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FCC Finally Closes 'Terrestrial Loophole'
MSG HD, SportsNet Philadelphia fans rejoice...

Satellite and telcoTV providers have long been annoyed with the fact that some cable companies withhold access to cable-company owned regional sports channels. In New York, Cablevision withholds access to the channel from competitors like U-Verse, Dish and FiOSTV in order to prevent sports fans from migrating. In Philadelphia, Comcast does the same thing with their SportsNet Philadephia channel, and by proxy, Philly has some of the lowest satellite TV subscription rates in the nation.

Under Federal law, cable companies are required to lease channels they own to competitors at "reasonable" rates. But sloppy wording in the law has been manipulated by cable industry lawyers to exempt channels delivered via terrestrial ground lines and not satellite feeds. Last year AT&T and Verizon lobbyists really began pushing the FCC to put an end to it, even going so far as to use your complaints in our forums as ammunition in filings.

When AT&T and Verizon wants something, the FCC usually marches quickly toward that goal -- and fortunately in this instance that goal is also good for TV viewers. Today the FCC issued an order (pdf) that should ultimately put an end to such practices among cable carriers by finally closing the "terrestrial loophole." The order was passed by a vote of 4 to 1, the one dissension coming from Commissioner Robert McDowell, who issued a five page statement (pdf) arguing that the Communications Act doesn't give the FCC authority to make such changes.

Verizon, who like AT&T loathes regulatory involvement in the sector unless it in some way helps their bottom line, quickly issued a statement that called the ruling a "big time victory" for sports fans. Judging from comments in our forums, sports fans couldn't agree more. As you can imagine, Cablevision was less enthusiastic about the ruling, but in a statement at least praised the FCC for developing a formal complaint process for withheld channel complaints.
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guppy_fish
Premium Member
join:2003-12-09
Palm Harbor, FL

guppy_fish

Premium Member

Karl, you might want to read this

Karl, check this out The Dolans response which basicaly says pissoff FCC

www.tvpredictions.com/fcc012010.htm

Update: Cablevision released the following statement this afternoon:

"While we find the legal basis for the decision unfounded, we are pleased that the FCC recognized the value of Cablevision’s local programming strategy and investments. Verizon and AT&T will not receive an FCC bailout that will allow them to capture News 12, MSG Varsity and other programming that we have developed for our customers. We are also pleased that despite the phone companies' overwhelming lobbying effort, the FCC has ensured a complaint process. If the phone companies complain that they are unable to compete, we are confident that we can prove that it is for a variety of reasons, none of which have to do with HD sports programming. Verizon and AT&T do not need a regulatory bailout in order to compete."

fifty nine
join:2002-09-25
Sussex, NJ

fifty nine

Member

Re: Karl, you might want to read this

I think this is far from over. The FCC has proven time and again that they are toothless tigers.

And Cablevision loves nothing better than a fight.

FFH5
Premium Member
join:2002-03-03
Tavistock NJ

FFH5

Premium Member

Re: Karl, you might want to read this

said by fifty nine:

I think this is far from over. The FCC has proven time and again that they are toothless tigers.

And Cablevision loves nothing better than a fight.
Didn't hear from Comcast yet on this. But they withhold Philly basketball, baseball, & hockey from DirecTV and Dish. I suspect we will see a huge delay action by cable at the FCC as complaints are lodged. And then off to the Federal District Court in DC where the FCC will likely lose once again.

fifty nine
join:2002-09-25
Sussex, NJ

fifty nine

Member

Re: Karl, you might want to read this

I suspect you are correct.
Joe12345678
join:2003-07-22
Des Plaines, IL

Joe12345678 to FFH5

Member

to FFH5
said by FFH5:

said by fifty nine:

I think this is far from over. The FCC has proven time and again that they are toothless tigers.

And Cablevision loves nothing better than a fight.
Didn't hear from Comcast yet on this. But they withhold Philly basketball, baseball, & hockey from DirecTV and Dish. I suspect we will see a huge delay action by cable at the FCC as complaints are lodged. And then off to the Federal District Court in DC where the FCC will likely lose once again.
But comcast also wants the NBC / cocmast deal to pass and playing hard ball may kill it or force then offer it even if this fcc rule dies.

The question is how bad do they want the deal to pass?

