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Cablevision Pushing For Retrans Reform
And For the Right to Offer Unbundled Channels
by Karl Bode Tuesday 31-May-2011 tags: business · cable · consumers · Cablevision
Tipped by kickass69 See Profile
The last year or two has seen no shortage of disputes between broadcasters and cable companies over retransmission fee hikes, the two sides trying to pit consumers against the other side with media campaigns. Cablevision customers have seen the worst of these fights, many channels going black when the company fought with Fox last year. Users in our Cablevision forum direct our attention to the fact that Cablevision's now pushing regulators for several things, including the right to just carry select channels (instead of forced channel bundles), and the ability to publicize the rates broadcasters are trying to charge. Granted, consumer bills seem to continually increase no matter who wins these debates, though offering more standalone channels could be a push toward the a la carte future many have been clamoring for for years.

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limegrass69
Here's my Posting tag

join:2008-05-28

What's good for the goose?

Let's see if they put their money where their mouth is.

Will a Cablevision subscriber be able to pick and choose their own channel packages for true cost savings? I did not think so.

Will they allow other cable/satellite operators to pick and choose single channels among many channels that Cablevision owns? I did not think so.
bidger

join:2009-12-23
Elmira, NY
Reviews:
·RoadRunner Cable

Re: What's good for the goose?

said by limegrass69:

Let's see if they put their money where their mouth is.

Will a Cablevision subscriber be able to pick and choose their own channel packages for true cost savings? I did not think so.

Will they allow other cable/satellite operators to pick and choose single channels among many channels that Cablevision owns? I did not think so.

I'm glad that you can smell a smoke screen when it's being generated.
Skippy25

join:2000-09-13
Hazelwood, MO
Were you included in the super secret covert meetings that they spoke of this? No, then you are just speculating and have no idea how they will run the channel lineup if this comes to light.

I will speculate just the opposite and say that they would 100% give their consumers the ability to pick and choose their channels.
Mr Matt

join:2008-01-29
Eustis, FL
kudos:1
Reviews:
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TV Broadcasters forgot the roots of cable TV

The only reason that cable television technology was developed was to allow potential viewers access to television channels, in areas where due to distance or terrain were unable to receive a usable TV Signal. Although the cable industry has evolved into a giant blob, in this case I support cable. This retransmission copyright crap should be changed where the TV Stations are forced to pay cable companies to carry their signal. There are many broadcast channels that have a very small audience and waste valuable space on the cable system.

fifty nine

join:2002-09-25
Sussex, NJ
kudos:1

Re: TV Broadcasters forgot the roots of cable TV

said by Mr Matt:

This retransmission copyright crap should be changed where the TV Stations are forced to pay cable companies to carry their signal. There are many broadcast channels that have a very small audience and waste valuable space on the cable system.

Most of Cablevision's disputes have been with the big four, not independent stations. The big four are usually covered under retransmission consent where the stations and the cable companies negotiate freely and someone pays a fee. That someone is usually the cable company, because without the big four their customers would go to their competitors.

Romney2012
Defeat Obama 2012-Chg we can believe in
Premium
join:2002-03-03
USA
kudos:4

Cablevision only carry what they want has implications

While what Cablevision wants - no bundling thru regulation - sounds good, it does have some side effects. Most cable companies will not carry all the lousy channels that are bundled along with the ones people really want. That is, the sports channels; major reality TV showing channels; local news channels(without all of their extra OTA side channels); etc. And if that happens, there will be a lot less channels to watch. That may be a good thing, but it probably won't stop the big content companies from just charging more for what the people do want.

End result: same price; but with a lot less channels.
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Joe12345678

join:2003-07-22
Des Plaines, IL

Re: Cablevision only carry what they want has implications

well ESPN needs to be it own pack and disney channel, Disney XD, Disney Junior need to be in there jack as well.
Bobcat
Premium
join:2001-02-04

Re: Cablevision only carry what they want has implications

ESPN would be the first channel I'd drop. And anything with "Disney" in the name would be next.

Romney2012
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USA
kudos:4

Re: Cablevision only carry what they want has implications

said by Bobcat:

ESPN would be the first channel I'd drop. And anything with "Disney" in the name would be next.

