FCC Forces Comcast’s Hand In MASN Carriage; Philly Left Out

FCC Ruling Affects Nationals Games On MASN

As part of the FCC’s approval of Comcast and Time Warner’s $17.6B acquisition of Adelphia, the agency gave RSNs “the right to demand commercial arbitration if they cannot resolve” carriage disputes, according to Mohammed & Heath of the WASHINGTON POST. The action “does not guarantee that the 1.3 million Comcast subscribers in the [DC] area will be able to see Nationals games, but it dramatically strengthens the hand of MASN.” MASN attorney David Frederick: “We would welcome the opportunity to speak with Comcast at the first opportunity to reach a distribution agreement so that arbitration is not necessary.” Other merger conditions imposed by the FCC require Comcast and Time Warner to “make most of their own [RSNs] available to their competitors,” including Dish Network and DirecTV. If the sides “cannot come to terms, the other video providers would have the right to demand arbitration” (WASHINGTON POST, 7/14).

MASN: MASN representatives “believe they have an edge during an arbitration proceeding, because they would point out five other cable providers carry the network on terms identical to those offered to Comcast.” Economist Hal Singer, who helped write MASN’s complaint to the FCC, said, “We think Comcast would be in an awfully bad position. We’re not far from carriage” (WASHINGTON TIMES, 7/14). In Baltimore, Jeff Barker notes the deal also affects Orioles fans, because MASN “plans to begin telecasting Orioles games when the club’s deal with Comcast SportsNet expires at the end of this season.” FCC Commissioner Michael Copps, the lone dissenter in the 4-1 vote to approve the merger, said allowing MASN to force arbitration with Comcast “is the right thing to do. Many members of Congress agree.” The FCC acted after U.S. Reps. Tom Davis (R-VA), Jim Moran (D-VA) and Albert Wynn (D-MD) suggested to the FCC last month “that arbitration be used to resolve the television stalemate” (Baltimore SUN, 7/14).

PHILLY: The POST’s Mohammed & Heath report the FCC “carefully excluded Philadelphia” from the condition that forces Comcast to make Comcast SportsNet available to DirecTV and Dish, “meaning Comcast can continue to shut out the two satellite companies from access to Comcast SportsNet Philadelphia, which broadcasts most of the Phillies, Sixers and Flyers games” (WASHINGTON POST, 7/14). While DirecTV said that it was “pleased that the cable companies generally will have to share sports programming,” DirecTV VP/Government Relations Susan Eid said that the “inability to get sports in the Philadelphia market hurts the satellite companies.” She said that DirecTV and Dish “have less than 10[%] of the Philadelphia market, compared with 26[%] nationally.” Copps said the deal “inexplicably leaves out Philadelphia.” Media Access Project President Andrew Jay Schwartzman, comparing the DC and Philadelphia situations, said, “There is no principled distinction I can discern between the two situations” (PHILADELPHIA INQUIRER, 7/14).

REAX: Stifel Nicolaus & Co. analyst Blair Levin: “It’s a mixed day for the cable guys. They got it done, but they don’t like the conditions” (L.A. TIMES, 7/14).