FFH5
Premium Member
join:2002-03-03
Tavistock NJ

FFH5

Premium Member

Re: Karl, you might want to read this

said by Joe12345678:
said by FFH5:
said by fifty nine:

I think this is far from over. The FCC has proven time and again that they are toothless tigers.

And Cablevision loves nothing better than a fight.
Didn't hear from Comcast yet on this. But they withhold Philly basketball, baseball, & hockey from DirecTV and Dish. I suspect we will see a huge delay action by cable at the FCC as complaints are lodged. And then off to the Federal District Court in DC where the FCC will likely lose once again.
But comcast also wants the NBC / cocmast deal to pass and playing hard ball may kill it or force then offer it even if this fcc rule dies.

The question is how bad do they want the deal to pass?
Good point. Politics may make them negotiate a deal.

DaveDude
No Fear
join:1999-09-01
New Jersey

DaveDude to guppy_fish

Member

to guppy_fish
What about DRM and such, wouldn't a law forcing sharing affect DRM, and the RIAA rules about sharing media ? I would think this would be a collision of rules. You have total rights to your media, but now you have to share ?????

HarleyYac
Lee
Premium Member
join:2001-10-13
Allendale, NJ

HarleyYac

Premium Member

Appeals???

Hi,
I guess another year if there is an appeal pocess.

Thank god the Knicks suck. I would like to see the Devils in HD

fifty nine
join:2002-09-25
Sussex, NJ

fifty nine

Member

Re: Appeals???

You can see the Devils in HD. Subscribe to Cable.

HarleyYac
Lee
Premium Member
join:2001-10-13
Allendale, NJ

HarleyYac

Premium Member

Re: Appeals???

Again CORRECT ! Not on Fios CV yes. Comcast, TW , Sorry they do not compete head to head Only Fios ATT and DTV and maybe Dish
Lee

pnh102
Reptiles Are Cuddly And Pretty
Premium Member
join:2002-05-02
Mount Airy, MD

1 recommendation

pnh102

Premium Member

Expropriation

Given that the Supreme Court legalized the forcible transfer of private property from one private entity to another through the misguided Kelo decision, I see that this ruling might actually have a chance of being upheld once it gets to the Supreme Court.
ajwees41
Premium Member
join:2002-05-10
Omaha, NE

1 recommendation

ajwees41

Premium Member

no sunday ticket no deal

if satelites want theese they should give up nfl sunday ticket xclusive rights

FFH5
Premium Member
join:2002-03-03
Tavistock NJ

FFH5

Premium Member

Re: no sunday ticket no deal

said by ajwees41:

if satelites want theese they should give up nfl sunday ticket xclusive rights
I agree. What is good for the goose, should be good for the gander as well.

fifty nine
join:2002-09-25
Sussex, NJ

fifty nine

Member

Re: no sunday ticket no deal

Of course the FCC has never applied the rules equally when comes to cable and satellite companies. Take the CableCARD mandate for example.

KrK
Heavy Artillery For The Little Guy
Premium Member
join:2000-01-17
Tulsa, OK
Netgear WNDR3700v2
Zoom 5341J

KrK to FFH5

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to FFH5
said by FFH5:

I agree. What is good for the goose, should be good for the gander as well.
Agreed. These "Exclusive" agreements shaft everyone....

1) The fans who can't get it period
and 2) The fans who have to pay mega $$$$ to cover the subscription price because their provider paid zillions to get exclusive rights. Better it be open to everyone, and then it will be accessible by all and a lot more affordable!

fifty nine
join:2002-09-25
Sussex, NJ

fifty nine

Member

Re: no sunday ticket no deal

said by KrK:

2) The fans who have to pay mega $$$$ to cover the subscription price because their provider paid zillions to get exclusive rights. Better it be open to everyone, and then it will be accessible by all and a lot more affordable!
YEah... like screw the evil cable and satellite companies.

Make a PROFIT? I mean, like...what were they thinking?

KrK
Heavy Artillery For The Little Guy
Premium Member
join:2000-01-17
Tulsa, OK
Netgear WNDR3700v2
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KrK

Premium Member

Re: no sunday ticket no deal

Talk about missing the point.

DirecTV in their zest to be the only NFL ticket provider, will pay any price--- outbid everyone else-- to get the exclusive rights. (Over 700 million a year!)

So they over pay massively... and it doesn't matter, because then they turn around and jack up the sub price to cover their insane bid!

