NAB: GAO Agrees That Eliminating Exclusivity Rules Could Have Drastic Effects
Don't eliminate exclusivity rules as long as cable operators still retain their compulsory license rights, or else operators will be more easily able to import distant signals, hurting TV station revenue, NAB said Tuesday, pointing to a GAO report in…
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a filing in docket 10-71. The report, released in April, looked at the possible effects of eliminating broadcast exclusivity rules, with one of its conclusions being that broadcasters would likely see lower retransmission consent fees, which in turn "could reduce stations’ investments in content, including local news and community-oriented content; the fees households pay for cable television service may also be affected" (see 1504140041">1504140041). NAB, which has been fighting FCC Chairman Tom Wheeler's proposal to eliminate the syndicated exclusivity and network non-duplication rules (see 1509080045), quoted liberally from the GAO report in its filing and attached the 33-page document, saying it agreed with the GAO that removing the exclusivity rules could lead to lower quality and lower quantity local content. GAO is studying what the effects would be if Congress phased out current licensing requirements, NAB said. Given all these circumstances, NAB said, the FCC "should not attempt harmful piecemeal alterations to the broad legal and regulatory framework governing the television programming marketplace."