C Spire Petition Gets Broadcast Pushback, MVPD Backing
C Spire's petition saying an FCC modification of a commercial TV station's market to add communities makes that outlet and all its broadcast streams local for reciprocal retransmission negotiations in those communities (see 1906040031) is either an attempt to use…
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the agency to disrupt the network-affiliate relationship or a reflection of changing video market realities. Those were clashing broadcaster/MVPD arguments this week in docket 19-159 replies. C Spire and MVPD allies are trying "to hoodwink" the FCC into an "unprecedented [and] unlawful" level of government intrusion into retransmission consent and network affiliation agreements through its petition, NAB said. It said the pay-TV provider is trying to get the FCC to rewrite its retransmission consent agreement with Gray, while the declaratory ruling would only reiterate what MVPDs and broadcasters understand to be their good faith negotiation obligations after a market modification. CBS said what C Spire seeks -- a ruling that rules bar any restriction in a network affiliation agreement on a station’s ability to grant retrans -- could violate congressional content because it might significantly disrupt the relationship between a broadcast network and its affiliated stations, it said. Network affiliation agreements routinely and legitimately include obligations or restrictions, it said. Such a declaratory ruling would require a new rule and would have to go through FCC rulemaking processes first, Tegna said. Congress voiced concern broadcasters could use retrans agreements to limit MVPDs carrying signals that became local through the market modification process, so clearly a station can't condition a retrans grant for a local station in a market modification area on an MVPD either carrying or not carrying a non-commonly owned station, C Spire said. Affiliate consolidation, geographic restrictions in network affiliation agreements and dual big-four affiliations via multicast programming streams are distorting efforts to preserve localism and access to in-state programming, with those changes pointing to affiliation agreements involving retrans of stations found to be local following a market modification now are violating good-faith rules, the company said. Backing C Spire's petition, Pine Belt Communications said it also has video subscribers in an out-of-state designated market area and has had similar difficulties getting retrans consent to deliver local or significantly viewed stations. It said rural cable operators know well how DMA boundaries are broadcaster leverage in retrans negotiations in violation of good-faith rules. Along with its petition, C Spire filed a related retrans complaint against Gray.