Steve Mehs
05-07-03, 04:11 AM
News Corp.'s proposed $6.6 billion takeover of DirecTV and Hughes surfaced at a Senate Commerce Committee hearing Tuesday, with cable operators telling lawmakers the transaction for the media giant could lead to trouble tied to programming and broadcast station carriage.
Cable operators said their issues with the merger - as well as overall dealings with the big programmers - surround retransmission consent, and how broadcasters use that mandate to force MSOs to buy their cable and satellite programming along with broadcast stations. Cable executives told the Senate panel that News Corp.'s takeover of DirecTV would create a vertical content and distribution titan that may use its prowess to gain carriage of its programming, possibly tying retransmission consent for its FOX stations to any deal for other channels.
Cox Communications President and CEO James Robbins said the News Corp./DirecTV combination could "flex its programming and distribution muscle to give it preference to its networks." Concurring with that opinion were Cablevision's Charles Dolan and James Gleason, president and COO of small MSO CableDirect.
Gleason told lawmakers that program access laws applied to cable operators which own programming should also be required for vertically integrated satellite TV companies. Dolan promoted the use of a la carte and tiered programming options during his testimony.
Dolan said, "Unfortunately, our customers' shopping carts face a littered road ahead. Debris left over from our industry's long technological and legislative history," is forcing unwanted programming into the home, particularly sports programming. "The cable bill at the end of the month is increasing against the customer's wishes," he added.
Executives with News Corp. and DirecTV/Hughes were not at the hearing. According to reports, officials with each company had prior commitments, and were unable to attend.
The House Judiciary Committee will hold an oversight hearing on the News Corp./DirecTV deal Thursday.
In another development at the hearing, Yankees Entertainment and Sports CEO Leo Hindery told lawmakers his network, which carries Yankees games and is delivered by DirecTV and a number of MSOs, offered EchoStar the same terms it gave DirecTV to carry the net. "It was their prerogative" to accept or deny the offer, he said. EchoStar's DISH Network does not carry YES.
From SkyReport (http://www.skyreport.com) (Used with Permission)
Cable operators said their issues with the merger - as well as overall dealings with the big programmers - surround retransmission consent, and how broadcasters use that mandate to force MSOs to buy their cable and satellite programming along with broadcast stations. Cable executives told the Senate panel that News Corp.'s takeover of DirecTV would create a vertical content and distribution titan that may use its prowess to gain carriage of its programming, possibly tying retransmission consent for its FOX stations to any deal for other channels.
Cox Communications President and CEO James Robbins said the News Corp./DirecTV combination could "flex its programming and distribution muscle to give it preference to its networks." Concurring with that opinion were Cablevision's Charles Dolan and James Gleason, president and COO of small MSO CableDirect.
Gleason told lawmakers that program access laws applied to cable operators which own programming should also be required for vertically integrated satellite TV companies. Dolan promoted the use of a la carte and tiered programming options during his testimony.
Dolan said, "Unfortunately, our customers' shopping carts face a littered road ahead. Debris left over from our industry's long technological and legislative history," is forcing unwanted programming into the home, particularly sports programming. "The cable bill at the end of the month is increasing against the customer's wishes," he added.
Executives with News Corp. and DirecTV/Hughes were not at the hearing. According to reports, officials with each company had prior commitments, and were unable to attend.
The House Judiciary Committee will hold an oversight hearing on the News Corp./DirecTV deal Thursday.
In another development at the hearing, Yankees Entertainment and Sports CEO Leo Hindery told lawmakers his network, which carries Yankees games and is delivered by DirecTV and a number of MSOs, offered EchoStar the same terms it gave DirecTV to carry the net. "It was their prerogative" to accept or deny the offer, he said. EchoStar's DISH Network does not carry YES.
From SkyReport (http://www.skyreport.com) (Used with Permission)