AMC's Dealings With Cable Operators Prime Example of Broken Video Market, Say ACA, NCTC
AMC Networks is a poster child for problems small and mid-sized cable operators face in getting "fair, reasonable and non-discriminatory" programming agreements, American Cable Association and National Cable Television Cooperative members told FCC Media Bureau staff, said an ex parte…
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filing posted Tuesday in docket 15-158. Large programming conglomerates like AMC demand escalating rates and coerce carrying of unwanted programming, ACA and NCTC said, saying such demands also increasingly don't allow for exceptions for small "channel locked" cable systems that have no capacity for additional channels. Their remaining choices -- charge unreasonable prices or drop channels -- "can be seen as a barometer for the industry as larger, more powerful pay television providers will likely face the same bundling and pricing demands and bandwidth constraints in the future," the industry groups said, saying NCTC members with roughly a million subscribers are considering no longer carrying AMC because of behavior such as forced bundling of low-rated networks. AMC also is discriminatory in its pricing and carriage, proposing rates to NCTC members twice what it charges other cable services, and the company uses such strong-arm tactics as crawls at the bottom of screens warning viewers they may lose networks soon, the two said. AMC also has removed cue tones from some operators' programming feeds, disrupting the insertion of local advertisements into commercial breaks, AMC and NCTC said. While pointing to AMC as proof of a broken video market, the two didn't recommend specific changes but asked the FCC to keep such matters in mind when assessing the state of competition in the video market. AMC didn't comment Wednesday.