Ask yourself, if you wanted to make money, which would YOU prefer:

2.5 million subscribers, all paying $300 for Sunday Ticket, or 25 million subscribers all paying $50 for Sunday Ticket?

Better it be available on all cable Satellite and IPTV, Fiber, etc systems. Better for everyone, except maybe DirecTV.

fifty nine
join:2002-09-25
Sussex, NJ

1 edit

fifty nine

Member

Re: no sunday ticket no deal

said by KrK:

Talk about missing the point.

DirecTV in their zest to be the only NFL ticket provider, will pay any price--- outbid everyone else-- to get the exclusive rights. (Over 700 million a year!)

So they over pay massively... and it doesn't matter, because then they turn around and jack up the sub price to cover their insane bid!
And this is the Government's concern because? Nobody's putting a gun to your head and saying you have to have DirecTV, Dish or even a TV set.
Ask yourself, if you wanted to make money, which would YOU prefer:

2.5 million subscribers, all paying $300 for Sunday Ticket, or 25 million subscribers all paying $50 for Sunday Ticket?

Better it be available on all cable Satellite and IPTV, Fiber, etc systems. Better for everyone, except maybe DirecTV.
The Government shouldn't be in the business of making sure that businesses survive or fail. If they make a dumb move, let them fail! That's how capitalism works. It shouldn't be up to some bureaucrat, let the market work.

AVD
Respice, Adspice, Prospice
Premium Member
join:2003-02-06
Onion, NJ

AVD

Premium Member

Re: no sunday ticket no deal

until there are three cable providers in my neighborhood, it is my concern.

KrK
Heavy Artillery For The Little Guy
Premium Member
join:2000-01-17
Tulsa, OK

KrK to fifty nine

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to fifty nine
It's because of the Government that this type of "business" occurs at all.
UofMiamiGrad
Premium Member
join:2001-02-03
Syosset, NY

UofMiamiGrad to ajwees41

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to ajwees41
said by ajwees41:

if satelites want theese they should give up nfl sunday ticket xclusive rights
How about the cable companies under InDemand outbid Directv for it when it comes up for renewal. They failed to do so in the past, yet people on this forum continue to use the NFLST as an example for what cable has been doing with RSNs as an analogy. A bad one at that.
ajwees41
Premium Member
join:2002-05-10
Omaha, NE

ajwees41

Premium Member

Re: no sunday ticket no deal

said by UofMiamiGrad:

said by ajwees41:

if satelites want theese they should give up nfl sunday ticket xclusive rights
How about the cable companies under InDemand outbid Directv for it when it comes up for renewal. They failed to do so in the past, yet people on this forum continue to use the NFLST as an example for what cable has been doing with RSNs as an analogy. A bad one at that.
the rsn's are avalable to satelite customers with certain packages.
Joe12345678
join:2003-07-22
Des Plaines, IL

Joe12345678 to UofMiamiGrad

Member

to UofMiamiGrad
said by UofMiamiGrad:

said by ajwees41:

if satelites want theese they should give up nfl sunday ticket xclusive rights
How about the cable companies under InDemand outbid Directv for it when it comes up for renewal. They failed to do so in the past, yet people on this forum continue to use the NFLST as an example for what cable has been doing with RSNs as an analogy. A bad one at that.
InDemand can only do 2 HD channels at ones and not all systems even have 1 InDemand HD channel. also some system don't even have the room for NHL CI , MLB over lap. and do want NFL ST in SD at 15:1 QAM?

castsucks
@sbcglobal.net

castsucks to UofMiamiGrad

Anon

to UofMiamiGrad
said by UofMiamiGrad:

said by ajwees41:

if satelites want theese they should give up nfl sunday ticket xclusive rights
How about the cable companies under InDemand outbid Directv for it when it comes up for renewal. They failed to do so in the past, yet people on this forum continue to use the NFLST as an example for what cable has been doing with RSNs as an analogy. A bad one at that.
The NFL still will want for people who can't get cable / there cable co does not have Indemand to be able to get it?

also the NFL wants all the games in HD and IDdemand will have a hard time doing that.

HarleyYac
Lee
Premium Member
join:2001-10-13
Allendale, NJ

HarleyYac to ajwees41

Premium Member

to ajwees41
Different Animal. CV Refused to negotiate DTV Won the rights via $$$ for exclusive rights.
Lee

nightstick6
@phila.gov

nightstick6 to ajwees41

Anon

to ajwees41
said by ajwees41:

if satelites want theese they should give up nfl sunday ticket xclusive rights
Why?

