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Sat TV Still Frets About Royalty Rate Hikes

Discussion in 'Legislative and Regulatory Issues' started by Chris Blount, May 18, 2004.

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  1. Chris Blount

    Chris Blount Creator of DBSTalk Staff Member Administrator DBSTalk Gold Club

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    Jun 22, 2001
    Richard DalBello, president of the Satellite Broadcasting and Communications Association, reiterated on Monday satellite TV industry concerns with a possible jump in the royalty rate structure for carriage of distant networks and superstation programming.

    In his weekly Report from the President, DalBello pointed to legislation from the House Judiciary Committee that would raise those rates to reflect a cost-of-living adjustment since 1999, and then require the Copyright Office to convene a panel to determine the fair market value for the content. The SBCA president said his concern comes from the fact that in 1997 a similar mandate increased satellite TV's royalty rates by 350 percent.

    "These rates then had to be re-adjusted downwards by Congress a year later to make them feasible," DalBello said in the weekly report. "This system just doesn’t work. We think adjusting for inflation is appropriate and sufficient. By comparison, cable rates are evaluated every 5 years and adjusted for inflation only."

    DalBello also said he supported the introduction of a "digital white area" in any bill re-authorizing the Satellite Home Viewer Improvement Act (SHVIA). The item would allow for satellite delivery of digital distant networks into areas not served by a local station with a digital TV signal.

    There may be more activity on SHVIA later in the week and before Congress heads out for Memorial Day, DalBello said.

    http://www.skyreport.com (Used with permission)
     
  2. Chris Freeland

    Chris Freeland Hall Of Fame

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    The broadcasters have to raise these royalty rates to make up for lost customers do to less people being able to qualify for distant Nets under the new SHVIA. :D :(
     
  3. RichW

    RichW Hall Of Fame/Supporter DBSTalk Gold Club

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    huh? These royalties do not go to the broadcasters. They go to the group of program producers (copyright holders) who share the "pot" of these collected statutory fees. It works similar to the way royalties are collected by ASCAP or BMI for use of copyrighted music.

    I suspect that the amount of money that any one copyright holder gets from statutory fees is miniscule. Most broadcasters want a total elimination of statutory carriage because they want to eliminate all retransmission of distant signals, making you a caprive of their own broadcast market.
     
  4. Chris Freeland

    Chris Freeland Hall Of Fame

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    Bad attempt at a joke I guess. :)
     
  5. RichW

    RichW Hall Of Fame/Supporter DBSTalk Gold Club

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    Double-Duh on me! ;)

    Sorry I missed the smilies... now your comment makes sense! :lol:
     
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