WASHINGTON—The pay TV and telco industry-backed American Television Alliance told staffers at the Federal Communications Commission’s Media Bureau that the transition to NextGenTV/ATSC 3.0 would impose “onerous” costs on one of its members, DirecTV.

ATA detailed its concerns about the transition and its conversation with the FCC in an August 12 letter.

One major problem, the group told the FCC, is that DirecTV’s current satellite receivers can only handle the current ATSC 1.0 signals; the other is that the satellite provider does not have the capacity to carry both 1.0 and 3.0 signals.

"First, DirecTV subscribers have millions of set-top boxes that are not designed to receive an ATSC 3.0 signal, and replacing all such equipment would be cost-prohibitive,” the letter noted. “Second, satellite carriers reuse frequencies many times, designing ‘spot beams’ to deliver local broadcast signals to different markets throughout the country. Those spot beams have been allocated sufficient capacity for current carriage requirements in specific local markets and cannot be repointed. Thus, they have no capacity left for carriage of an additional ATSC 3.0 signal from each station.”

The letter acknowledged that the ATSC is developing a standard for MVPD distribution of ATSC 3.0 signals, including over fiber, and that it has developed a “candidate standard” for converting ATSC 3.0 signals, including those delivered over fiber, into formats used by MVPDs.

However, “because of what MVPDs view as the domineering and uncollaborative behavior of the broadcast representatives in the Working Group, there is no longer any MVPD representation in TG3,” the letter complained.

“The development of the A/370 candidate standard, while still in progress, could provide a technical specification under which a `native’ ATSC 3.0 signal could be converted into formats that MVPDs would be able to use (for DirecTV, this is a 1.0 version of the ATSC 3.0 signal),” the letter admitted. “Even if successful, however, this technical capability would not answer the key question for DirecTV—i.e., who bears the costs of the equipment necessary to do this conversion and the delivery of the down converted signal to the MVPD.

“For a nationwide provider like DirecTV, the question of who bears such costs is critical. ATSC 3.0 receivers compatible with DirecTV’s system now cost roughly $8,000 per feed (i.e., primary and multicast feeds). Since DirecTV now carries more than 1,800 feeds nationwide, the total cost to purchase receivers would approach $15 million. Moreover, there is currently very limited supply of such receivers, so if there were a sudden spike in demand the price would only increase,” the letter explained.

“And, again, these costs would bring with them no benefits whatsoever for DirecTV’s subscribers because DirecTV will only be able to provide an ATSC 1.0 feed to customers. Thus, by definition, every dollar DirecTV must spend on the ATSC 3.0 transition is a deadweight loss. Imposing such costs on DirecTV would be onerous, while spreading the cost among the nation’s nearly 1,500 broadcast stations would not only yield a much more manageable financial responsibility for each entity but also place the costs on the parties who stand to reap the benefits of the ATSC 3.0 transition,” the group’s letter explained.

The full letter is available here.

WASHINGTON—Broadcasters should be required to provide a single HD feed of their television service before offering new ancillary or supplementary services, like Broadcast Internet, the American Television Alliance (ATVA) told the FCC.

This stance was raised in ATVA’s comments on the FCC’s “Promoting Broadcast Internet Innovation Through ATSC 3.0,” during which it also brought up the suggestion that the FCC should update its fees for ancillary and supplementary services.

ATVA, which represents cable and satellite operators, states that in 1997 the FCC required broadcasters to transmit in standard definition (it declined to require HD) and that they could devote as much of their spectrum to ancillary and supplementary services as they wished, as long as television remained the primary offering of TV broadcasters—“We expect that the fundamental use of the 6 MHz DTV license will be for the provision of free over-the-air television service.”

As ATSC 3.0 becomes available for broadcasters, it is estimated that a TV station would need as little as 8% to transmit a single SD signal. But if 90% of a broadcaster’s spectrum is used for something other than transmitting a TV signal, it is no longer ancillary, per ATVA.

With customers now expecting higher resolution programming, ATVA believes the FCC should now require broadcasters to offer and simulcast a single HD programming stream, so as not to derogate the primary service with ancillary services.

Another point raised in ATVA’s comments is that the current ancillary and supplementary service fees of 5%—which hasn’t been changed in 18 years—be revisited. The associations suggests the commission analyze what an appropriate fee level would be at this time as not to confer “additional unwanted structural preferences on broadcasters.”

