Broadcasters’ rising revenue from retransmission consent leads to higher cable costs and underlines the need for federal action to give cable operators flexibility regarding the issue, a lobbyist for small cable operators said at a regional cable convention.
Matt Polka, CEO of the American Cable Association, said gains in retransmission fees reported by such broadcasters as Nexstar, Hearst-Argyle, LIN, Belo and Sinclair come “disproportionally” against small and independent cable operators.
The ACA has asked the Federal Communications Commission to give small operators rights to retransmit broadcast networks on reasonable rates, terms and conditions that don’t include having to also carry numerous other channels as part of a bundle and don’t include tiering or distribution requirements.
“Our industry is at a crossroads,” Polka said at the North Central Cable Show in Minneapolis. “Retransmission consent is a government-created rule that must be changed by government for the sake of our customers; we are at the mercy of the broadcast industry that benefits from government-sanctioned advantage. Fees are up more than 20% in the past year alone, and cable operators and their customers are paying the price.
“Your business hangs in the balance. Change will only come about if the cable industry collectively works together to reform retransmission consent,” Polka, said, according to the ACA.
