FCC Chairwoman Jessica Rosenworcel is floating a proposal that would require rebates to multichannel subscribers in the event of a blackout or broadcast stations.
Her proposal comes after the recent high-profile standoff between The Walt Disney Co. and Charter Communications, which left ABC-owned stations, ESPN and other cable networks dark for about a week and a half on Spectrum cable systems.
If adopted by the five-member commission, the proposal would then go to public comment period before a final vote. It would “require cable and satellite providers to issue rebates to subscribers in the event of a blackout doe to a failure to reach a retransmission consent agreement with broadcast” station group owners.
Rosenworcel also outlined a proposal that would require cable and satellite companies to notify the FCC via an online public portal when there is a “blackout of 24 hours or more of broadcast programming due to a failure to reach a retransmission consent agreement.”
In a statement, Rosenworcel said, “Enough with the blackouts. When consumers with traditional cable and satellite service turn on the screen, they should get what they pay for. It’s not right when big companies battle it out and leave viewers without the ability to watch the local news, their favorite show, or the big game. If the screen stays dark, they deserve a refund.”
Broadcasters and multichannel lobbying groups have long engaged in lobbying battles over the rules surrounding retransmission consent negotiations, which have frustrated lawmakers when stations in their own districts go dark. Stations have wanted to protect their leverage and a valuable revenue stream, while cable and satellite companies have pushed for changes to the process. Rep. Anna Eshoo (D-CA) and House Majority Leader Steve Scalise (R-LA) have long backed a bill that would ensure that broadcast channels be carried during negotiations, but the legislation has not advanced. The issue came up again last month at a House hearing, in which lawmakers lamented the Disney-Charter standoff.
The current FCC rules require that TV stations and cable and satellite companies negotiate carriage agreements in “good faith.”
The 10-day Disney-Charter standoff ended with an agreement in which carriage was restored on Charter’s Spectrum systems for 19 cable networks and stations, including ESPN, FX and ABC stations in major markets, but it left behind eight other channels.
The deal also furnished the the ad-supported tier of Disney+ to Spectrum TV Select subscribers, as part of a wholesale arrangement. It also provided that ESPN+ be made available to Spectrum TV Select Plus subscribers.
