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Retransmission Fees Likely to Increase TV Rates
Mid Century is wrapping up negotiations with local broadcasters for consent to carry their local signals. As background, Federal law requires us to get permission every three years from broadcasters to allow us to retransmit their signals. This process is called “retransmission consent.” In the past, we have found common ground with your local broadcasters for the retransmission of their signals at generally reasonable and affordable terms. Unfortunately, we now face demands for sharply escalating fees, as broadcasters have come to view these negotiations as an opportunity to raise significant amounts of new revenues by increasing charges to local video providers (and thus you). In addition, the national networks, in some cases, are limiting carriage to a channel’s Designated Market Area (DMA). The table to the right indicates the FCC’s DMA for each local channel and county. It may not be indicative of your current local channel lineup but could be in the future. We have no problem with giving broadcasters fair compensation. But the prices they demand go far beyond that. We believe it is wrong that you should have to pay these substantial fee increases, just to receive local broadcast signals from us. Our goal is to negotiate the lowest fees possible, so we can continue to offer affordable programming. Still, current federal law allows broadcasters to impose retransmission fees, and some broadcasters are exploiting that to gouge consumers. It appears a rate increase will be inevitable but rest assured we will do our best to keep it as minimal as possible.
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