WASHINGTON, D.C. - U.S. Representative Nathan Deal, R-Ga., today praised the release of the FCC’s “Further Report on the Packaging and Sale of Video Programming Services to the Public” (the Further Report). By revisiting the original study, the FCC has burst the myth that there is only one way to provide cost-efficient video services to consumers.
“I applaud Chairman Martin and the FCC for issuing the ‘Further Report’. It publicly acknowledges what I and others have said all along, which is the original report was flawed and based on inaccurate data. I, along with a bipartisan group of my fellow colleagues on the House Energy & Commerce Committee, sent a letter to Chairman Martin encouraging him to conduct this review and are pleased he has done so,” Deal stated.
Rep. Deal went on to say, “The ‘Further Report’ by the FCC marks an important step in the struggle to provide individuals and families more control over the television programming allowed into their homes. Like so many other Americans, I have grown increasingly concerned that families are not being provided sufficient choice when choosing a cable or satellite package. This report validates that view and challenges the FCC and the Congress to step forward with meaningful solutions to correct this situation.”
By revisiting their old, flawed report which implied that a la carte regulation is undesirable, the FCC acknowledged the need to improve consumer choice and opportunities. Finding the original report to be an “incorrect and biased analysis,” based largely on “unsupported and unrealistic assumptions,” the FCC now realizes, contrary to prior statements, that providing choice and options to consumers is a good thing. “I encourage Chairman Martin not to stop here, but to turn awareness into action and look forward to working with the FCC to make this vision a reality, “ said the Georgia congressman.
Congressman Deal continued that the underlying problem preventing video distributors from offering a la carte or themed-tiers is retransmission consent agreements. “Cable and satellite operators need the flexibility to offer packages which best suit their markets. However, antiquated and anti-competitive retransmission consent rules and agreements often prevent them from being able to do so because the retransmission rules allow broadcasters to tie and bundle channels, as well as dictate channel placement on a particular tier,” stated Congressman Deal.
In conclusion, Rep Deal states, “I believe this report proves that it is time for Congress to boldly examine how the market for video services can be improved. We need to reexamine cable bundling practices, retransmission consent requirements and any other practices considered anti-competitive and a restraint of trade on commerce. It is time our telecommunication laws be based on free market principles where demand dictates supply. Currently, demand is harnessed by retransmission consent rules, thus preventing new and inventive programming services.”
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