McCain Planning Fresh A La Carte Video Bill
Sen. John McCain, R-Ariz., is preparing to introduce a la carte video legislation, his spokeswoman confirmed Wednesday. The bill would compel cable and satellite operators to offer consumers a la carte pricing or lose their rights to the compulsory license to carry broadcast programming, industry officials told us. They said McCain staffers met with cable and broadcast lobbyists earlier this week to discuss the legislation ahead of its introduction. NAB and NCTA declined to comment.
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McCain’s spokeswoman didn’t say when the bill will be introduced. Industry officials said it will circulate well ahead of the Tuesday Senate Commerce Committee video hearing. The committee announced Wednesday that witnesses for the hearing will be: NAB President Gordon Smith, NCTA President Michael Powell, Dish Network General Counsel Stanton Dodge, and John Bergmayer, senior attorney at Public Knowledge. McCain has introduced a la carte legislation in past sessions of Congress that didn’t pass (CD June 8/06 p1).
McCain’s legislation contains a so-called Aereo provision to deter broadcasters from restricting their on-air programming and migrating it to cable, said industry officials. Under the bill, broadcasters that shift their programming to a pay-TV network would lose their spectrum rights and subsequently their TV licenses, sources said. It’s unclear how exactly the legislation would enforce the provision and whether the bill would then require the FCC to auction broadcaster’s relinquished spectrum for wireless use, the officials said.
Executives at several networks have publicly threatened to take their programming off the air to thwart the business model of online-TV startup Aereo, which streams broadcast-TV signals to consumers via the Web. The threats came after Aereo won a 2nd U.S. Circuit Court of Appeals ruling denying broadcasters a preliminary injunction against the service (CD April 5 p9). Broadcasters have subsequently asked the full 2nd Circuit panel to re-hear their case for a preliminary injunction (CD April 17 p4). Aereo, which streams New York City broadcast TV programming transmitted by tiny Web-connected antennae, recently told the U.S. District Court in New York that it plans to expand its service to Boston starting Wednesday (CD May 8 p7).
McCain’s bill would also eliminate the FCC’s sports blackout rule, industry officials said. The rule, which requires broadcasters to black out local coverage of sports events like NFL football games if they're expected to be poorly attended, has been criticized by some lawmakers for being unfair to consumers. The commission has a petition pending to end the four-decade rule (CD Nov 15/11 p3).