The Federal Communications Commission (FCC) is proposing two new rules designed to address the issue of channel blackouts. These proposals came on the heels of a recent conflict that left countless Spectrum subscribers without access to Disney-owned channels like ABC and ESPN.
FCC Addressing the Issue of Channel Blackouts
Addressing a prominent issue raised during the recent Disney-Charter Communications dispute, FCC Chairwoman Jessica Rosenworcel introduced a proposal that could mandate refunds for multichannel subscribers in situations involving station blackouts.
The dispute between Disney and Charter Communications resulted in Disney-owned channels, including ABC and ESPN, going dark for over a week on Spectrum cable systems. If the commission embraces Rosenworcel's proposal, it will enter a public comment phase before reaching a final decision.
The Verge reported that this initiative aims to compel cable and satellite providers to provide refunds to subscribers in case of a blackout resulting from the failure to secure a retransmission consent agreement with broadcast station group owners.
Rosenworcel has also presented another proposal that would mandate cable and satellite providers to use an online public portal to inform the FCC of any blackout lasting 24 hours or more resulting from the failure to reach a retransmission consent agreement.
She expressed concern about situations wherein large corporations engage in disputes that prevent viewers from accessing their favorite shows, local news, or major sporting events. She believes consumers should be entitled to a refund if the screen remains blank.
Recurring Problem
The complex and long-standing lobbying battles between broadcasters, multichannel lobbying groups, and lawmakers have revolved around retransmission consent negotiations. Deadline reported that such disputes have often left lawmakers frustrated when stations in their districts experience blackouts.
While stations aim to protect their leverage and revenue, cable and satellite companies have advocated process changes. Rep. Anna Eshoo and House Majority Leader Steve Scalise support legislation to ensure that broadcast channels are carried during negotiations, but this bill has yet to progress.
The issue was revisited in a recent House hearing, where lawmakers expressed their concerns regarding the Disney-Charter dispute. Under the existing FCC regulations, television stations, cable, and satellite providers are obligated to engage in carriage agreement negotiations conducted in "good faith."
The recent 10-day standoff between Disney and Charter concluded with an agreement to restore carriage on Charter's Spectrum systems for 19 cable networks and stations.
That included prominent channels such as ESPN, FX, and ABC stations in major markets. However, the resolution of this dispute still left eight other channels unresolved.
In addition to the resolution, the agreement included provisions granting Spectrum TV Select subscribers access to the ad-supported tier of Disney+ through a wholesale arrangement. Moreover, it allowed Spectrum TV Select Plus subscribers to access ESPN+.
When contacted, Variety reported that a representative from NCTA- The Internet & Television Association, the lobbying group representing major cable providers, declined to offer a statement. The National Association of Broadcasters also refrained from commenting.
Recent developments have seen Democrats securing a majority on the five-person commission, thanks to the confirmation of Anna Gomez as the fifth FCC commissioner.
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