Cable Family Tier Doubts Voiced by FCC’s Martin, Copps
Cable family tiers may not meet consumer needs, FCC Chmn. Martin and Comr. Copps said a day after senators carped about the packages’ paucity of sports and other popular content (CD Jan 20 p1). Martin, though less critical than Copps, said he shares some worries voiced Thurs. by Sen. Lautenberg (D.-N.J.) and Va. Republican Sen. Allen and other legislators.
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“The concerns raised by the senators are serious,” Martin told us Fri. after an FCC meeting that featured a review of 2004 agency efforts. Asked about Hill skepticism and cable contracts curbing the number of family tier networks, he said: “I'm definitely going to have concerns about that.” Under their contracts with programmers, cable firms are limited in the number of customers they can sign up for family tiers and also guarantee penetration, industry officials have said (CD Jan 13 p2).
In the wake of a Nov. Senate forum, 4 cable firms have unveiled family tiers, with Bresnan Communications the latest bandwagon jumper. “We can’t commit to anything yet, but it is safe to say that they will most likely look similar to the offerings of the other MSOs,” said a spokeswoman for Bresnan. Comcast, Time Warner and NCTA didn’t comment.
Viewers dislike limited family tiers, said Copps. “People are already complaining that these tiers do not generally include such things as sports or news channels,” he said in a statement to us: “You have to ask yourself if these offerings are a truly meaningful option.” Channels to be available in family tiers for about $30 monthly include Disney Channel, C-Span and The Weather Channel -- less popular than Disney’s ESPN and other channels with racier content.
Copps and Martin had faint praise for the tiers. “I'm very pleased that they are providing consumer choices,” said Martin. “I commend the operators for offering a family tier,” said Copps.
Family tiers will widen under pressure from consumers, FCC and Congress, analysts predicted, also anticipating fights between programmers and video distributors. “Cable might be interested in reopening programming contacts that affect family tier penetration, but it’s not clear that programmers would go along with that,” said former FCC aide Paul Gallant, now at Stanford Washington Research Group. But there may be room to agree, Gallant said: “You're already seeing pressure in that direction, such as the absence of sports.” Expansion is “just a question of when,” said an industry observer who asked not to be identified but said cable operators “have shown a good-faith effort.” The Commission doesn’t appear poised to act soon on the tiers. “We'll see how it plays out in the market,” said Martin.
Also on the agenda: reviewing stalled media ownership rules, said Gregg. After court losses in 2001 on cable limits and in 2003 on media ownership rules, the FCC has dodged those topics. During Kathleen Abernathy’s 4-1/2 years at FCC, her biggest letdown was that efforts on a media ownership rule did not fare better, she said before leaving office (CD Dec 8 p2).
Martin hopes to end the logjam, he said. “It’s important that we do move forward,” said Martin, recalling a failed July bid to introduce a rulemaking. He pledged to “continue to try to work with all my colleagues” on the issue. A long-awaited Media Bureau reworked report endorsing cable a la carte may be publicized within a week, said Martin. Another priority is reviewing a pending $17.6 billion takeover of Adelphia, said Gregg and Martin. “We are continuing to work on it, we are receiving data from the parties,” said Martin, describing the review as making “good progress.”