As next Thursday's FCC meeting approaches where a set-top box NPRM may be considered on making it easier for consumers to get encrypted TV content carried through the boxes without getting one from their multichannel video programming distributor, MVPDs with concerns about any rules and NPRM backers are lobbying the agency. That is according to ex parte filings posted Tuesday and Wednesday in docket 15-64. If the FCC moves forward with its proposals for the set-top market, it should seek comment on possible exceptions for smaller cable operators, said the American Cable Association in meetings with aides to Chairman Tom Wheeler and Commissioners Jessica Rosenworcel, Ajit Pai and Mike O’Rielly. “At a minimum,” the FCC should “tentatively conclude that all-analog systems should be exempt from any new requirements,” ACA said. The agency's proposals would “directly interfere with and jeopardize” its ability to provide programming for Latino viewers, programmer Hola TV wrote Wheeler. “The proposal would allow some large Internet companies to unilaterally take our content without our approval, or compensation, disassociate it from existing negotiated channel placements, and enable those entities to sell intrusive advertising absent a mechanism to share any revenue with programmers." Dish and EchoStar don’t oppose “exploration of the [Downloadable Security Technology Advisory Committee]’s recommendations regarding adoption of competitive navigation devices,” they said jointly. The FCC shouldn’t adopt “overly simplistic solutions that could damage competition and hinder innovation,” Dish and Echostar said in a meeting with staff from Clyburn’s office. Pai should vote for the NPRM, said the Consumer Video Choice Coalition in a meeting with him, according to an ex parte filing. “The Coalition has proven that competition holds the technology solution for ending the era of forced set-top box leasing from large incumbent" multichannel video programing distributors, said the filing. By moving forward with the NPRM, the FCC “will be fulfilling its mandate” in Section 629 of the Communications Act to “ensure that consumers have access to competitive devices that are interoperable with MVPD networks,” the CVCC said. Coalition members include Google, Incompas, Public Knowledge and TiVo, its website said. Another group, begun the day FCC Chairman Tom Wheeler said he would circulate the NPRM (see 1601270064), includes ACA, Dish, MPAA and NCTA, its website said.
The NAB is concerned that the FCC's set-top box proposals could threaten broadcaster control over their content and copyright, said NAB President Gordon Smith in an interview on C-SPAN's Communicators scheduled for telecast Feb. 20. If the FCC proposals for set-top boxes become rules, tech companies such as Google could become “gatekeepers,” Smith said.
The FCC Media Bureau didn't know about the largest single-station sponsorship identification enforcement action in the commission's history until the day before the Enforcement Bureau announced it (see 1601070060), said MB Policy Division Assistant Chief Robert Baker, the agency's expert on political advertising rules, of the $540,000 consent decree with Cumulus. Panelists at a Monday FCBA CLE on political ads discussed new online political file rules, ad rate regulations and the current presidential race. The Media Bureau received numerous inquiries from broadcast attorneys concerned about receiving similar violation notices after Cumulus, Baker said. But he said he believes it was a "wild card" rather than an indication of how the FCC will treat sponsorship ID violations going forward.
The FCC will block three Class A broadcasters from participating in the incentive auction and will disqualify an additional Class A broadcaster to make its case against the others stronger, an FCC official and several industry officials told us. The order denying reconsideration petitions from Fifth Street Enterprises, Videohouse and WMTM and disqualifying Latina Broadcasters' WDYB Daytona Beach from participating is expected to be issued later this week. Latina had been listed as being included in the auction in filings last year. "What the FCC did to Latina is almost unbelievable," said Ron Bruno, owner of Videohouse, in an interview.
Opponents and supporters of FCC proposals to make the set-top box market more competitive (see 1601270064) loudly disagreed at a briefing Friday whether the plan would improve prospects for minority programmers. Officials from the Consumer Federation of America, Free Press, National Black Programming Consortium (NBPC) and Public Knowledge said making the retail set-top market more viable would create opportunities for minorities. Opponents in the crowd loudly challenged that assertion. Wednesday, the Justice Department backed the FCC issuing an NPRM (see 1602030017).
The Department of Justice's expression of support Wednesday for the FCC's planned NPRM on opening up the retail set-top box market could be a product of the numerous recent mergers in the pay-TV and set-top box industries, industry officials on both sides told us Thursday. In recent years, federal antitrust officials have reviewed and heard competitive concerns about deals that include Arris/Pace, Comcast/TWC, Charter/TWC and AT&T/DirecTV. "Every time there's a deal, interested parties go to Justice and tell them what they don't like about the deal," said Mediacom Senior Vice President-Government and Public Relations Tom Larsen. DOJ's taking a public stance in support of the NPRM before it has been voted is seen as a bad sign for multichannel video programming distributors, industry officials told us. DOJ didn't comment.
Nexstar’s proposed $4.6 billion buy of Media General is seen as likely to get FCC approval, though some details of the transaction remain unclear, communications attorneys and analysts told us. Though Nexstar has indicated it plans to divest stations in overlapping markets or sell their spectrum to get regulatory approval, CEO Perry Sook said on an investor call the specifics were still in motion. Along with specific divestitures, there are questions about how long the transaction (see 1601270040) will take to be approved, with the incentive auction just around the corner. Broadcasters are under pressure to expand to match with their growing and numerous competitors, making this deal “not surprising,” said BIA/Kelsey Chief Economist Mark Fratrik.
The Media Bureau received over 400 applications from Class C and D AM stations looking to relocate FM translators Friday, FCC officials told us Monday. “Almost one in ten AM stations in the country applied for an FM translator during the first 24 hours of the modification window,” said Commissioner Ajit Pai in a statement announcing those numbers. As expected (see 1601120064), the first-come, first-served aspect of the window caused applications to be front-loaded. FCC officials told us they expect the torrent of applications to slow to a trickle during the rest of the window for C and D stations. Brokers, FCC officials and broadcast attorneys told us they expected some more surges of activity as windows for A and B stations to relocate stations and 2017 windows to obtain new stations approach. Yet neither is expected to match the volume of Friday.
The public should "voice its opposition" to Nexstar's buying Media General for about $4.6 billion (see 1601270040), Cox Communications said in a news release Thursday. "Nexstar should not be allowed to become a larger company, which would force more cable TV/satellite companies and ultimately consumers to pay higher fees for retransmission consent." Nexstar is "demanding" that Cox pay triple the previous retrans price or Nexstar will remove its signal Friday, Cox said. Nexstar has expressed concern its deal could be held up by the impending incentive auction. FCC Chairman Tom Wheeler said Thursday after the agency's meeting that the question is likely academic because he expects the transaction approval process likely will take longer than the auction. He declined to give an exact estimate of the auction's length. Cox's "misguided plea to consumers" highlights "irrational thinking," Nexstar said in a released response Thursday. The expiring agreement between Nexstar and Cox dates from 2010, and Nexstar is seeking "slightly more than double" rather than triple the older rate, Nexstar said. If Cox has to raise rates to its viewers, it's because Cox has misallocated its programming fee payments, Nexstar said.
Industry officials expect FCC Commissioners Ajit Pai and Mike O'Rielly to oppose policy changes to move away from reliance on CableCARDs and toward successor standards, if not the NPRM set for a Feb. 18 vote that proposes the overhaul (see 1601270064). Both Republican commissioners repeatedly declined to comment Thursday on Chairman Tom Wheeler's proposed "opening up" of the set-top box market.