FCC May Force Pay-TV Providers Who Blackout Channels in Retransmission Disputes to Offer Rebates to Customers
The FCC is seeking comments on a proposal to compel companies like Spectrum and DIRECTV to offer subscribers affected by disputes some of their money back.
DIRECTV and TEGNA’s recent retransmission dispute kept more than 60 local channel affiliates in dozens of markets off the air for six weeks. That’s six weeks that DIRECTV, DIRECTV STREAM, and AT&T U-Verse subscribers did not have access to live sports, local news, and more valuable programming on channels like NBC, ABC, and others. The Federal Communications Commission (FCC) has taken note of the increase in such disputes and is looking into a new rule that would give customers some relief if their channels are thusly forced off the air.
- The FCC’s new proposal would compel providers who lose channels because of retransmission disputes to give customers rebates.
- The Commission is taking comments on the proposal, including whether it has the authority to adopt such a rule and how much rebates could be for.
- DIRECTV frequently offers bill credits during retransmission disputes, but other providers often choose not to do so.
What’s In New FCC Rule Proposal?
Essentially, the FCC is proposing that cable and satellite providers who lose channels because of retransmission disputes compensate their customers for their vanished programming. In the filing, the Commission notes that such disputes are growing in number, despite the fact that many cable companies charge an extra monthly fee to receive local channels.
“Over the past decade, data indicates that the number of blackouts resulting from unsuccessful retransmission consent negotiations has increased dramatically,” the FCC proposal reads. “These blackouts often frustrate subscribers because they lose access to programming from their cable operator or [satellite] provider that they had previously received. A leading cause of these disputes is disagreements over per-subscriber programming fees. However, subscribers may not see rebates or bill reductions during the carriage dispute when the cable operator or [satellite] provider does not carry the broadcast TV station, even though many cable operators and [satellite] providers charge a fee on subscribers’ bills that purportedly pays programmers for subscriber access to the broadcast signal or network.”
The proposal also says the FCC is seeking commentary on a number of issues surrounding the new rule, including whether that body has the authority to adopt such a regulation, how rebates should be offered, the effects the rule might have on digital equity, and more issues. The rule was published on Wednesday, Jan. 17, and commentors have 30 days from that date to send information to the FCC.
Which Providers Would Be Affected by New FCC Rule?
The way the rule is written, it would encompass all the top cable and satellite providers in the United States, presumably including their live TV streaming counterparts (if any). It means that customers who had been affected by DIRECTV’s recent dispute with TEGNA would have gotten a rebate for their missing channels, though how much of a rebate has yet to be parsed out by the FCC.
DIRECTV at least offered customers a $10 credit on their bill during the dispute, but they had to call the company and likely grapple with either automated help lines or long wait times. Spectrum TV customers had to likewise call in to get a $15 rebate when their service dropped Disney-owned channels temporarily in late summer of 2023.
Fubo customers got no credits or rebates when that streamer lost access to CBS stations in early 2023, however, some providers choose to let such disagreements pass without making restitution to customers. The FCC thinks that arrangement is unfair, especially considering the increases in retrans disputes in the past few years, and it may decide to compel providers who get caught up in such disputes to rebate their customers for temporarily lost channels.
DIRECTV STREAM
DIRECTV STREAM is a live TV streaming service, which is essentially the streaming version of the DIRECTV service. All packages include local channels and at least 31 of the top 35 cable channels. New subscribers can get a free Gemini streaming device from the company, in which case the service is called “DIRECTV via Internet.”