ATVA stresses that it welcomes new ancillary and supplementary broadcast services, but that it thinks the rules need to be updated to maintain TV as broadcasters’ primary service.

ATVA’s full comments are available through the FCC ECFS. 

WASHINGTON—The American Television Alliance (ATVA) has an objection to the NAB proposal made to Congress about providing coronavirus relief funds to TV stations. ATVA claims that the NAB proposal would allow large TV station conglomerates like Hearst, Tegna, Sinclair and Nexstar gain access to relief funds primarily meant for small businesses.

In its proposal, which was also supported by a group of newspaper associations and the National Association for Black Owned Broadcasters, NAB asked Congress to provide federal advertising funds for local media stations and allow them to qualify for the Paycheck Protection Plan. ATVA says the NAB proposal would classify each TV station as its own business, but says that the majority of TV stations are owned and controlled by large station groups.

“The PPP was designed by Congress to provide relief to small businesses in need, and is already stretched beyond its initial funding limitations,” said Jessica Kendust, ATVA spokesperson. “For NAB to suggest that even its very largest members be eligible for these funds once replenished, is not only misguided, but harmful to those who need it the most.”

“These conglomerates are obviously not ‘small businesses,’ nor are they simply collections of stations operating independently,” Kendust continued. “I urge our leaders in Congress to see through NAB’s misguided proposal and to direct PPP funds to the small businesses they were intended for.”

NAB declined to comment on ATVA’s press release.

WASHINGTON—The American Television Alliance (ATVA) last week dubbed 2019 the “worst year ever” for TV blackouts related to retransmission consent negotiations between TV broadcasters and MPVDs.

“Consumers have lost billions of dollars and have been used as pawns,” said ATVA spokesman Trent Duffy.

For the first seven months of the year, TV blackouts have totaled 213, which ties the total for 2017.

ATVA, a coalition of consumer groups, cable, satellite and telephone companies and independent programmers, pointed to a couple of ongoing disputes, which have cut off local TV to subscribers, to underscore the scope of the blackouts.

On July 16, Meredith Corp. pulled its stations in 12 markets from DISH Network, leaving millions of satellite TV subscribers out in the cold, ATVA said.

Nexstar Media Group, too, has pulled 125 stations in about 100 cities around the country from DIRECTV, U-Verse and DIRECTV Now, leaving millions of subscribers without access, it said.

“Congress is right to be looking at our outdated video laws, because the blackout crisis is reaching an epic proportion, and we don’t expect it to stop until Congress does something about it,” said Duffy.

Currently, Congress is considering the reauthorization of the Satellite Television Extension and Localism Act (STELAR), which ATVA supports. Rep. Anna Eshoo (D-Calif.) has advocated for reforming retransmission consent.

“Congress should not only re-authorize STELAR so rural America can continue receiving all their broadcast channels, but also modernize the retransmission consent rules, which currently favor broadcasters at the expense of consumers and competition,” said Duffy.

ATVA released annual totals for blackouts related since 2010. Together, they total more than 1,000. The yearly totals are:

• 213 blackouts in 2019
• 165 blackouts in 2018
• 213 blackouts in 2017
• 104 blackouts in 2016
• 193 blackouts in 2015
• 94 blackouts in 2014
• 119 blackouts in 2013
• 90 blackouts in 2012
• 42 blackouts in 2011
• 8 blackouts in 2010

WASHINGTON—Though not yet through the halfway point of the year, the American Television Alliance has reported that so far for 2019 there has been 62 station blackouts for the U.S. video marketplace. This has been a consistent trend in recent years, as ATVA says that there have been nearly 550 blackouts in the last three and a half years, with an average of more than 12 a month.

On May 30, seven small station groups owned by Sinclair Broadcasting Group went dark on AT&T’s DirecTV, DirecTV Now and U-Verse in 14 cities. The stations are Deerfield Media, MPS Media, GoCom Media of Illinois, Howard Stirk Holdings, Roberts Media, Second Generation of Iowa and Waitt Broadcasting.

“The video marketplace keeps changing, but the TV blackout crisis and retrans racket that hurts consumers stays the same,” said Trent Duffy, ATVA spokesman. “In this case, one of America’s biggest broadcasters is making a mockery of station ownership restrictions by unduly controlling what ‘independent’ broadcasters are doing.”

