simpsons," and "American Idol," during a standoff with News Corp., which owns Fox.

"Consumers are increasingly being put in the middle of disputes," Time Warner Cable said in a statement. "The petitioners implore the FCC to act expeditiously to help prevent further consumer harm."

Cable companies want regulators to banish the ability of broadcasters to yank TV signals during contract talks. They also want the FCC to put into place mandatory arbitration or other measures to prevent black TV screens.

The National Association of Broadcasters is not backing down.

"To see billion dollar pay TV companies asking for government intervention to protect their exorbitant profits is just plain wrong," the industry group said in a statement.

One cable company was conspicuously absent from the petition sent to the FCC.

Comcast, the nation's largest cable operator, will become a broadcaster if its plan to take control of NBC Universal is approved.

Advertisement | Advertise with Us

Comments

View Comments

This article has been closed to new comments. Comments are generally closed after 14 days. However, comments may be closed earlier at the discretion of the News & Record.

Inappropriate content? Please report abuse.

Panacea

March 10, 2010 - 2:35 pm EST

Hmm.

Neither side has clean hands. If the petition is approved, the cable companies lose their incentive to bargain.

There needs to be a middle road. Sure, give the FCC power to order mandatory arbitration; with the authority to yank chains on both sides if they don't behave.

blackstream

March 10, 2010 - 3:01 pm EST

Ultimately, we're to blame for this mess as consumers. We allow them to dictate whatever they want to charge. If they have fewer, or no customers, the message would be very clear. It's sad when we have to pay to see any stations. How long do you think those converter boxes will last? Not long, and you'll be forced to pay to see any TV at all. I understand they need to make a profit, but they're already making a fortune and complaining if any of that profit is lost.

kurgun

March 10, 2010 - 4:25 pm EST

I agree with blackstream here. The problem with the networks is they obviously don't understand what risk is about when in a business. The networks when they start to lose money want to start crying for ways to recover their losses. How many businesses do this same thing on a daily basis only to shut down instead of finding ways to restructure. Here to me what's happening is all those top execs of the networks are starting to lose their ability to go on those overly priced vacations so they're crying about it. Remember that execs are at the top of the pyramid and make more than anyone else in the company for doing most likely the least amount of work. To send a message, yes, people need to quit their cable and sattellite television subs, that'll really put the hurt on them, then all those network execs will back down because then they'll be potentially faced with being out of work, that's what happens when you take things for granted. It will kick you square in the teeth.

jstevenh1952

March 10, 2010 - 8:23 pm EST

Protest with your dollars.

jstevenh1952

March 10, 2010 - 4:29 pm EST

BooHooHoo...cry the cable and satellite companies. Please Mr. Government help us. Make them play fair.

The cable and satellite companies have a significant capital investment and should be entitled to whatever the market can bear. If you use their access to their customer base, you should pay for it. No on FCC intervention! We do not need the Government regulating our private television and media purchases. This has serious 1st and 5th amendent issues.

We choose to have cable or satellite for the service they provide. If we choose not to, then we put up an antenna and get our local stations for free. Understand this, we live in a capitalistic country. We don't want the Government regulating our media.

deacon

March 10, 2010 - 5:31 pm EST

Correction, please, we LIVED in a capitalistic economy. Bet you the Obamaites are already over this!

batshalom

March 10, 2010 - 7:58 pm EST

We are no longer a capitalistic economy? Weird. I could have sworn we were. Would you explain why you believe otherwise? (Emotional language for its own sake does not support any side of any argument.)

jstevenh1952

March 10, 2010 - 8:30 pm EST

Probably won't see much of a response.

deacon

March 10, 2010 - 8:43 pm EST

This is my third attempt to reply but my message seems to get deleted. We have gone from self-responsibility to demanding "rights" we have not earned. A capitalist keeps what he earns without paying into a government so it can redistribute the fruits of his labor to those who chose not to earn. Before unjustly condemning me, I strongly believe provisions should be made for the unfortunate who can not work.

DonMoore

March 10, 2010 - 6:13 pm EST

Turn off the TV, read a book... or download a book.

The problem is that the networks want to piggy-back their lesser networks on the back of their popular networks. As a result, we get channels that you never watch mixed in with channels you love. Nobody wins - we get more channels; but are required to pay more as a result.