FEDERAL COMMUNICATIONS COMMISSION

FACT SHEET

July 2000

CABLE TELEVISION FACT SHEET

CABLE CARRIAGE OF BROADCAST STATIONS

The Communications Act prohibits cable operators and other multichannel video programming distributors from retransmitting commercial television, low power television and radio broadcast signals without first obtaining the broadcaster's consent. This permission is commonly referred to as "retransmission consent" and may involve some compensation from the cable company to the broadcaster for the use of the signal. Alternately, local commercial and noncommercial television broadcast stations may require a cable operator that serves the same market as the broadcaster to carry its signal. A demand for carriage is commonly referred to as "must-carry." If the broadcast station asserts its must-carry rights, the broadcaster cannot demand compensation from the cable operator. While retransmission consent and must-carry are distinct and function separately, they are related in that commercial broadcasters are required to choose once every three years, on a system-by-system basis, whether to obtain carriage or continue carriage by choosing between must carry and retransmission consent.

The following document is intended to answer some frequently asked questions concerning the retransmission consent and must-carry provisions.

Q: Why can't I find the station I want to watch on the channel where it was previously located?

A: If you cannot find the station you are looking for on its usual cable channel number, it may have been moved to another channel or dropped. As a result of satisfying its must-carry obligations, the cable company may have changed the television broadcast station's cable channel number. Furthermore, under retransmission consent, television broadcast stations have the right to demand payment for carriage. If the television broadcast station and your cable company could not reach a carriage agreement, then your cable company had to drop the television broadcast station from its channel line-up.

Q: Why has my cable system dropped cable programming services, such as C-SPAN, MTV, USA, etc.?

A: Generally, cable television systems do not have unlimited channel capacity. Federal law requires cable operators to reserve up to one-third of a system's channel capacity for local commercial television stations that have elected must-carry status. In addition, the cable system is generally required to carry the non-commercial television stations that are local to your state or community. In order to accommodate these stations, some cable systems had to decide which programming services to keep and which to remove in order to make space available for local television stations that demand carriage.

Q: Why must my cable system carry so many broadcast stations?

A: The Communications Act requires cable operators to set aside a specified portion of their channels for local commercial and non-commercial television stations. A cable operator with 12 or fewer channels must set aside up to three channels for local commercial television stations and at least one channel for a local noncommercial educational television broadcast station. Cable operators with more than 12 channels must set aside one third of their channel capacity for local commercial stations. Cable systems with between 13 and 36 channels must carry at least one, but need not carry more than three, local noncommercial educational television stations. Cable systems with more than 36 channels must carry all local noncommercial educational television stations requesting carriage with some exceptions for duplication of signals. Local television stations choosing the must-carry option and those that have negotiated agreements for retransmission with the cable system count towards this quota.

Q: What happens if a station chooses the must-carry option?

A: Must-carry stations are generally guaranteed carriage on the cable system on a preferred channel number. Local commercial television stations have been given the option of electing must-carry status or retransmission consent status, while local noncommercial television stations may only seek carriage on a must-carry basis.

Commercial stations that have elected must-carry status have the option of requesting carriage on the same channel number that they occupy over-the-air, on the channel number that the station occupied on July 19, 1985, or on the channel that the station occupied on January 1, 1992. However, television stations may also be carried on any channel that is mutually agreed upon by the station and the cable operator.

Q. Why does the channel line-up on my cable system keep changing?

A: There may be several different reasons for changes to occur in the cable system's channel line-up on an on-going basis. First, a new television station may have entered your market. New television stations also have the right to elect between must-carry and retransmission consent within the initial months of operation. Second, either a broadcast station or a cable system may have requested that the FCC include or exclude a particular broadcast station in your local market. If a decision is made by the FCC to include or exclude a television station from your cable system's market, the station may have to be added or deleted from the cable system. Finally, cable programming services such as C-SPAN, USA or the Comedy Channel, may be added or deleted at the discretion of your cable operator to enable the operator to carry a different cable programming service, or to carry a newly available broadcast station.

Q: Why is the retransmission consent requirement included in the law?

A: Since 1934, broadcast stations that use the programming of other broadcast stations have been required to obtain the prior consent of the originating station. This requirement has now been applied to cable systems because the absence of this requirement was distorting the video marketplace and threatening the future of over-the-air television broadcasting. This law treats broadcasters the same as other programming services carried by cable systems.

Q: Why does my cable system offer several channels with similar programming formats (for instance, religious, Hispanic, shopping) not previously carried?

A: Some stations may have been added to your system because they are considered local for your area and they have requested, and are entitled to, carriage under the must-carry rules. Commercial stations are considered local if they are assigned to the same television market as your cable system. Noncommercial stations are considered local if they are licensed to cities within 50 miles of your cable system or their signals meet certain technical engineering standards at the cable system's reception facility. Other channels with these formats may be cable networks and are carried at the discretion of the cable operator.

Q: What happens if my cable operator and a particular station do not reach a retransmission consent agreement?

A: Until the cable operator and the television station reach an agreement, the cable operator is prohibited from carrying that station's signal. Once an agreement is reached, the station can be put back on the cable system immediately. In addition, every three years broadcast stations must decide whether to demand carriage on local cable systems without receiving compensation or elect to negotiate a retransmission consent agreement.

The initial election between must-carry or retransmission consent was made on June 17, 1993 and was effective on October 6, 1993. The most recent election occurred on October 1, 1999 and was effective January 1, 2000. The next election will occur on October 1, 2002 and will become effective January 1, 2003. All subsequent elections will occur every three years.

Q: What can the FCC do if a broadcaster and a cable operator fail to reach a retransmission consent agreement?

A: Generally, the FCC is not authorized to participate in discussions between television stations and cable systems regarding retransmission consent agreements. Furthermore, the FCC cannot tell a cable operator which stations or program services to delete in order to comply with the must-carry requirement. If you have comments regarding changes in the programming offered by your cable system, you should contact your cable operator. Information on how to contact your cable operator is included on your cable bill.

Q: Will my cable bill increase as a result of retransmission consent agreements?

A: In return for allowing a cable system to carry its signal, a television station may require the payment of a fee or other consideration (for instance, carriage of another programming service or advertising time). Any new or additional costs incurred as a result of retransmission consent agreements may be passed through to cable subscribers.

Q: Should I expect more changes in the programming on my cable system in the future?

A: Yes, the law provides that once every three years broadcast stations may elect between must-carry and retransmission consent. Fortunately, most broadcasters and cable operators agree that the least amount of change possible is the best, for both themselves and the subscribers. To the extent possible, it is anticipated that cable systems will keep changes to a minimum while they comply with any changes in election by broadcasters. In addition, the U.S. Supreme Court affirmed the constitutionality of the federal must-carry law. Therefore, there may be further changes either in response to the Court's decision or to the FCC's refinement of its must-carry regulations. In either case, the FCC's rules require cable operators to notify subscribers 30 days prior to any change in the broadcast stations they carry, or the channel number of the stations they carry. Thus, your cable operator should keep you informed about any changes that will affect your cable service.