Time to Rethink Old Cable TV Rules

The Cable Act of 1992 turns twenty years old in 2012.  Not old enough to drink, but certainly mature enough to recognize that it needs to be updated.  To commemorate the 20 year anniversary, the U.S. Senate Committee on Commerce, Science, and Transportation is holding a hearing titled, “The Cable Act at 20.”  The Taxpayers Protection Alliance sent a letter to the Senate today urging the Senate to revisit the 20-year old Act and support the Next Generation Television Marketplace Act of 2011 (H.R. 3675 and S. 2008), sponsored by Rep. Steve Scalise (R-La.) and Sen. Jim DeMint (R-.S.C.).  One of the key provisions in the legislation would be the change in retransmission consent laws.  Before you click away, retransmission consent laws are a big part of why we hear about certain programs or sporting events being blacked out.  The 1992 Act gives broadcasters an advantage in negotiations with monopoly cable providers, granting broadcasters the right to choose between guaranteed carriage or insisting that multichannel video programming distributors (cable and satellite providers) obtain and pay for a station’s consent to retransmit the station to local subscribers.  Needless to say, the television landscape has changed drastically since 1992.  The fact is that there are no longer cable monopolies and broadcasters have a choice among many providers such as cable, satellite and fiber optic networks.  This has given broadcasters the upper hand in negotiations. Broadcasters have used this advantage to force cable and satellite providers to pay outrageous fees or carry extra channels on their basic tiers.  This lopsided leverage has caused program blackouts until a deal is reached and  a huge increase in what customers pay as broadcasters’ pass these fees as higher rates to customers.

Read full letter below:

July 23, 2012

United States Senate
Washington, D.C.  20510

Dear Senator:

As the U.S. Senate Committee on Commerce, Science, and Transportation holds their hearing on “The Cable Act at 20,” the Taxpayers Protection Alliance would like to reiterate its support of  the Next Generation Television Marketplace Act of 2011 (H.R. 3675 and S. 2008), sponsored by Rep. Steve Scalise (R-La.) and Sen. Jim DeMint (R-.S.C.).  Their legislation would repeal, among other things, must-carry and retransmission consent rules.  Good news for consumers and sports fans around the country that get held hostage by the FCC and broadcasters when a blackout is threatened.

The Communications Act of 1934 was amended in 1992 to give broadcasters an advantage in negotiations with monopoly cable providers, granting broadcasters the right to choose between guaranteed carriage or insisting that multichannel video programming distributors (cable and satellite providers) obtain and pay for a station’s consent to retransmit the station to local subscribers.  Needless to say, the television landscape has changed drastically since 1992.  The fact is that there are no longer cable monopolies and broadcasters have a choice among many providers such as cable, satellite and fiber optic networks.  This has given broadcasters the upper hand in negotiations. Broadcasters have used this advantage to force cable and satellite providers to pay outrageous fees or carry extra channels on their basic tiers.  This lopsided leverage has caused program blackouts until a deal is reached and  a huge increase in what customers pay as broadcasters’ pass these fees as higher rates to customers.

H.R. 3675 and S. 2008 eliminates retransmission consent and compulsory license provisions.  This will place the negotiations between television content and service providers on a more even playing field, a common sense idea because cable monopolies are a thing of the past.  And, broadcasters do not need to be protected anymore because of this change in the cable industry.

Technology and delivery of video programming has changed quite a bit in the last 20 years.  It is now time for the Senate to recognize that change and support the Next Generation Television Marketplace Act of 2011.

Sincerely,

David E Williams
President