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DirecTV Defiant On SportsNet LA Carriage Impasse As Pressure Builds For TWC

DirecTV "refuses to back down" in its carriage standoff with Time Warner Cable over the Dodgers-owned Time Warner Cable SportsNet LA, according to Ted Johnson of VARIETY. DirecTV yesterday in a statement "again pushed Time Warner Cable to agree to a deal in which DirecTV could offer the games ala carte to its customers." DirecTV "isn’t alone in putting the blame on Time Warner Cable." FCC Chair Tom Wheeler yesterday in a letter to TWC Chair & CEO Robert Marcus wrote that he "was encouraged by TWC’s willingness to end the TV blackout but 'troubled by the negative impact that your apparent actions are having on consumers and the overall video marketplace.'" Wheeler "also chided" TWC "for ignoring calls" from L.A. Mayor Eric Garcetti and California Attorney General Kamala Harris to resolve the impasse (VARIETY.com, 7/29). The WALL STREET JOURNAL's Tom Gara notes while the FCC’s authority "regarding these kind of distribution negotiations is limited to ensuring both sides act in good faith, it also has a much broader mandate to ensure the availability and update of broadband." Wheeler "appeared to hint at such powers" in the letter, "hinting at a much wider set of options for FCC intervention if the cable giant fails to strike a deal with its pay-TV competitors." A TWC spokesperson said, "We hope that Chairman Wheeler is making similar inquiries of DirecTV and other L.A. television distributors to determine their rationale for refusing to carry SportsNet LA" (WALL STREET JOURNAL, 7/30).

ALL SIZZLE, NO STEAK? In L.A., Joe Flint in a front-page piece writes, "Despite the heat from politicians and regulators, industry observers don't see the showdown ending any time soon, viewing Time Warner Cable's willingness to submit to binding arbitration as little more than a public relations ploy." DC-based PR firm Ervin Hill Strategy President Dan Hill said, "It certainly has the look of that." Hill said agreeing to arbitration "releases some of the pressure on them." Flint writes few who have been following the situation "expect DirecTV to submit to binding arbitration." Desser Sports Media President Ed Desser said, "I don't think it changes anything. DirecTV has the leverage right now." Flint: "Even coming to terms on how the arbitration would proceed could prove to be too much of a challenge" (L.A. TIMES, 7/30).

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