FCC says cable firms need carry just 1 sig/broadcaster - blow to Sinclair

[paineinthearse]

SINCLAIR SEEKS OWN DIGITAL TV DEALS
In a setback for Sinclair Broadcast Group Inc. and other broadcasters, federal regulators ruled yesterday that cable companies would not have to carry more than one television signal for every broadcast company - a key ruling as the industry shifts toward digital TV. Sinclair is now dealing one-on-one with cable companies to lay the groundwork for carrying the station group's digital channels via every market in which they broadcast.

(Baltimore Sun)
http://www.baltimoresun.com/business/bal-bz.sinclair11feb11,1,2208779.story?coll=bal-business-headlines&ctrack=3&cset=true

FCC says cable firms need carry just one signal per broadcaster
Sinclair, others sought mandatory broader rule

By Andrea K. Walker
Sun Staff

February 11, 2005

In a setback for Hunt Valley-based Sinclair Broadcast Group Inc. and other broadcasters, federal regulators ruled yesterday that cable companies would not have to carry more than one television signal for every broadcast company - a key ruling as the industry shifts toward digital TV. A digital signal can carry more information without using any more space on the broadcast spectrum. Sinclair and other broadcasters want cable companies to be required to carry six digital channels offered by a local television station - known as multicasting.

But the Federal Communications Commission voted 4-1 yesterday to require cable companies to carry one signal for every broadcast company. The lone dissenter, Commissioner Kevin J. Martin, said the ruling will prevent broadcasters from investing in multiple digital programming on cable, giving viewers less choice. In a separate, unanimous vote, the commission said cable companies also wouldn't have to carry both the old analog and new digital stations as television companies make the transition to digital.

Multicasting would open up additional advertising avenues for broadcasters. They said the companies couldn't afford to offer more channels without cable carrying the programming. Cable operators, however, said they didn't want government to determine their channel decisions and wanted to be able to use channel space for other programming. Yesterday's FCC decisions were the latest chapter in a continuing fight between the cable and broadcast industries as the 50-year-old analog television system changes over to more vivid and technologically advanced digital television.

In Baltimore, Sinclair has been embroiled in a dispute with Comcast Corp. over whether the nation's largest cable provider should have to pay to carry Sinclair's stations for high-definition digital viewing on its cable system. The parties came to an agreement in principle in time for Comcast viewers to watch the Super Bowl on Sunday in high definition on Sinclair-owned Fox 45, WBFF-TV. The two companies are continuing to negotiate. During a conference call yesterday to discuss fourth-quarter earnings, David Smith, Sinclair president and chief executive officer, said he hopes the talks set the stage for negotiations with other cable operators. "In the event that we do get a deal done with Comcast, my sense is that it will kind of lay the groundwork for every other cable company within our industry where we broadcast," Smith said. "My sense is that it'll become somewhat of a template for other cable companies to look and say, 'Well, if Comcast can do the following, then I guess we better be prepared to do the following, given that they're the leader in the industry.' So we'd like to get it done," Smith added.

Sinclair didn't comment on the FCC decisions during the conference call and didn't return phone calls.

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