Indie Programmers Powerless Before Vertically Integrated MVPDs, Cinemoi Says
If AT&T's buy of Time Warner goes through, the two largest multichannel video programming distributors -- covering more than half of TV households -- would be vertically integrated, putting the survival of independent channels further in jeopardy, Daphna Ziman of…
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Cinémoi North America told aides to Commissioners Mignon Clyburn and Mike O'Rielly, according to ex parte filings posted Friday in docket 16-41 (see here and here). The indie programmer said "the arms race for marketplace leverage" among broadcasters, big programmers and MVPDs has resulted in consolidation, creating "an untenable environment for emerging independent channels." Indies will need to be carried on one of the two vertically integrated MVPDs to survive, and thus will have to agree to worse contract terms than would be required by MVPDs that aren't vertically integrated, Ziman said. She also said most favored nation language is commonplace, meaning concessions made to those major MVPDs "will become standard language in all independent programmer contracts without offering commensurate value," and the FCC should proceed on its NPRM prohibiting unconditional MFNs.