Retransmission Fees

[nelson61]

We all know of or have experienced the blackouts caused by retransmission fees disputes.

Maybe it is time for the FCC to get some fresh ideas on how to regulate those stations that were given "free" rights to spectrum for over the air broadcasting.

A similar dispute has been rolling through the regulatory and court system of Mexico for the last 10 years or so.

Their congress took action last year and changed the rules for the over the air carriers.

The two major broadcasters (with 4 national over the air channels) can no longer bundle their over the air stations into a larger package with fees nor charge for satellite companies for retransmission rights for the free to air stations.

Charlie and his Dish Mexico partners appear to be the principle beneficiary of the new rules.

http://www.bloomberg.com/news/2014-...s-with-pena-nieto-s-push-for-competition.html

 

[Tampa8]

That's the main complaint those of us following what is going on have. They should not be able to charge the Cable/Satellite companies any money. (In return, the carriers should only charge the overhead to provide them, as it appears the satellite carriers do now)
Oddly that could solve the Aereo issue. Lump them with the other carriers. They would simply go out of business.

 

[Tampa8]

Nice catch on that article too...

 

[sam_gordon]

Broadcasters aren't getting free spectrum anymore than you are getting a free house.

 

[Laddyboy]

Broadcasters aren't getting free spectrum anymore than you are getting a free house.

So how much is the typical FCC licensing/regulatory fee?

 

[Tampa8]

It isn't so much they are or are not paying for the spectrum, it's the exclusive right to use it, and to decide what affiliate I can watch. But more than that, the deal still is they are to provide a free OTA signal. Leaving Aereo out of it for a moment, the relation between Cable/Satellite and the Affiliates is symbiotic. Neither should be charging us, with the exception of Satellite covering the cost of getting it to us, as I believe what we pay now probably does. As soon as the affiliates were allowed to hold the carriers hostage, it should have also been that there has to be competition, probably in the form of allowing us to get whatever affiliate we want.

 

[sam_gordon]

So how much is the typical FCC licensing/regulatory fee?

I honestly don't know. I do know there is a yearly fee though.

 

[Tampa8]

This is the Government we are talking about. I have no doubt you are correct, there are fees!

 

[sam_gordon]

This is the Government we are talking about. I have no doubt you are correct, there are fees!

But that doesn't stop folks from making the claim that locals are using the airwaves for "free".

Going back to your suggestion about satellite charging enough to cover their costs... how do you determine that? I'm guessing satcos pay different amounts for rent/electricity/fiber usage at each pick up location. And what happens when their capital expenditures are paid off? Should the cost to subscribers drop?

 

[david_jr]

I am not a fan of government intervention, however in this case, the government is already neck deep. The FCC should come up with a "fair" fee structure for retransmission rather than having channels removed every time the carrier is "held up" for a new agreement. It is not like the carrier can take it's business elsewhere so it's not like it's an open market to start with. They either pay for the channels or don't, and can't import others, so yes they are "held up". It seems that some fair fee could be determined rather than using the Service Station from Vacation Movie (4 bald tires and a tow) method of "how much you got?" to determine the asking price for retransmission.

 

[jrbdmb]

I am not a fan of government intervention, however in this case, the government is already neck deep. The FCC should come up with a "fair" fee structure for retransmission rather than having channels removed every time the carrier is "held up" for a new agreement. It is not like the carrier can take it's business elsewhere so it's not like it's an open market to start with. They either pay for the channels or don't, and can't import others, so yes they are "held up". It seems that some fair fee could be determined rather than using the Service Station from Vacation Movie (4 bald tires and a tow) method of "how much you got?" to determine the asking price for retransmission.

+1 for this. There is no doubt Dish is making money on locals (or at least they would lose a lot of money if they dropped them). The locals should get a cut of that. There should be a set fee for local retransmission mandated by the FCC.

 

[osu1991]

I honestly don't know. I do know there is a yearly fee though.

Federal Communications Commission

FCC 13-74

Combined UHF/VHF Digital Television Fee
(Based on Figures from Attachment A1, Allocation % Same as in Prior Years)

FY12 Fee Revenue

Digital Television Markets 1-10
131 stations
$5,685,446
$43,400 avg

Digital Television Markets 11-25
129
$5,359,471
$41,550

Digital Television Markets 26-50
174
$4,526,425
$26,025

Digital Television Markets 51-100
286
$4,174,475
$14,600

Digital Television Remaining Markets
387
$1,666,092
$4,300

 

[Laddyboy]

Federal Communications Commission

FCC 13-74

Combined UHF/VHF Digital Television Fee
(Based on Figures from Attachment A1, Allocation % Same as in Prior Years)

FY12 Fee Revenue

Digital Television Markets 1-10
131 stations
$5,685,446
$43,400 avg

Digital Television Markets 11-25
129
$5,359,471
$41,550

Digital Television Markets 26-50
174
$4,526,425
$26,025

Digital Television Markets 51-100
286
$4,174,475
$14,600

Digital Television Remaining Markets
387
$1,666,092
$4,300

Those are laughably small given what accrues to a station.

 

[nelson61]

But that doesn't stop folks from making the claim that locals are using the airwaves for

Dish wrote off 50 million or so for their 148w license when they lost it for not having it in use.

How much does your over the air station pay?. Not even enough to cover fcc administrative costs.

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