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The
program access rules, created by the 1992 Cable Act
(47 U.S.C. §548 (c)(2)), require that
vertically-integrated programmer/cable companies
sell their programming to all multichannel video
programming distributors (MVPDs) at
non-discriminatory prices, terms, and conditions.
This statute allows the Direct Broadcast Satellite
(DBS) platform providers to offer comparable
programming at rates comparable to those of cable
operators, which helps level the playing field in
the multichannel video marketplace.
On
June 13, 2002, the Federal Communications Commission (FCC)
adopted a Report and Order that extended the exclusivity provision of the program access
rules until October 2007. The SBCA and DBS
providers supported the extension of the exclusivity
provision. Further, the SBCA argued that
the Commission should close the terrestrial
distribution loophole. This "escape
clause" creates an incentive for
vertically-integrated cable operators to elect
terrestrial means, instead of satellites, for the
distribution of certain highly desirable
programming, such as regional sports networks, to
cable head ends and broadcast network affiliates.
This loophole allows the cable company to maintain
exclusive rights to the programming and artificially
distorts the multichannel video distribution market
to the detriment of consumers who subscribe to DBS
through the satellite platform providers and
distributors that SBCA represents.
Although
DBS's market share has grown since the prohibition
was enacted, cable still delivers multichannel video
services to approximately 78% of U.S. television
households. With the extension of the prohibition on exclusivity,
the DBS operators' will continue to be able to compete effectively with programming
offerings provided by cable operators. This advances
competition in the multichannel video
marketplace, which the Commission and Congress have
labored for over a decade to foster.
FCC
Decisions and Rulings
SBCA
Filings
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