No Exclusivity Rules Doesn't Mean Free Market Programming, Networks Say
Eliminating FCC exclusivity rules isn't deregulation, since the programming market without them isn't purely private due to the existence of compulsory licenses, CBS, Disney and NBCUniversal executives told Commissioner Ajit Pai's chief of staff, Matthew Berry, according to an ex…
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parte filing posted Wednesday in docket 10-71. The "below-market rates set by government" in those licenses also don't deter from the import of distant broadcast signals, and cable distant signal license rates don't cover network programing anyway, the networks said, saying the FCC should leave the network nonduplication and syndicated exclusivity rules alone "until there is a holistic review of the entire statutory and regulatory structure, including the compulsory licenses." The three also argued a rules repeal would mean networks likely terminating affiliation agreements with stations whose signals are being imported into distant markets, and while the network lines up a new affiliation agreement viewers would see big disruptions -- "far greater than a retransmission consent impasse" in the distribution of network programming, including over-the-air transmissions. They disputed the argument that the exclusivity rules are akin to the sports blackout rules (see 1510060055) because the latter is about duplication and access to programming is still available through other means such as over the air.