The NFL is not owned by DirecTV, so there are competitive forces that come into play for the programming (e.g. bidding).

The terrestrial loophole eliminates competitive pressures BY DESIGN. The Philadelphia Flyers, for example, are owned by Comcast. So their exclusive programming rights would continue to be awarded to Comcast FOREVER with the loophole in place.

The NFL, on the other hand, will do what is best for its bottom line when it comes to programming (including Sunday Ticket), and that means providing its programming to the highest bidder(s).


HarleyYac
Lee
Premium Member
join:2001-10-13
Allendale, NJ

HarleyYac

Premium Member

Re: no sunday ticket no deal

Correct.. That wasn't by design. However if your a Flyers fan and not on Comcast you are screwed. If your a Rangers Fan, Devils Knicks you are screwed unless you subscribe to CV.
As for NFL you can watch your area team OTA or on any service. NFL has a contract with DTV (High bidder) to watch other out of market teams. You can watch SD but the BS Terrestrial loophole circumvented that. NO SOUP or HD FOR YOU!
Bottom line if you bitch enough.. ie I wrote a letter to the FCC about this. They listen. BTW I am sure it was the lobbyists and not me that got it done.

Lee
robjlevin
join:2002-10-30
Medford, NJ

robjlevin to ajwees41

Member

to ajwees41
said by ajwees41:

if satelites want theese they should give up nfl sunday ticket xclusive rights
Totally unrelated! Sunday Ticket is not owned by DirecTV. It was purchased by DirecTV from the NFL as the highest bidder. It also does nothing to take away from your LOCAL programming.

This ruling relates only to local "must have" programming owned by cable systems that refuse to sell to competitors.

If you have a beef with Sunday Ticket, take it up with the NFL.

HarleyYac
Lee
Premium Member
join:2001-10-13
Allendale, NJ

HarleyYac

Premium Member

Re: no sunday ticket no deal

Thx Rob.. Here is a quote that may help the ones that are having difficultly grasping the issue.

"Cohen's of course conflating Sunday Ticket with regional sports programming. Locals in Philly have no way of seeing many local sports games unless they sign up with Comcast. Local NFL fans still get to see their teams play on national networks if they don't subscribe to the Sunday Ticket out of market package. While many cable users hate DirecTV's exclusive deal with the NFL, and it is the bane of NFL fans and cable execs everywhere, the scenarios are different. Apparently Comcast's hoping that if they lose an FCC appeal, they can at least gain access to DirecTV's cash cow via conflation, but that seems unlikely.
robjlevin
join:2002-10-30
Medford, NJ

robjlevin

Member

Re: no sunday ticket no deal

said by HarleyYac:

. Apparently Comcast's hoping that if they lose an FCC appeal, they can at least gain access to DirecTV's cash cow via conflation, but that seems unlikely.
Worth noting there is that the only reason it's a cash cow is because it's an exclusive. And if I had to guess, I'd say it's actually a money loser on the surface.

What it does, though, is keep subscribers from leaving because it's so important to them. In short, it's a loss leader.

If it weren't an exclusive, it wouldn't be worth anywhere near as much to anyone. DTV would likely lose hundreds of thousands of subscribers without it.

HarleyYac
Lee
Premium Member
join:2001-10-13
Allendale, NJ

HarleyYac

Premium Member

Re: no sunday ticket no deal

I can not imagine at least this point in time a battle for "NFL Sunday ticket" even if the agreement ended today.
I wonder what the cost of the agreement was. Surely they all have the money to bid. I would not pay for it, it FIOS had it
Lee
robjlevin
join:2002-10-30
Medford, NJ

robjlevin

Member

Re: no sunday ticket no deal

DTV pays somewhere between $700 and $800 million a year. The most unique aspect of this contract is that unlike all other programming contracts this is a fixed cost whereas the rest of them are per subscriber.

HarleyYac
Lee
Premium Member
join:2001-10-13
Allendale, NJ

HarleyYac

Premium Member

Re: no sunday ticket no deal

Very interesting

Travelfan1
RIP Analog Go Digital
join:2005-08-23
Woodbridge, NJ

Travelfan1 to ajwees41

Member

to ajwees41
said by ajwees41:

if satelites want theese they should give up nfl sunday ticket xclusive rights
I read somewhere in the internet a more proper analogy for the Sunday Ticket.

