DirecTV: Eliminating Broadcast Ownership Cap Will Lower Viewership
The elimination of the broadcast TV national ownership cap would lead to higher prices for MVPD consumers and lower broadcasting viewership, said DirecTV in an ex parte filing posted Monday in docket 17-318. NAB's arguments that eliminating the cap won’t raise retransmission consent fees “is a curious position from an organization whose two biggest members seek to merge with the explicit goal of achieving ‘contractual revenue synergies,’” said DirecTV, referencing Nexstar’s proposed $6.2 billion purchase of Tegna.
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Higher retrans fees will raise consumer MVPD bills, which will drive them to streaming services, DirecTV said. “This will encourage subscribers to leave platforms like ours, which carry broadcasters, for online platforms that do not.” If the FCC does eliminate the cap, it should consider prohibiting retrans price hikes, restricting joint retrans negotiations and prohibiting exclusivity agreements, DirecTV added.