Congress is currently considering the reauthorization of the Satellite Television Extension and Localism Act. ATVA supports the reauthorization of STELAR, saying that up to 870,000 satellite subscribers could lose access to broadcast channels if it is not renewed.

“Congress should not only re-authorize STELAR so rural America can continue receiving all their broadcast channels, but also modernize the retransmission consent rules, which currently favor broadcasters at the expense of consumers and competition,” said Duffy.

House Majority Whip Steve Scalise (R-La.) Monday (July 23) launched another effort at massive communications deregulation, one he has been pushing for most of a decade, so far without success.

Scalise has reintroduced a discussion draft of his Next Generation Television Marketplace Act, which repeals must-carry and retransmission consent rules and the compulsory license. That is the license that allows broadcasters to include nonlocal programming in their retrans deals without having to secure individual rights from national network and syndication rightsholders.

The bill would also "eliminate the government's role in defining the scope of programming exclusivity" and "codify the repeal of certain limitations imposed on local broadcasters that prevent them from adapting to today’s dynamic communications marketplace."

Like previous incarnations, the bill also includes eliminating the network nonduplication and syndicated exclusivity rules, as well as broadcast ownership limits.

[Read: Retransmission Overhaul Launched]

“Innovation tends to follow the path of least government resistance. For proof, look no further than the growth of online streaming services that are operating in a completely free market, while competing against other platforms that are regulated as if they were still monopolies from the 1990s," said Scalise. "My legislation will level the playing field so consumers can benefit from even more freedom in the video marketplace.”

Broadcasters wouldn't mind getting rid of more ownership restrictions, but getting rid of must-carry and retrans and network nondupe and exclusivity rules are nonstarters. The National Association of Broadcasters will strongly oppose the bill, according to an NAB spokesperson, as it has previous versions.

“Today’s media marketplace has never been more robust, with consumer access to broadcast programming on more platforms than at any time in history," said NAB EVP Dennis Wharton. "Unfortunately, the Next Generation Television Marketplace Act would undermine this great American success story. It would severely damage broadcasters’ ability to serve local communities and hurt tens of millions of viewers who rely every day on broadcast TV for news, entertainment and lifeline weather coverage."

But the bill has plenty of supporters.

"As the former president of an association of local TV stations, former president of network distribution for Fox, former president of the ABC Television Network, former executive VP of The Walt Disney Company and a former law professor, I write to strongly support House Majority Whip Steve Scalise’s Bill, The Next Generation Television Act," blogged Preston Padden, whose resume includes expert witness on the Hill for why the compulsory license should go.

"His Bill would repeal a steaming pile of outdated, conflicting and unnecessary government interventions into the market for distributing television programming," said Padden.

"The bill would at long last eliminate or substantially curtail legacy video regulations based on perceptions of the market in the early 1990s, or even earlier," said Free State Foundation President Randolph May. "If adopted, the NextGen TV Act would bolster free market competition and free speech in the video services market."

“The American Television Alliance, a voice for the TV viewer, commends Congressman Steve Scalise for his thoughtful leadership to reform and update America’s broken and outdated video laws," said the American Television Alliance, which has been advocating for major retrans reform in the face of what it says are skyrocketing broadcaster fee asks and blackouts. “The Next Generation Television Marketplace Act will jump-start and elevate a long-overdue conversation about modernizing the rules of the road for how Americans access and pay for video content. The legislation is forward-thinking, free-market oriented and pro-consumer."

"ACA applauds Rep. Scalise for introducing legislation designed to overhaul archaic media laws and policies," said ACA President Matt Polka. "The Scalise bill, to its credit, will prompt lawmakers and stakeholders to begin important conversations that should result in legislation next year that will truly serve the public interest."

“The regulations used to govern the video marketplace are out of date and no longer reflect the options and ways consumers obtain and view their content," said Verizon SVP Robert Fisher. "Congress should consider the changing technology enabled by a growing internet ecosystem as they create a new video marketplace framework....This legislation will begin the conversation to modernize our nation’s video policies as the marketplace responds to rapidly changing consumer demands.”

“Dish commends Rep. Scalise for his continued leadership on behalf of consumers," said Dish SVP Jeff Blum. "The broken retransmission consent regime is in dire need of comprehensive reform, and customers have been left paying the price through broadcaster blackouts and skyrocketing retransmission consent rates.”

