Long-term retransmission consent contracts that multichannel video program distributors such...
Long-term retransmission consent contracts that multichannel video program distributors such as Charter, Time Warner Cable and DirecTV are already locked into would likely prevent them from switching to an Aereo type business model that avoids retrans rules, said Wells Fargo…
Sign up for a free preview to unlock the rest of this article
Timely, relevant coverage of court proceedings and agency rulings involving tariffs, classification, valuation, origin and antidumping and countervailing duties. Each day, Trade Law Daily subscribers receive a daily headline email, in-depth PDF edition and access to all relevant documents via our trade law source document library and website.
analyst Marci Ryvicker in an email to investors. “While we don’t doubt that the wheels are turning here, we just don’t view Aereo or an Aereo-type service as that simple of a solution,” said Ryvicker. Most MVPDs are at the beginning of newly signed retransmission consent deals, she said, meaning “an Aereo-type implementation” wouldn’t be viable until 2017 or later. It’s also unlikely that any MVPD would take such a step before court decisions firm up the question of Aereo’s legality, she said. Since Aereo isn’t currently defined as an MVPD, as are TWC and the other companies, it’s not legally obligated to pay retrans fees. “Unless the incumbent MVPDs give up a substantial amount of rights, we don’t see how they avoid retransmission consent requirements,” said Ryvicker. She said the issue could lead the FCC to revisit a 2012 public notice on whether over-the-top video providers should be classified as MVPDs. “IF OTT providers are eventually considered to be MVPDs, then the question of Aereo’s legality becomes moot -- since as an MVPD, it would be required to pay retransmission consent to every broadcaster in every market,” said Ryvicker. Aereo is facing lawsuits from broadcasters.