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Cable, Telco Groups Target News Corp.'s DIRECTV Request
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Groups representing rural cable operators and telco video providers voiced their collective opposition to a request made by News Corp. to back out of conditions applied to the media giant that were part of its 2004 acquisition of a controlling stake in DIRECTV.
News Corp. has asked the Federal Communications Commission to drop conditions placed on its acquisition of the DIRECTV stake given that it sold its interest in the satellite TV company to Liberty Media earlier this year. The conditions pertain to allowing competing pay-TV services access to News Corp. controlled content, including must-have programming such as broadcast stations and regional sports networks.
On Tuesday, the American Cable Association, the National Telecommunications Cooperative Association and the Organizations for the Promotion and Advancement of Small Telecommunications Companies asked the FCC deny News Corp.'s request. A letter from the groups cited the continued public benefit and lack of harm done to the media giant as a result of the conditions.
The groups also said small and medium-sized video distributors are vulnerable to the withdrawal of "must have" programming, especially content controlled by News Corp.
"News Corp. has the incentive to threaten temporary foreclosure during negotiations to enhance their bargaining position, knowing that the small and medium-sized MVPDs need uninterrupted ‘must have' programming to remain viable," the groups said in their letter. "The conditions have brought a measure of stability and predictability to retransmission consent and regional sports network negotiations and should continue."
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Groups representing rural cable operators and telco video providers voiced their collective opposition to a request made by News Corp. to back out of conditions applied to the media giant that were part of its 2004 acquisition of a controlling stake in DIRECTV.
News Corp. has asked the Federal Communications Commission to drop conditions placed on its acquisition of the DIRECTV stake given that it sold its interest in the satellite TV company to Liberty Media earlier this year. The conditions pertain to allowing competing pay-TV services access to News Corp. controlled content, including must-have programming such as broadcast stations and regional sports networks.
On Tuesday, the American Cable Association, the National Telecommunications Cooperative Association and the Organizations for the Promotion and Advancement of Small Telecommunications Companies asked the FCC deny News Corp.'s request. A letter from the groups cited the continued public benefit and lack of harm done to the media giant as a result of the conditions.
The groups also said small and medium-sized video distributors are vulnerable to the withdrawal of "must have" programming, especially content controlled by News Corp.
"News Corp. has the incentive to threaten temporary foreclosure during negotiations to enhance their bargaining position, knowing that the small and medium-sized MVPDs need uninterrupted ‘must have' programming to remain viable," the groups said in their letter. "The conditions have brought a measure of stability and predictability to retransmission consent and regional sports network negotiations and should continue."