CABLE PROGRAMMERS PRESS CONGRESS TO AVOID DTV MUST-CARRY
Twenty-four senior cable network executives representing more than 70 channels fanned out over Capitol Hill Wed., lobbying key lawmakers against imposing digital must-carry requirements on cable operators. Meeting with 40 members of Congress, including most members of House and Senate Commerce Committees, cable programmers sought to counter increased lobbying and regulatory push by broadcasters for mandatory dual carriage of analog and digital broadcast signals during current DTV transition. “We know our competitors in the marketplace have been lobbying very actively on the Hill,” said A&E TV Networks Pres. Nick Davatzes, who chairs NCTA’s satellite networks committee. “We haven’t been spending enough time on the Hill.”
Cable programmers, who weren’t invited to testify at recent DTV must-carry hearings of House and Senate Commerce Committees, said they aimed to avoid repeat of analog must-carry rules imposed on industry by 1992 Cable Act. As result of those rules, such cable networks as C-SPAN, Lifetime and International Channel complained that they lost millions of subscribers as cable systems dumped them to make room for broadcast stations that had to be carried. Other cable networks saw their distribution growth stalled because of tight channel capacity on most systems. “We went through must-carry once,” AMC Networks Pres. Kate McEnroe said, warning of DTV must-carry’s potential to hurt 30 to 40 new digital cable channels already struggling for distribution on capacity-strained systems.
Rehearsing their arguments for lawmakers in news conference, cable programmers stressed that they would seek “level playing field” that didn’t put their channels at disadvantage. They also emphasized “diversity” of their offerings and tens of billions of dollars that they had invested in new programming over last 15 years. “Broadcasters want dual must-carry to guarantee their success,” Davatzes said, arguing that no industry should be granted that guarantee. “We're prepared to compete in the open market and we want them to compete [too].”
Cable programmers also sought to counter broadcasters’ claim that lack of dual carriage rules was hindering pace of DTV transition. Calling DTV must-carry “not just unconstitutional, unfair and un-American but also unnecessary,” C-SPAN Gen. Counsel Bruce Collins said transition “is moving at the pace it should, as decided by the marketplace.” He said Congress “can’t force” transition by passing new must-carry laws: “They can do all the face-saving they want. The market is not going to respond to that.”
Although FCC tentatively concluded in Jan. that dual carriage requirements would infringe too much on cable operators’ First Amendment rights, Commission still is weighing issue in further rulemaking. Cable programmers said they feared intensive lobbying by broadcasters would lead Congress to pressure agency for must- carry rules or to pass new rules on its own. While no must-carry bills have been introduced, cable interests want to fend them off before they see light of day. “It’s more of an offensive mode than a defensive mode,” McEnroe said.
Group of cable network executives included senior officials of such major players as A&E, AMC, Comedy Central, Court V, C- SPAN, Discovery Communications, E! Networks, HBO, Lifetime, Starz Encore, Weather Channel. “We consider this to be an oxygen issue for programmers,” Davatzes said, vowing return trip to lobby 3 new FCC commissioners. But conspicuous by their absence were officials of most cable networks backed by AOL Time Warner, Disney, NBC and Viacom, all of which own broadcast networks as well. Of major broadcasters, only Fox had representative contingent with 2 senior officials from Fox Family Channel.