Informed Opinions on Today’s Topics : Should Cable Pay to Carry Local Stations?

Under a new federal cable television law, broadcast stations can now demand compensation from cable operators who carry their programs. Cable companies that refuse to pay have the right to drop the station, although under the law’s “must-carry” provision they are required to transmit broadcast programming offered for free. Most cable subscribers in the Los Angeles metropolitan area can simply tune in any dropped stations with their TV antennas, but viewers in remote areas, including those served by two Santa Clarita Valley cable companies, risk the loss of some stations altogether if agreements cannot be reached by Oct. 6.

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Should broadcast television stations charge cable companies a fee for the retransmission of their programs?

Reed Manville, president and general manager of KNBC Channel 4, which will require compensation from cable companies carrying its signal:

“KNBC-TV’s broadcast signal has value, and cable’s own research proves it. In a recent poll conducted by Yankelovich Partners for Tele-Communications Inc., a major cable system operator, 59% of subscribers said they would cancel cable if local broadcast stations were not carried. Regarding the issue of limited access to broadcast due to location, the last thing KNBC-TV wants is for someone not to be able to receive our broadcasts, so we will be responsible and reasonable in negotiations and we hope the cable companies will do the same.”

Scott Binder, general manager of ATC Cablevision, which serves 22,000 homes in the Santa Clarita Valley:

“Based upon information from advertising research firms, ATC Cablevision customers in the Santa Clarita Valley are worth $2.8 million in advertising revenue to the Los Angeles area broadcast stations annually. We would be happy to continue this win-win arrangement. Broadcasters would continue to benefit from the increased advertising revenue that our viewers represent and our customers will continue to enjoy network programming.”

David Woodcock, president and general manager of KCAL Channel 9, which will offer its signal free to all cable operators:

“We considered the options and decided that must-carry provided the best opportunity to establish a mutually beneficial relationship with the cable community with very little complication. In addition, must-carry gives the added advantage of securing our on-air channel position.”

Peggy Keegan, vice president of public affairs for the California Cable Television Assn.:

“It is important to recall that cable television transmission of local broadcast signals has greatly expanded the audience of local broadcasters. This gives local broadcasters access to households they would not otherwise have been able to reach and increases the ability of local broadcasters to expand their advertising base. The Cable Act does not specify what, if anything, should be given for retransmission rights.”

Charles Sherman, senior vice president of the National Assn. of Broadcasters television division:

“Cable operators make billions charging consumers for free TV. What a deal . . . and what a steal! If cable operators sell broadcast programming, they should pay TV stations for it, like they pay for CNN and ESPN. One thing’s for sure--if cable companies drop local TV stations that want to negotiate for payment, consumers should pay less--more than 50% less, according to several studies. Broadcast TV is what makes cable worth watching.”