It probably won’t take much to convince people that the federal government is out of touch. But, the Federal Communications Commission (FCC) may have just reached a new height, or low. The FCC has just ordered cable companies to lease channels to for-profit programmers for free in most cases.
Why would the FCC want to offer home shopping channels free access to cable customers? Well, according to the FCC’s chairman and two Democratic Commissioners (two Republican Commissioners dissented) it’s part of an effort to ensure diversity in programming. Never mind that we now have 500 channels on cable that cover practically every interest, language, and taste. The FCC Chairman apparently believes viewers are in danger of not having enough variety.
Remember, we are not talking about public-access, educational, or government channels, which are covered under other laws and regulations. These are channels leased to commercial enterprises. In most cases, these are home shopping channels.
The slap-dash method of coming up with the formula for setting prices on these leased access channels has resulted in a zero rate. That’s right. See, cable companies sometimes purchase bundles of channels, and in the process get some of the lesser watched channels for “free,” just as we sometimes get a “buy one, get one free” deal at the supermarket. Since the cable companies have to offer their lowest rate, and they get some channels for “free,” well, the new leased access rate is zero! Make sense?
Well, it gets worse. The FCC order also requires the cable companies to justify their lowest available rates within three days of an inquiry. That means hiring full-time staff to stand by and supply reams of information in case anyone demands justification for the rate to lease a channel. Remember now, that rate is zero. So, the FCC order will require staff standing by to justify a rate of zero dollars.
The cable industry’s trade association and various cable operators have appealed the FCC’s ruling.
Let’s hope someone – anyone – in Washington, DC is paying attention, and is able to see a wasteful government program when it is shaking them by the lapels.
Filed under: Regulation, Telecommunications
I’ve been in media for nearly 50 years, have been a reporter for newspaper, radio and TV; have owned several newspapers and for the past 13 years taken advantage of leased access law as some papers take advantage of postal rates to be able to have mainly locally focused content on cable sites.
You seem to have bought cable’s ‘big lie’ on the Zero rate. Of course is can be zero if they use the proper mix of programming to develop the tier they place the leased access rate on.
Sadly members of the cable industry will do, as we say in the South, ’stand on a stack of bibles to lie’, rather than safely on firm ground and admit the truth.
I’m sick of greed driven cable operators with all eyes on Wall Street ignoring the laws and rules they should know they must operate under when they enter the cable business.
The leased access that we are concerned with are the for profit entities that will take advantage of the new loophole. There is a time and place for free government and diversity programming. Government seems to want to over burden the cable industry with needless regulations taht will only provide less diversity and programming.
Personally, I put more trust in the engine of the private sector versus that of the government.