Pay-TV Firms Cheer Wheeler's Proposed Changes

Tom Wheeler

Pay-TV distributors and public interest groups cheered news that the Federal Communications Commission is considering new regulations for local television stations, according to The LA Times.

Specifically, the FCC is expected to vote on March 31 to prohibit separately owned television stations from teaming up to negotiate distribution deals with pay-TV companies.

The practice has become commonplace in the last several years because of an increase the number of operating partnerships between local television stations known as joint sales agreements or shared service agreements.

Under such partnerships, the stronger of the two TV stations typically negotiates distribution deals for itself and the other station. Pay-TV companies say such arrangements have given broadcasters an unfair advantage and resulted in higher pay-TV bills for consumers.

The American Cable Assn. called the practice "collusion" and a "scheme designed to drive up the fees paid by cable-TV providers." The National Cable & Telecommunications Assn. said, "This type of coordinated behavior has resulted in increased prices which are ultimately borne by consumers." Both groups praised the FCC and Chairman Tom Wheeler for the proposed changes.

Read More Now