Cablevision isn't looking to offer a la carte to their customers. It is lobbying for a la carte(de-bundling) when they are buying networks from the content conglomerates.
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dvd536
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Phoenix, AZ
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said by Romney2012:

And if that happens, there will be a lot less channels to watch.

Who cares about having all those channels if they're never watched. ala carte would allow those worthless channels to die out and with less channels on the system, providers could ease up on the compression rates!
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fifty nine

join:2002-09-25
Sussex, NJ
kudos:1

Two faced Cablevision

Cablevision opposed franchise reform in New Jersey when they realized that Verizon was breathing FiOS down their neck... they also petitioned for - and got - permission to encrypt must carry content.

They are also blocking news 12 and MSG HD from Verizon and U-Verse, in direct defiance of an FCC order.

Now they're screaming "mommy" to big Government when they can't get their way.

This is not about the consumer at all. Cablevision couldn't care less about the consumer. All they care about is more of your money in their pockets.

There is no need for any sort of reform, especially for pay only (non-OTA) channels. Cable TV is a luxury service and unless you live way out in the middle of nowhere there is always a way to get TV for free. The FCC even guarantees your right to put up an effective antenna. Nothing short of historic preservation or the laws of physics can stop you from getting FREE TV. I live 50 miles away from the TV transmitters in NYC and I get perfect free OTA TV in full HD.

If Cablevision truly wants the public to support reform, they need to drop the encryption on must carry and allow FiOS and U-Verse to carry MSG HD and News 12.
wahoospa

join:2006-03-23
Charleston, SC

The Right To Carry Select Channels

"the right to just carry select channels (instead of forced channel bundles), and the ability to publicize the rates broadcasters are trying to charge"

Maybe this will weed out the channels no one wants to see and have to pay for. Maybe some will disappear for good.

n2jtx

join:2001-01-13
Glen Head, NY
Reviews:
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Finally!

These are all good ideas. Especially forcing publication of the rates demanded by the broadcasters. Last years blackouts on Cablevision were ultimately settled but we never heard exactly what the price was for those settlements (ABC and Scripps).

Also, unbundling is a great idea too. Channels should sink or swim on their merit not the pockets of the subscribers. If investors think a channel is a great idea, then they should foot the bill to pay for its carriage and make it freely available to anyone who wants it. After a certain period of time, it can be turned into a subscription model and they can then see if people are willing to pay for it. Similar to what the New York Times is doing now moving from free online to paid. I myself would love to have ala carte. I would ditch the ESPN, ESPN 2, Yes! and all their equivalents and stick with the channels I want. I do not expect sports enthusiasts to subsidize my viewing interests and I do not want to subsidize theirs. Especially as their channel cost a hell of a lot more than the news channels I want.
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BF69
Premium
join:2004-07-28
Camden, TN

Re: Finally!

said by n2jtx:

These are all good ideas. Especially forcing publication of the rates demanded by the broadcasters.

When people see how ESPN and ESPN 2 is $6 of their cable bill then maybe ESPN will come down on the rates.
jasondean

join:2009-08-28
Brooklyn, NY

Re: Finally!

That might not necessarily be true.. as part of their agreements you now can watch most of ESPN via PC or smartphone. You're getting added value for your $6/mo. Compare that to YES Network who wants to tack on another $59 for ONLY Yankees games and ONLY while in the Yankees market for ONE channel. Eventually these networks will be accessible not only through traditional methods and be more flexible.

Yes the cable companies are greedy as well as broadcasters. If we really don't like it we can always turn off our TVs and read a good book. We could also complain to our legislators who gave most of these cable companies monopolies in their territory and give us real competition.

BF69
Premium
join:2004-07-28
Camden, TN

Re: Finally!

said by jasondean:

That might not necessarily be true.. as part of their agreements you now can watch most of ESPN via PC or smartphone. You're getting added value for your $6/mo.

A) not everyone has a PC and internet.
B) ESPN is only available on certain smartphones not all or even most
C) It's ESPN 3. Not ESPN. No MNF or any of the shows ESPN has.
D) Not everyone likes sports. My 64 year old mother never watches ESPN but $6 of her cable bill goes to pay for ESPN and ESPN 2. So what benefit is all the crap you mention to her? I'm 100% sure she's rather have $6 knocked off her bill and not receive ESPN and ESPN 2.

