Cable Interests, Indie Programmers at Odds Over Program Carriage Dispute Rules Changes

Cable distributor interests and independent programmers are on opposite sides on the FCC's proposed amendments to program carriage dispute rules, in docket 20-70 comments posted Tuesday. An NPRM and Further NPRM were adopted in March (see 2003310066). The proposed program carriage and good faith negotiation complaint procedural rules changes would give more certainty to parties and a more consistent framework to adjudications, NCTA said. Clarifying statute of limitations language for program access, open video system and good faith negotiation complaints will encourage timely dispute resolution, it said. Having administrative law judge decisions in MVPD cases follow the same guidelines as other ALJ cases, such as when they take effect and automatic stays, will give due weight to the First Amendment implications of the decisions, it said. Also backing the FCC was Comcast (see here). AMC Networks said it's still important indie programmers get fair and nondiscriminatory carriage opportunities compared with competitors that may be affiliated with MVPDs. The programmer said the statute of limitations language should include a provision allowing complaints to be filed within a year of the content provider learning a distributor exercised a contractual right in a discriminatory manner. It said ALJ decision rules should include a six-month timeline for FCC review of those decisions once it's been appealed. And it urged a prohibition on retaliation against program carriage complainants. Ride TV, Newsmax, HDNet, KSE Outdoor Sportsman Group and WeatherNation TV said the current program carriage framework is woeful protection when dealing with MVPDs with all the leverage, and the FNPRM would curtail that protection further. Instead, promulgate good faith rules for MVPDs and programmers that prevent use of most-favored nation clauses, they asked. The statute of instantiations language in the FNPRM ignores that pay TV providers generally don't decline or refuse carriage proposals but never answer until indies acquiesce to one-sided terms, they said. Program carriage rules "have ... lost almost all of their deterrent effect," with an MVPD's claimed business justification becoming a major obstacle at the prima facie stage, said beIN Sports. It said the FCC needs to codify an anti-retaliation provision, good faith negotiation obligations and the automatic production of certain documents upon making a prima facie case, and clarify that the defendant holds the burden of proof and production after the complainant makes a prima facie case. It opposed adopting the ALJ proposal, saying immediate enforcement of a favorable ALJ decision is needed to avoid economic and reputational harm of not being carried.