Ending Exclusivity Rules Must be Paired With a Limit on Network Interference in Retrans, ACA Says
Stations and their networks "undoubtedly" will use affiliation agreements to ensure stations' exclusivity rights are protected the same way they are now under exclusivity rules, minus some prohibition on network interference into affiliates' out-of-market retransmission consent negotiations, the American Cable…
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Association said in an FCC ex parte filing posted Monday in docket 10-71. It said ACA officials told FCC representatives the group worries that eliminating exclusivity rules (see 1509040016) will lead to networks significantly broadening affiliates' zones of exclusivity, eliminating access to out-of-market stations -- even significantly viewed stations and stations serving "orphan counties." Some networks already have a general policy against permitting affiliates offering out-of-market carriage, and if the FCC eliminates the exclusivity rules, "this trend, if left unchecked, will spread farther," ACA said. That can be stopped through either a new per se violation of good-faith negotiations or by making clear that existing per se violations extend to that type of network interference, ACA said. "While the commission may wish to end the use of its processes to enforce privately negotiated exclusivity rights, it should preserve to the greatest extent possible the ability of willing broadcasters to negotiate with MVPDs [multichannel video programming distributors] for distant signals that best satisfy customer needs by preventing network interference with long-standing arrangements between MVPDs and out-of-market stations." Ross Lieberman, ACA senior vice president-government affairs, met with staff of Commissioners Mignon Clyburn and Jessica Rosenworcel. In a separate ex parte filing posted Monday in 10-71, CenturyLink said it supported axing the network non-dupe and syndex rules, saying they "serve only to give local broadcasters a monopoly on national syndicated and network programming." Barring that, CenturyLink said, the exclusivity rules agreements on network programming should be suspended in retrans negotiation impasses. "No public interest is served by depriving consumers of network programming solely because a local broadcaster demands supra-competitive retransmission fees," the telco said Senior Vice President-Federal Policy and Regulatory affairs Melissa Newman told Clyburn and Rosenworcel representatives and staffers of Commissioners Ajit Pai, Michael O'Rielly and Chairman Tom Wheeler in meetings.