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

Yawn...

I would imagine that the only "retrans reform" that any cable company would support would simply shift the dollars from the content provider back to the cable company. From a customer perspective it won't make any difference because the cable bill will still be the same.

I hope that the trend of people simply cutting the cord at higher cable TV rates continues... it will be a great day when the mere threat of canceling service, as opposed to threatening to switch to a different provider, will force cable TV rates to get back down to something reasonable.
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BF69
Premium
join:2004-07-28
Camden, TN

Re: Yawn...

said by pnh102:

I would imagine that the only "retrans reform" that any cable company would support would simply shift the dollars from the content provider back to the cable company. From a customer perspective it won't make any difference because the cable bill will still be the same.

I hope that the trend of people simply cutting the cord at higher cable TV rates continues... it will be a great day when the mere threat of canceling service, as opposed to threatening to switch to a different provider, will force cable TV rates to get back down to something reasonable.

Here's the problem. Some of the most popular shows are on cable. And sure you can buy current season episodes on Itunes and Amazon, but they want $3 for HD even on 30 minute sitcoms. Well hell might as well keep cable at those prices. Also things like playoffs in NBA, NHL and MLB are on cable.

fifty nine

join:2002-09-25
Sussex, NJ
kudos:1

Re: Yawn...

said by BF69:

said by pnh102:

I would imagine that the only "retrans reform" that any cable company would support would simply shift the dollars from the content provider back to the cable company. From a customer perspective it won't make any difference because the cable bill will still be the same.

I hope that the trend of people simply cutting the cord at higher cable TV rates continues... it will be a great day when the mere threat of canceling service, as opposed to threatening to switch to a different provider, will force cable TV rates to get back down to something reasonable.

Here's the problem. Some of the most popular shows are on cable. And sure you can buy current season episodes on Itunes and Amazon, but they want $3 for HD even on 30 minute sitcoms. Well hell might as well keep cable at those prices. Also things like playoffs in NBA, NHL and MLB are on cable.

95% of the most popular shows are OTA. Cable is mostly re-run land.

BF69
Premium
join:2004-07-28
Camden, TN

Re: Yawn...

said by fifty nine:

said by BF69:

said by pnh102:

I would imagine that the only "retrans reform" that any cable company would support would simply shift the dollars from the content provider back to the cable company. From a customer perspective it won't make any difference because the cable bill will still be the same.

I hope that the trend of people simply cutting the cord at higher cable TV rates continues... it will be a great day when the mere threat of canceling service, as opposed to threatening to switch to a different provider, will force cable TV rates to get back down to something reasonable.

Here's the problem. Some of the most popular shows are on cable. And sure you can buy current season episodes on Itunes and Amazon, but they want $3 for HD even on 30 minute sitcoms. Well hell might as well keep cable at those prices. Also things like playoffs in NBA, NHL and MLB are on cable.

95% of the most popular shows are OTA. Cable is mostly re-run land.

Not true. Cable has plenty of shows that are not re-runs that people. Their choice is to pay for cable or pay $3 per episode. For example I like Tosh.0. I either pay for cable to get comedy Central or pay for episodes at Amazon for $3. Now season 3 is going to be 30 episodes. So that's $90. Well I like Tosh.0 But I'm not paying $90 for ONE show. As I said might as well keep cable. And there's plenty of other shows people watch. In fact I hardly watch network TV because it's all reality show crap.

pnh102
Reptiles Are Cuddly And Pretty
Premium
join:2002-05-02
Mount Airy, MD
said by BF69:

Here's the problem. Some of the most popular shows are on cable. And sure you can buy current season episodes on Itunes and Amazon, but they want $3 for HD even on 30 minute sitcoms. Well hell might as well keep cable at those prices. Also things like playoffs in NBA, NHL and MLB are on cable.

Popularity is of course in the eye of the beholder. For us, most of what we watch can be had off-air, via Hulu, or via other websites which stream those shows.

