Will the FCC Stop Cable Blackouts?

Is the FCC doing enough to stop payrelated channel blackouts on cable and satellite systems? The commission says yes. The American Cable Association says no.

Channel blackouts are the bane of cable and satellite viewers. Local TV stations want pay-TV operators to pay them for “retransmission” of their channels. PayTV operators balk at the cost, which often includes astronomical price hikes. And when the negotiations get bare-knuckled, channels are blacked out on the screens of paying customers who just want to see their local news, weather reports, and baseball games, regardless of who is paying what to whom.

The FCC has courageously chosen to tackle the problem by, uh, deciding not to increase its existing oversight, which includes a set of standards for whether the parties are negotiating in good faith. But the existing regs haven’t prevented an epidemic of blackouts over the last several years.

The American Cable Association, which represents small to medium-sized operators, says it is “appalled,” noting that “millions of consumers...have repeatedly been victimized by broadcasters’ heavy-handed bargaining tactics, such as pulling signals prior to a marquee event like the Oscars or baseball’s All-Star Game.” The ACA also wants the FCC to ban blackouts of online programming, which might otherwise enable consumers to catch blacked-out programs online.

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