NAB objects to retrans blackout reports

The National Association of Broadcasters has filed an official objection to a proposed rule that would require retransmission blackouts to be tracked by the FCC and made available to the public.

The FCC is currently considering a proposal that would require multichannel video programming distributors (MVPDs) to report any blackouts lasting longer than 24 hours due to a breakdown in retransmission consent negotiations.

Under the current framework, the FCC would also be responsible for maintaining a historical database of any such blackouts. 

The NAB, however, has filed paperwork objecting to proposal, which is currently in its public comment period, saying that, should such a database be started, it would be to “gather information for the sake of having information.” It also suggested that the rule would violate the Administrative Procedure Act and the Paperwork Reduction Act, because of a lack of “discernible purpose.”

TV providers are already required to notify consumers when channels become unavailable due to such disputes, which the NAB says makes the FCC’s proposal duplicative.

Retransmission dispute blackouts have become increasingly common as TV station and network owners seek to boost their revenues by demanding that MVPDs, which include cable, satellite and Internet-based TV services, pay more and more for the privilege of carrying a channel or group of channels.

These battles often pit station owners against pay TV operators, with both sides pointing the finger at each other. It’s not uncommon for station owners to activate extensive marketing campaigns attempting to blame the blackout on the provider and encouraging consumers to contact the vendor or switch providers. 

On the opposite side, TV providers often opt to replace blacked out station feeds with information that attempts to emphasize its efforts to keep package prices low as the reason for the disruption. 

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NAB argues that a national database of retrans disputes would “incentivize” more disputes because cable and satellite providers see an advantage in spotlighting or “generating” these disputes. 

Meanwhile, two key industry groups, the NTCA-The Rural Broadband Association and NCTA-The Internet & Television Association, have largely supported the FCC’s efforts.

NTCA has even gone as far as to suggest that the FCC should be required to have access to financial offers made by station owners. As of now, these negotiations and offers are largely kept confidential, and there is no rule saying that information has to be disclosed to a federal authority. 

Both NTCA and NCTA represent different segments of the pay TV industry, with NCTA counting members such as Comcast and Charter among its ranks. NTCA membership includes smaller operators. 

A second round of comments closes March 26, 2024, and a final decision on a blackout reporting system is expected by the end of the year.