As for watching sports, we aren't interested in that at all. If Comcast offered me a non-sports package at a significant discount, I would definitely take it. Of course the only reason I still retain any of Comcast's video services is because I told them I would cancel if they did not lower my rate, and they did so.
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JDNY

@ridgefieldcap.com

Stick an antenna in them...

1. I'm sure there are a good number of cable subscribers that could simply install a small antenna somewhere and receive the OTA stations with minimal effort and good signal quality. It's not like the old days where you had snowy pictures and fiddled with rabbit ears for an hour for one channel. If the broadcast stations don't want their shows on cable or want high retrans fees, I'll just use my built in ATSC tuner.

2. CV can't turn around and hold back their HD stations from Verizon while crying about someone else. They got into the phone game but Verizon can't say pay up if you want to use our phone lines. The contracts should be identical for what CV offers TWC, Directv, etc.

3. If there was a good technical way to achieve this, here would be the ultimate solution: CV installs local antennas on their poles and provides ATSC tuners in their boxes. Piggyback the signals on the coax to the boxes and let the box switch off between their cable network and the OTA stations. CV no longer has to pay the retrans fees and everyone gets clear digital TV.

The sooner everyone ends their greedy ways, they can all come up with a win-win situation.

BF69
Premium
join:2004-07-28
Camden, TN

Re: Stick an antenna in them...

said by JDNY :

1. I'm sure there are a good number of cable subscribers that could simply install a small antenna somewhere and receive the OTA stations with minimal effort and good signal quality. It's not like the old days where you had snowy pictures and fiddled with rabbit ears for an hour for one channel. If the broadcast stations don't want their shows on cable or want high retrans fees, I'll just use my built in ATSC tuner.

2. CV can't turn around and hold back their HD stations from Verizon while crying about someone else. They got into the phone game but Verizon can't say pay up if you want to use our phone lines. The contracts should be identical for what CV offers TWC, Directv, etc.

3. If there was a good technical way to achieve this, here would be the ultimate solution: CV installs local antennas on their poles and provides ATSC tuners in their boxes. Piggyback the signals on the coax to the boxes and let the box switch off between their cable network and the OTA stations. CV no longer has to pay the retrans fees and everyone gets clear digital TV.

The sooner everyone ends their greedy ways, they can all come up with a win-win situation.

won't work in my area.

JDNY

@ridgefieldcap.com

Re: Stick an antenna in them...

You're right.... Unfortunately it won't work for everyone but for people in large cities within 25 miles of a transmitter it will. If the cableco stopped retrans where antennas will work, the broadcast stations would have to rethink their strategy very quickly. Imagine if Cablevision and TWC dropped OTA in NYC and they lost the fees for over a million homes? Imagine that duplicated across the top ten markets in the US...

I set up a Antennas Direct - ClearStream 2 Long-Range HDTV Outdoor Antenna 20 feet up and almost 50 miles from Philadelphia and was able to pull in everything but VHF stations. I'm sure if I picked up the DB8 instead I would have pulled everything.

fifty nine

join:2002-09-25
Sussex, NJ
kudos:1
said by JDNY :

3. If there was a good technical way to achieve this, here would be the ultimate solution: CV installs local antennas on their poles and provides ATSC tuners in their boxes. Piggyback the signals on the coax to the boxes and let the box switch off between their cable network and the OTA stations. CV no longer has to pay the retrans fees and everyone gets clear digital TV.

Won't work. As long as the antennas are owned by Cablevision, retrans fees kick in. Besides, how do you think cable TV works? You can't just feed antenna and cable on the same coax unless you change the frequencies cable or each channel is operating on, which is exactly what they do at the headend (except that they demodulate then re-mux, encrypt and redistribute).

Cablevision really just needs to stop whining and blaming the stations for rate increases. Cablevision profits increased 40% in 1Q 2011. They can definitely afford to pay the retransmission fees to broadcasters without raising rates.

NOCMan
MacChatter
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Colorado Springs, CO

A La Carte Will not be a utopia

Right now we have 400 channels because we pay for all of it, but if/when you can select only the channels you want, you may find a lot less to select from. This is because those "Filler Channels" will most likely just go away and that channel may be the one that carries your favorite re-runs.

