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Wednesday, July 6, 2011

postheadericon Broadcast blackouts â where are we with reform efforts?

The threat of TV blackouts is never welcome news. For the millions of consumers unlucky enough to have had to worry about their favorite shows going dark, or actually losing their signals, the problem is not only real but frustrating and inconvenient. So what’s being done about it?

Blackouts occur when video distributors (such as cable, satellite and telephone companies) are unable to reach agreement with television stations over “retransmission consent” fees. These disputes frequently blow up into public relations battles with each side blaming the other and consumers getting caught in the middle. At worst, TV stations pull the plug and their channels go dark for days and sometimes weeks.

Why is this happening? Broadcasters say it’s because they need more money to pay for programming, so they have to charge higher rates. Program distributors say it’s because broadcasters have the incentive and ability to play hardball, since there is usually m! ore than one distributor in each local market to keep carrying the station. We see it happen in large markets and small ones. 

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