Cable operators, preparing for telecom and franchise law rewrites, have set rate deregulation on basic cable and equipment rates as a top legislative priority, NCTA Pres. Kyle McSlarrow said. Facing potential congressional action on national franchising later this year, the industry doesn’t need to make concessions that would harm cable operators to get what it wants, McSlarrow told us after speaking to the Media Institute in Washington.
Jonathan Make
Jonathan Make, Executive Editor, is a journalist for publications including Communications Daily. He joined the Warren Communications News staff in 2005, after covering the industry at Bloomberg. He moved to Washington in 2003 to research the Federal Communications Commission as part of a master’s degree in media and public affairs at George Washington University. He’s immediate past president of the Society of Professional Journalists local chapter. You can follow Make on Instagram, Medium and Twitter: @makejdm.
Cablevision stock has fallen amid a boardroom battle, failed takeover bid and DTV deployment behind rivals. The solution, the founding family argues, is a $5 billion deal to take the cable operator private. Cablevision’s Rainbow holdings would be spun off to existing shareholders, for an estimated total value to public shareholders of $7.9 billion. If Cablevision’s board accepts the Dolan family plan, as analysts expect, investors will get $21 per share in cash, and stock in its Rainbow Media programming unit. The shares are down about 1/2 over the past 5 years.
The FCC will consider separate cable and media ownership rules now that several courts have told the Commission to rework those regulations, agency officials said. Cable caps remanded to the FCC in 2001 and media ownership rules sent back by another court in 2003 each deal with different industries, an official said. Officials spoke to us on the condition they not be named.
Viacom’s board approved a spinoff that would separate the media and entertainment giant’s slower-growing businesses from its cable networks, including Comedy Central, MTV and Nickelodeon. The tax-free deal is expected to close by March 31, the company said in a statement. As expected (CD March 18 p10), Tom Freston will lead the cable networks and movie studios, which will keep the Viacom name.
Comcast and Time Warner’s proposed $17.6 billion purchase of most of Adelphia’s cable systems is meeting opposition from some communities, media activists and at least one rival. Concern over the buyers’ potential to stifle competition for local programming such as sports comes as the FCC seeks comment on the deal by July 5 (CD June 6 p11).
The NCTA may consider backing a national franchising standard in telecom legislation that would address regulations on how cable and telcos compete in selling bundled services. NCTA chief Kyle McSlarrow said his push for regulatory parity between phone and cable companies may share features with a Mon. proposal (CD June 7 p1) by Senate Commerce Committee Chmn. Stevens (R-Alaska).