And if you think you're tired of reality shows and we move to a channel buffet, you're likely to see more of them since they unfortunately rate high, and are super cheap to produce. New TV shows would create a huge risk. On the upside if a new show is crap, it would go away a lot faster than now.

BF69
Premium
join:2004-07-28
Camden, TN

Re: A La Carte Will not be a utopia

said by NOCMan:

Right now we have 400 channels because we pay for all of it, but if/when you can select only the channels you want, you may find a lot less to select from.

Well I basically do that now. I only watch HD. So all the analog and SD digital channels I get I never watch. I'm paying for them but sorry I'm not watching SD on my HDTV. So I'm paying for channels I never watch. Why shouldn't I be able to pay for only the 30 odd HD channels I actually get to watch? And heck I don't even watch most of those.
bugabuga

join:2004-06-10
Austin, TX
More reality shows? On little cheap channels, perhaps.
It's not going to be any different from what the selection process is now.

Except "experimental" channels will be harder to come by, and producers will have to think twice (or three or even five times) before trying to pump out new channels for, say, knitting-while-skydiving-only shows, or something else marginal.

Means less expenses for channel parent company
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Really

@optonline.net

What it should be

It should be more like this: 1) Broadcasters cannot charge for channels with ads, 2) The cable company can charge it's viewers for costs plus, 3) Channels with ads are free to cable viewers, 3) Pay channels are optional and chargeable to viewers and 4) On demand would be optional and chargeable to viewers.

Example A: A customer just wants channels with ads. Their bill is the total cost of the facilities divided by total number of cable customers plus 10%. All channels are free and available and advertising cannot exceed 20 minutes per hour except during programming (infomercial's do not apply).

Example B: A customer wants channels plus pay channels (or bundle). Their bill is the total cost of the facilities divided by total number of cable customers plus 10% AND a predetermined price for each pay channel (or bundle). On demands are charged on a per use basis.

This would allow Cable companies to always meets their costs with a 10% profit. Income for pay channels can be whatever they want to charge and can be negoiated with the broadcasters. This model might not be the big money maker it is now but would promote lower costs for the cable customers. The real crooks are the broadcasters charging for channels with ads and wanting to get paid by advertisers AND by viewers (it was not that way originally)!

One can dream...

MxxCon

join:1999-11-19
Brooklyn, NY

Re: What it should be

but who decided that 10% is enough of a profit?
setting a fixed profit margin is not going to fly in this "free market" economy. nobody will allow gov't to "meddle" in how business does business and how much money it charges or makes.
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Really

@optonline.net

Re: What it should be

It's ten percent of the cost of running the facility to bring the cable to the house and providing the free channels. Pay channels and On Demand will be whatever the market can bear.

MxxCon

join:1999-11-19
Brooklyn, NY

Re: What it should be

i understand that. but who decided that 10% is sufficient?
gov't is going to regulate how much somebody makes?

Really

@optonline.net

Re: What it should be

It can be an arbitrary number as long as the facility cost is listed separate for other charges so that customers can see what they are paying for. The 10% is a suggested fair price over costs but whatever the market can bear just brings you back to the ridiculous bills that we pay now for most sponsor paid TV.

Example:

item 1: $N.NN for connection and free channels
item 2: $N.NN for HBO package deluxe
item 3: etc...

EGeezer
Summertime
Premium
join:2002-08-04
Midwest
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Reviews:
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How it works today

"I'd like a cup of coffee and a piece of pie please"

"You can get coffee and pie in our special "taste of home" bundle"

"what's a 'taste of home' Bundle?"

"It's the coffee, Limburger cheese sandwich, dish of boiled rhubarb, spinach and pie bundle".

"But I don't like Limburger cheese, rhubarb makes me break out in hives and spinach makes me puke."

"Our consumer preference studies all say you want Limburger cheese sandwich, rhubarb and spinach with your pie".

"The studies are wrong. I don't want those. I only want coffee and pie"

"We don't offer a coffee-and-pie-only bundle"

"Well then, I'll just have a separate cup of coffee and a separate piece of pie"

"You need to order the bundle to get those"

"Don't I have any other choice?"

Well, we do believe in customer choice. Take it or leave it. Those are your choices"

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