FCC launches review of cable-broadcaster retransmission deals

fccThe recent row between Walt Disney Co’s ABC Network and Cablevision Systems Corp has prompted the Federal Communications Commission (FCC) to launch a review into the manner in which retransmission deals are negotiated by broadcasters and cable companies.

The review, launched Friday, marks yet another move by the FCC seeks public opinion about whether the agency should mull over so-called “retransmission consent,” in an attempt to avert fee-related disputes from causing the periodic blackouts of popular channels.

The FCC’s review decision – which does not necessarily imply that a change in rules in on the cards – has come in the wake of the Oscars night episode earlier this month, when ABC blocked its signal from Cablevision. Earlier too, on the New Year’s Eve a similar dispute was reported between Time Warner Cable Inc and News Corp’s Fox network.

The recent ABC-Cablevision spat essentially underscores the escalating tension over the amount of payments that TV distributors should make so as to get the right to carry the free-to-air broadcast signals of ABC, CBS Corp, NBC, and Fox.

In its Friday release, the FCC – which has announced April 18 as the deadline for submitting comments – noted that over one dozen entities, including companies and public interest groups, have suggested reforms to rules, for working out a proper dispute resolution mechanism.