Mediacom Says It’s Talking With Google on Preferred Access
Google is negotiating preferred access with cable operators, said Mediacom Pres. Rocco Commisso, even as he criticized content providers seeking network neutrality rules. Commisso and Cable One Pres. Tom Might told an American Cable Assn. panel that broadcasters and programmers aren’t playing ball with smaller cable operators on retransmission consent and a la carte. Net neutrality remarks from Commisso, known in the cable industry as one of its most outspoken executives, were the most controversial remarks at the conference.
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“If people use our pipe, we should get something out of it,” said Commisso. Google, only several years old, is “asking for special favors already,” he added. With the company’s market value over $100 billion and low costs, he questioned whether “they need special favors in Washington.” Mediacom wants to recoup its more than $1 billion in spending for cable upgrades, Commisso told reporters: “I should have an ability to get a return on our investment… Let the law stay the way it is.”
Commisso said he’s nonetheless open to deals with the likes of Google. “Us and other companies are already talking to Google,” he said, in what he described as a potential deal “where they may get preferential treatment.” Google didn’t respond to repeated requests for comment. The company and rivals including eBay have asked lawmakers to support net neutrality rules, while cable operators have joined with Bells to oppose mandates.
Broadband and VoIP are helping growth prospects at Mediacom and Washington Post Co.’s Cable One as video programming costs have shot up, said Commisso and Might. Increasing fees sought by TV stations in retransmission consent talks have fueled that increase, said the executives, who want Congress to reform rules on such negotiations. Programmers should voluntarily let cable offer more digital tiers so customers pay for the programming they want, Might said: “Tiering can happen in a digital world very easily, but the programmer has to get there… They've got to allow us to sell it in packages where everybody doesn’t have to pay for everything.” Video “profitability is a little less… Thank God for VoIP and high-speed data,” said Might. Referring to telco entry into video and cable VoIP, Commisso said: “We're getting into a business that’s pretty good. They're getting into a business that is pretty lousy.”
Commisso said he wants programmers to let his firm sell channels individually. “I don’t think mandated a la carte by the government will ever work,” he said: “On the other hand… what’s wrong with an optional a la carte regime?” Programmers don’t support a la carte because most studies show it would hurt customers by raising prices, said an NCTA spokesman. NCTA does agree with Commisso that govt. a la carte rules aren’t desirable, he said. The group doesn’t have a stance on retransmission consent. “The must- carry/retransmission system is working well,” said an NAB spokesman, citing a recent FCC study.
Small cable firms’ gripes about retransmission consent resonate with FCC Chmn. Martin, Media Bureau Chief Donna Gregg told the conference. Rising cable rates and customer choice are hot topics at the FCC, she said: “Those are things that our chairman is very interested in.” But the FCC hasn’t acted on an American Cable Assn. request because staff still are studying filings on the topic and the Commission is working on a number of issues, said Gregg.
Retransmission consent is likely to remain an issue on Capitol Hill, though plans for a measure by Reps. Bass (R- N.H.) and Deal (R-Ga.) on the topic failed. “We don’t have an amendment that was accepted,” said Tad Furtado, Bass’s legislative dir.: “We do have an issue that will percolate… We have a way to educate lawmakers.” Hill interest in the subject has prompted company action, said Todd Smith, Deal’s deputy chief of staff: “It has brought on a lot more people than we thought would get involved.”