The FCC’s two Republican Commissioners are bitterly disappointed. The NAB and broadcast TV station owners are likely angered. With the 3-2 approval by Democrats of the 2018 Quadrennial Order, the “Top Four” rule for broadcast TV was tightened, not loosened. One cable TV advocacy group is pleased — suggesting retrans wars possibly influenced the Chairwoman.
The American Television Alliance (ATVA) issued a statement early Wednesday (12/27) in response to the FCC’s order closing broadcast ownership loopholes. And, it is happy — especially as it seeks to end retransmission consent battles between MVPDs and broadcast station owners on the grounds that the latter group is solely to blame for the impasses.
While retransmission consent battles are not so simple, with broadcast TV companies seeking more and more dollars for the right to give cable TV service providers the ability to profit from their addition to local TV lineups, the ATVA made it clear the 2018 Quad Act’s passage helps it in its fight to stop the “blackouts.”
“We applaud the FCC’s efforts to help consumers by closing loopholes in its broadcast ownership rules,” said ATVA spokesperson Cora Mandy. “For too long, these loopholes have allowed broadcasters to control distribution of two, three, or even all four major networks in markets throughout the country.”
This, Mandy added, “is part of the reason broadcasters have been able to raise their rates by more than 5,000 percent since 2006—even while viewership for these stations has dropped 45 percent during the last decade. Today’s action promises some long-awaited relief for consumers and their pocketbooks.”
The “broken” retransmission consent system led to over 200 “blackouts” in 2023 alone, ATVA claims. “The FCC’s decision is a significant step towards ending predatory practices by broadcasters at the expense of subscribers and ensuring broadcasters fulfill their public interest obligations,” she concluded.
Meanwhile, in a separate but nevertheless related rulemaking proceeding, the FCC Chairwoman Jessica Rosenworcel in October brought forward a pair of proposals by circulating them among Commissioners. They would “would further the FCC’s strategic goal to empower consumers in the media marketplace” and seek comment on rebates for consumers in the event of a retransmission consent impasse that leads to a “blackout.”
“Enough with the blackouts,” Rosenworcel said. “When consumers with traditional cable and satellite service turn on the screen, they should get what they pay for. It’s not right when big companies battle it out and leave viewers without the ability to watch the local news, their favorite show, or the big game. If the screen stays dark, they deserve a refund.”
A vote on a Notice of Proposed Rulemaking came to be, even with reservations from Republican Nate Simington.