Cable Launches Offensive to Battle Retrans

In the category of "whatever-happened-to-free-TV?"

A petition is making its way around cable circles this week urging the Obama administration to update the retransmission consent system. Started by ACA member Mediacom, and soon joined by the NCTC, the petition is now seeking support from fellow cable interests in putting a stop to what the industry sees as out-of-control retrans fees.

The petition draws attention to the fact that broadcast television regulations haven't been updated in nearly 20 years. Since, the campaign holds, the video market has changed dramatically trapping consumers by arbitrary boundaries "that give broadcast stations monopoly powers over network and syndicated programming."

According to NCTC President and CEO Rich Fickle, the White House will review the petition if it receives at least 25,000 signatures by today (Dec. 8). The petition's web page at WhiteHouse.gov has a counting ticker of how many signatures the campaign has received so far.

The "government constructed marketplace has stifled competition and innovation, limited consumer choice, led to threatened and actual blackouts of must-have programming, and dramatically driven up cable and satellite rates," the petition says. "We urge the Obama Administration to initiate a process to update this outdated regime."

The petition can be found and shared here. •

Nexstar: $2/Month Retrans Fees

Nexstar Communications CEO Perry Sook raised eyebrows this week when he said the company will charge cable and satellite providers upwards of $2 per subscriber per month within the next handful of years. If the company follows through with its plans, the $2 fee would allow the company to collect more revenue per subscriber than most major cable networks in the country.

Just last month, Nexstar reported Q3 results that included nearly $10M in revenue collected from retrans fees alone (a 30.5% increase from the previous year). According to SNL Kagan, in 2009, pay-TV providers paid an average of $.74 per sub in retrans fees. Nexstar's planned $2 rate would nearly triple its current fees. •

Etc.: Verizon's Online Video Play - Cablevision Sues Verizon - Is Netflix 'Broken'?

Strategy: Verizon is reportedly mulling the idea of an online subscription video service that would offer older movies and TV shows. WSJ says the telco has been negotiating with media companies during the past several months for rights to programming packages. Read more. --- Many cable companies may be considering a switch to usage-based billing next year, but Comcast isn't one of them. Head Comcastian Neil Smit said this week at the UBS conference that such plans wouldn't be good for the company's blossoming broadband business. Read more at GigaOm. --- "The competitor we fear the most is HBO Go," says Netflix CEO Reed Hastings. "HBO is becoming more Netflix-like and we're becoming more HBO-like." Bloomberg has the story on how Hastings sees the two companies competing "for a very long time."

In Court: Cablevision filed a lawsuit in federal court accusing Verizon of false advertising and making misleading claims about the MSO's internet speeds. The suit comes on the heels of an FCC announcement that Cablevision's internet service is now delivering 90% of its advertised speeds. Verizon says its ads are based on the FCC's August tests that showed CVC was only delivering 59% of advertised speeds. --- AT&T and Sprint filed briefs urging the gov't to complete its antitrust case against AT&T's proposed T-Mobile merger before a federal court judge hears Sprint's own lawsuit aimed at blocking the deal. The companies disagreed, however, on the trial's schedule: AT&T wants to delay setting a date until a verdict is reached in the DOJ's trial, while Sprint says the judge should set the date after hearing all the evidence in the first case.

Analyze This: Downgrades, sub losses, share price plummets and service fee increases… The question seems moot. But some are asking, now… just how broken, if at all, is Netflix's business model? Wedbush analyst Michael Pachter says maybe what's really "broke"  is investor expectations. Read more. Besides, Time Warner CEO Jeff Bewkes says… "Netflix is our friend."

Labor: Verizon has fired 40 employees for their involvement in the company's worker strike earlier this year. The company said the employees damaged Verizon property and threatened to use violence during the labor stand-off. The Globe has more.

Rules & Regs: The FCC will hold an open meeting on Tuesday, Dec. 13 to discuss the CALM Act and market conditions surrounding domestic and international satellite communications services. --- Creative America, the "grassroots" coalition of movie studios, guilds, TV networks and companies such as CBS, NBCU, Sony, 20th Century Fox, Viacom, Disney and others, launched a massive advertising campaign this week in favor of SOPA and the PROTECT IP Act. The first of many videos that will air on broadcast and cable nets can be viewed here.  --- A Senate Judiciary subcommittee is again asking if Congress should mandate that the U.S. Supreme Court televise its oral arguments. A bipartisan Cameras in the Courtroom Act was introduced this week by Sens. Chuck Grassley (R-IA) and Dick Durbin (D-IL). The Wrap has details.

$$$: Clearwire said it will look to raise almost $600M in stock offerings ahead of its planned LTE network buildout. The company will sell $300M of Class A common stock in a public offering with an option to purchase up to an additional $45M of Class A shares. Meanwhile, majority owner Sprint said it would purchase $295M of Clearwire's Class B common stock in a separate transaction. --- Viacom said it has agreed to sell $400M in aggregate principal amount of 2.5% senior notes due 2016 at a price equal to 99.366% of the principal amount and $600 million in aggregate principal amount of 3.875% senior notes due 2021.

Advertising: Current economic conditions have forced advertisers to operate under a "caution flag" during Q4, says CBS chief research officer David Poltrack. Speaking at the UBS conference this week, the exec predicted a brighter future for the market moving forward saying broadcast network ad revs would increase by more than 7% next year. --- Last week we linked you to AdWeek's top-10 ads of the year. Well… here's their 30 "freakiest" ads of 2011. Enjoy.

Deals: CBS Sports Network signed a multi-year agreement with the PBR (Professional Bull Riders) to televise the group's 27 live events throughout 2012. Yee-haw. --- Mediacom said it will add free, ad-supported Hulu content to its online video portal Mediacomtoday.com.

Up, Down & Over There: BSkyB says the UK's Competition Commission failed to consider the impact of online video distributors like Netflix and LoveFilm when it studied pay TV movie rights. The company believes FSPTW (first subscription pay-TV window) rights don't apply to OTT operators and give the services an unfair advantage. Read more at BroadbandTV News.

SkyREPORT: ViaSat said it has successfully transmitted data over the ViaSat-1 satellite and the WildBlue network. --- Inmarsat selected Intellian Technologies to build maritime antennas for its Ka-band Global Xpress service.

--- Catch today's media market news in The Evening BRIDGE. •