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MVPDs, Programmers at Odds in Indie Programming NPRM

Large multichannel video programming distributors and small cable programmers remain apart on restricting some carriage contract conditions, in FCC docket 16-41 reply comments posted Thursday on the independent and diverse programming NPRM. The American Cable Association and indie programmers jointly…

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attacked large programmer arguments that the market is working, saying the "modicum of diversity" that comes from bundled conglomerate networks "foreclos[es] access to others [and] disserves the public interest." They said determination of whether most-favored nation language is unconditional will be relatively easy from the text of the provision itself. Joining ACA were programmers MAVTV Motorsports Networks, Ride TV and sister networks One America News Network and AWE. Charter Communications and Mediacom together said given the vast array of content choices available to consumers, no regulation promoting carriage of a particular program channel or channel group is needed. NAB continued its defense of bundling (see 1701270006), replying that no one provided any empirical evidence of large programmers having market power that rivals that of MVPDs. Public Knowledge said the FCC has authority under sections 616 and 628 of the Communications Act to tackle carriage agreement terms that hurt competition and said there's ample evidence to back the prohibition of unconditional MFNs and unreasonable alternative distribution method (ADM) language. Saying there was widespread agreement that defining indie programmers as those not vertically integrated with an MVPD is too broad, RFD-TV backed a definition meaning unaffiliated with a broadcast network, movie studio or MVPD. Along with backing a prohibition on unconditional MFN and unreasonable ADM clauses in carriage agreements, RFD-TV said the FCC should tackle bundling practices and the high switching costs and early termination fees. Charter/Mediacom also supported the agency taking a narrow definition of indie programmer, pushing one that doesn't include programmers that command significant market power through their offerings of must-have programming. NAB urged that broadcasters not be excluded from the indie programmer definition. Calling itself "a potential entrant to the video distribution marketplace," T-Mobile said the FCC should ensure unconditional MFNs don't block emerging video competitors and that unreasonable ADMs don't block over-the-top competition.