NAB, together with the affiliate associations of the four major television networks, filed an opposition last week to a pay TV industry petition to alter the existing retransmission consent process. In the filing, NAB and the affiliate groups argue that the existing retransmission consent process is fair and benefits consumers, and that the FCC should not tip the rules in favor of pay TV providers.

Several pay TV companies filed a petition in March asking the FCC to change the retransmission consent rules. Specifically, the cable companies urged the FCC to require arbitration of disputes if pay TV providers contend that negotiations have broken down, and to allow pay TV providers to keep carrying broadcast signals even absent broadcaster consent until an impasse is resolved. Pay TV providers argued that the FCC should change the rules in light of increased competition between pay TV providers, because they contend that increasing retransmission consent fees lead to higher prices for consumers and because programming disruptions due to failed negotiations harm consumers.

NAB and the affiliate groups counter that retransmission consent fees amount to only a small fraction of pay TV's programming costs, despite the fact that broadcast television continues to supply the most popular programming. The pay TV industry has never demonstrated any relationship between retransmission consent and the rates they charge their subscribers. Further, consumers remain far more likely to lose access to a local television signal because of a cable system outage than a negotiation failure. Finally, the filing explains that the rule changes requested by pay TV contrary to law – approving the pay TV industry's requests is beyond the FCC's authority.

Reply comments regarding the petition are due June 4. To read the NAB and affiliate group opposition, click here.