Cable Groups Will Sue Over the End of the TV Station Ownership Cap
Cable industry lobby groups have notified the Federal Communications Commission that they will sue to block the agency's repeal of the National Television Ownership Rule, which limits the number of broadcast TV stations a single company may own.
Their stated concern is leverage. Retransmission fees are what TV providers pay broadcasters for the right to carry their stations, and the cable groups argue that larger station groups will be in a position to demand more of that money once the cap is gone. That dispute now moves from the commission to the courts.
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The groups making this argument represent Comcast, Charter and other cable operators — companies that have expanded through mergers of their own. Objecting to consolidation in broadcasting while sitting inside consolidation in distribution is a position, not a principle.
The mirror is close to exact: Charter's purchase of Cox closed in August after the FCC rejected protests from advocacy groups who said the deal would create unchecked gatekeeper power over internet distribution and make it easier for the biggest cable companies to raise prices.