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ACA Backs TW's 'Get Tough' Push

By Staff
TVNewsCheck, Nov 30 2009, 5:55 PM ET

The American Cable Association on Monday said it supports Time Warner Cable's decision to launch a campaign telling the public that the companies that own cable networks and TV stations threaten to cut off viewers from their content unless multichannel programming distributors sign new contracts with "egregiously large license fee increases."

"Small cable operators and their customers, who cannot afford to engage in hand-to-hand combat with price-gouging media conglomerates, applaud Time Warner Cable's efforts to ‘Get Tough' with programmers in hopes that some modicum of reasonableness will return to the market as a result," ACA president-CEO Matthew M. Polka said.

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ACA has sought new regulations that it says are "designed to ensure that owners of cable networks and broadcast stations may not discriminate against small and medium-size cable operators by charging them higher fees than those paid by larger operators in the same local market."

Also, ACA has urged policymakers to take action to prevent media conglomerates from using their market power to impose unreasonable tiering and penetration requirements on small cable operators, which results in consumers paying for programming that they have no interest in viewing.

ACA maintains that the market abuses of these media giants result in small cable operators having less money to build badly needed broadband infrastructure in rural communities and other economically challenging locations to serve.

"ACA hopes that Time Warner Cable's public relations campaign highlighting marketplace misdoings will lead Congress and the FCC to recognize that cable networks and broadcasters regularly abuse their market power — particularly against smaller cable operators — to drive up the cost of cable, limit consumer choices, and deplete capital that could be used to expand broadband in rural areas," Polka said.

Comments (4) - Post a comment

MoneyCruncher Nicknameposted 103 days, 2 hours, 16 minutes ago
À la carte. Let viewers decide what's worth paying for.
Positioning Nicknameposted 102 days, 13 hours, 8 minutes ago
My station is viewed by more people than ESPN in our local market. As soon as Time Warner offers to pay as much per sub for my station as they do for ESPN, this whole fight can go away.
William Nicknameposted 102 days, 12 hours, 38 minutes ago
As if TIme Warner isn't a "... price-gouging media conglomerate ..." ??

Look at the ratings that come out every morning. In almost every case in almost every market, not one single cable netowrk draws as many viewers, on a good day, as any top local broadcast station on an average day. The top rated cable channel most nights in my market is the Fox News Channel - usually O'Reily or Hannity. The best numbers I've seen in this market so far for those shows, in their key demos, has been something like a 5.2/9. Sure, a huge number for a cable news show ... but during that same hour, the top local broadcast station may be pulling a 12/18 with entertainment programming. Show me a single cable network that pulls anything close to double digit numbers. Most of the time, what I see day after day is hash marks.

So yeah, I agree with "Positioning" above - until the MSO's value the local broadcaster at a level even CLOSE to the $/sub they pay for these average performing cable networks, this will be a perrenial battle.
BBBoater Nicknameposted 102 days, 11 hours, 25 minutes ago
The TV station I work for receives a plethora of complaints from Time Warner subs about loss of reception. Time Warner ALWAYS tells them it is the station's fault, even if the loss is of multiple stations in the market. The entire cable industry was born and grew with the carriage of broadcast station programming which was provided free for decades, while upstart cable networks were paid a per sub fee AND sold advertising. This practice continues today. Isn't it time broadcasters were compensated the same as cable networks? During severe weather, earthquakes, and other disasters, what is the frist thing to fail? Wired services. There are battery operated TVs for viewers to receive emergency information, but there are no battery operated cable boxes (wouldn't work anyway because the cable would be severed).
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