Sunday ticket is like the rights to the Summer and Winter Olympic games. NBC outbid Fox and ESPN and got the exclusive rights to Summer and Winter Olympic games. NFL Sunday Ticket, like the Olympic games rights, were out for bids, it just so happen that Directv outbid cable.

Now, one could argue that, say, Knicks put their rights up for sale to everyone and, say, Cablevision + TWC + Comcast outbid the satellite cos and Telecoms and got the rights. But that's not the case right now, the case right now is the owner of MSG and MSG+, who currently owns the rights to Knicks games, is withholding MSG and MSG+ in HD its competitors. The analogy here would be, going forward, Comcast withholding NBC from teleco and satellite.
WhatNow
Premium Member
join:2009-05-06
Charlotte, NC

WhatNow

Premium Member

Turn about would be fair play

The TelcoTV companies should get exclusive rights and then let the the other parties cry in their beer.

The sports leagues need to be careful they could lose the support of the cities they are located in if the kids do not grow up watching and supporting a team because they do not get service from a TV service.

Z80A
Premium Member
join:2009-11-23

1 edit

Z80A

Premium Member

FCC brings this upon itself

By banning cable operators from too much horizontal expansion (like we saw with Comcast hitting their ownership limit) these operators then vertically integrate to expand. But then they get beat on by regulators when they don't offer their content to competitors.

VZ and AT&T are rolling in $$$$. There is nothing stopping Verizon from creating a Verizon Sports Net and regional sport networks and bidding against CV or Comcast or DirecTV or anyone else for sports broadcast contracts. I'm sure sports leagues would love to see such a bidding war.

•••••••••••••••••

dvd536
as Mr. Pink as they come
Premium Member
join:2001-04-27
Phoenix, AZ

dvd536

Premium Member

Whats good for the goose. . .

So when can I get NFL sunday ticket on cable?
same thing pretty much.

SpaethCo
Digital Plumber
MVM
join:2001-04-21
Minneapolis, MN

SpaethCo

MVM

Re: Whats good for the goose. . .

said by dvd536:

So when can I get NFL sunday ticket on cable?
same thing pretty much.
It's different because it's in-market vs out-of-market.

If you lived in Philadelphia and you were a Flyers fan, the only way you could watch your local team is if you subscribed to Comcast. Considering these teams are supported in some capacity by public funding (ie, publicly funded stadiums / operating tax breaks) it is exceedingly lame to not be able to see your local team unless you subscribe to one specific service.

The out-of-market sports packages packages are a bit different in that there is no natural way to get that programming when you live outside of the broadcast area. In the case of the Sunday Ticket package, it's the NFL that wants the Sunday Ticket package to be limited so that most people will watch their local team, thus increasing the value of advertising time for local ads.

roymustang
Premium Member
join:2002-01-12
Cincinnati, OH

roymustang

Premium Member

I'm sure the FCC will fold again but it's

Time to pry these companies apart with a crowbar. End user providers should not have their fingers in the content pie.
jmcmanama8
join:2010-01-17
Burlington, KY

jmcmanama8

Member

ala carte

Still waiting for the ala carte programing the the FCC promised. I have DTV and dont need 40% of the channels they provide. Dont need 20 channels of religous programing, and various other "filler" channels. Maybe this will finally make cable/sat more affordable.
Galvan316
join:2009-05-19
Plainfield, IL

Galvan316

Member

MLB Network

I just want MLB Network on U-Verse.

Let me know when that happens
valleygreen2
join:2010-01-23
Philadelphia, PA

valleygreen2

Member

terrestrial loophole

As a Philadelphia Sports fan I cannot watch Phillies Baseball on my provider of choice Directv. Yet, my tax dollars helped build the building they play in and support tax breaks for the team. Comcast programming must be really bad for them to be so worried that they will lose so many subs if the satellite providers can broadcast the games. Time to free the Philadelphia sports fans.
Kmpoaquests
join:2003-12-07
Westbury, NY

Kmpoaquests

Member

Oh Boo-hoo

all the whiners need to stfu seriously if you don't have msg then go get CV if not go get the pass from nba.com

1) Cablevision owns the knicks
2) Cablevision owns Madison Square Garden
3) Cablevision owns MSG & MSG HD and other channels

who says they have to share anything with anyone else ?

Let ATT n Verizon go make their own network instead of crying to mommy and daddy.