“NTCA appreciates Congressman Scalise’s willingness to take on the difficult issue of updating video policy by introducing this legislation," said Shirley Bloomfield, CEO of NTCA–The Rural Broadband Association. "As consumer consumption of video continues to evolve, it is essential to examine video marketplace failures and consider updates to existing laws and regulations, especially in rural areas where many residents can’t receive broadcast signals. We look forward to engaging in this important discussion with Congress, and ultimately to the passage of legislation that will address the critical shortcomings in the existing rules governing this marketplace.”

“Charter applauds Majority Whip Steve Scalise for reintroducing the Next Generation Television Marketplace Act," the company said in a statement. "Congressman Scalise is rightly reexamining a broken system that has resulted in retransmission consent fees rising exponentially over the last decade. We look forward to working with him and his colleagues in Congress to reform the outdated rules and better protect consumers.”

WASHINTON—The American Television Alliance (ATVA) has petitioned the Federal Communications Commission to reconsider three aspects or its November 2017 order authorizing broadcasters to begin transmitting ATSC 3.0 signals.

Specifically, the petition, filed March 5, asks the FCC to reconsider its decisions:

• Not to require separate negotiations for first-time MVPD carriage of ATSC 3.0 signals;

• To permit low-power and translator stations to flash-cut to ATSC 3.0; and

• To allow broadcasters to degrade their signals without first warning viewers and MVPDs.

The ATVA petition argues that if the transition to ATSC 3.0 is “to be truly ‘voluntary’ for all parties,” carriage of Next-Gen TV signals should not be obtained “by threatening existing television service.”

[ATSC 3.0 Marches On]

“We believe that the best and most effective way to prevent broadcasters from engaging in such conduct is to require separate negotiations for first-time carriage of ATSC 3.0 signals,” the petition said.

ATVA previously predict this situation based on what it described as “broadcasters’ demonstrated conduct” under different circumstances, such as the forced bundling of unwanted programming. Since then, there have been “a handful of cases” in which broadcasters began doing so even before the ATSC 3.0 authorization order was released, it said.

Some MVPDs already “have been forced to grant ‘ATSC 3.0 MFNs [most favored nation status]’ for a technology that is not yet commercially available,” the petition added.

Regarding low-power and TV translator flash-cutting to ATSC 3.0, the ATVA has “never agreed with the notion of exempting” these stations from the requirement to simulcast ATSC 1.0 and 3.0,” the petition said. Doing so “causes exactly the same harm as does allowing full-power station to flash cut,” according to ATVA.

ATVA argued that narrow waivers are a better way to address low-power concerns with simulcasting “than a broad, class-based exemption” and that “narrow waivers of the simulcasting coverage requirement would address nearly every reason” given to exempt these stations from the simulcast mandate, it said.

One circumstance “appears unamenable to relief” offered by coverage requirement waivers, however, the petition noted. It involves situations in which a low-power station is displaced in the repack and forced to build both ATSC 1.0 and 3.0 facilities, it said.

“Even here, however, a broad exemption for all low power stations is not required,” it said, adding that individual waivers of the simulcasting requirement is a better option.

As relates to degrading the broadcast signal without warning, ATVA acknowledges that no current FCC rule prevents a broadcaster from dropping HD service in favor of SD. “Yet, in the normal course, broadcasters have wanted to transmit in high-definition and had no incentive to cease doing so,” the petition said.

[HPA Panel Examines Road to ATSC 3.0 and Repack]

However, as broadcasters transitioning to ATSC 3.0 are required to simulcast, they will have “a new and specific incentive to degrade their signals.” Broadcasters “have insisted throughout this proceeding that they must be able to do so in order for the ATSC3.0 transition to succeed,” the petition said.

ATVA described the ATSC 3.0 transition as a “special case” and called for the FCC to “insist on simple notification rules corresponding to the unique circumstances presented.”

Dennis Wharton, EVP, Communications at NAB, downplayed the ATVA petition. “The cable industry is trotting out the same arguments the FCC already rejected,” said Wharton. “It’s no secret broadcast industry innovation is great for consumers, but bad for cable. So it’s no surprise they continue to oppose a competing industry’s willingness to invest in its product.”

Editor’s note: All emphasis (italicized text) is the ATVA’s.

For a comprehensive list of TV Technology’s ATSC 3.0 coverage, see our ATSC3 silo.