Here's a generic response I received to an email from the GM of KATU.
KATU Viewer,
Thank you for making us aware of your concerns, I understand your frustration.
It's important to know that while the specific terms of our negotiation with Dish Network cannot be divulged, we are not asking for anything more than many much less significantly viewed cable networks are receiving.
The increase that is being reported has been grossly exaggerated and is comparable to other broadcast stations. KATU has been negotiating in good faith with DISH for a new retransmission agreement. We have asked for an extension to keep KATU on DISH while negotiation but we were turned down. We are asking for nothing different than other broadcast companies and cable networks. KATU produces quality news and entertainment programming, at our own expense, which DISH in turn, charges you an additional fee. We will continue to work diligently to reach an agreement, our hope is for a rapid resolution
John N Tamerlano
VP / General Manager
KATU TV
_______________________________
Here is my response to him:
Dear Mr. Tamerlano, Thank you for your response and explanation
I think you will discover that Satellite viewers on average are more knowledgeable about how the industry works than your average viewer. Here is why I have a problem with your position.
To people who have always had cable or satellite there is no difference between an over-the-air (OTA) broadcast channel and cable offerings. However, in both the business and regulatory environments, the difference between OTA television and cable matters. The business models are different, the ad revenue streams are different, the content regulation is different. Whether you run a local TV station or a cable system, a broadcast network or a cable net, you live with these differences everyday. One of the big differences it that a broadcast network is obligated to provide a free signal to viewers within their DMA.
To most viewers, those differences are invisible. They cruise around the channel lineup, probably not paying any attention when they’re tuned to a cable channel and when they’re looking at a broadcast station. They may be vaguely aware the rules for swearing vary between basic cable and networks like NBC, CBS, ABC, Fox, or the CW – although, as broadcast standards have changed over the years, the differences aren’t as stark as they used to be. Even if they see that distinction, they may not know this is because broadcasters are granted use of the public airwaves, while cable programmers are not.
Another example: If a cable programmer – Animal Planet, Comedy Central, Turner Classic Movies – wants to be carried by a satellite/cable operator, then that network has to make its pitch. It has to demonstrate the value it will deliver and then an agreement is negotiated. An OTA broadcaster can choose between Must Carry or Retransmission Consent status in order to gain carriage, that precludes real free market negotiation. For example, if negotiations between a satellite/cable operator and a broadcaster go badly, that operator can’t turn to an out-of-market broadcaster that carried the same programming.
You can argue that the average viewer doesn’t need to know the difference. They watch what they want to watch and they don’t care whether the programming is cable or broadcast. But you cannot ignore the impact of these differences. They can be seen all the time. The fees you propose discriminate against satellite/cable viewers. Why should a satellite or cable subscriber be treated differently than a viewer that receives your programming via off-air antenna? If you want to be a cable station then give up your broadcast license, exclusivity to ABC programming and go compete with the other cable channels, otherwise stop trying to have it both ways. Finally, if you want to provide me with proof that the fees I pay for receiving my local stations via satellite do more than cover the expense of providing them, I'll be more sympathetic to your position.
Thank you