On the same day Mediacom completed the deal, it sent a blistering letter to a leading U.S. senator, charging that the retransmission consent movement is "harm(ing) the public interest" -- and seeking legislative intervention.
The letter from Mediacom Communications CEO Rocco Commisso to Massachusetts Sen. John Kerry, chairman of a communications subcommittee, asks the senator to find a way to ensure that station groups do not continue their threats to pull stations off the air unless they get desired retrans carriage fees.
"If consumers are to be protected in the long run, not just for a period of weeks or months, it is essential that the existing retransmission consent rules be thoroughly examined and reformed," Commisso wrote in the letter.
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"Consumers," the CEO added, "are being harmed both by the uncertainty created by broadcasters' threats to allow their signals to 'go dark' and, over the longer term, by ... increased costs." If cable operators continue to pay higher retrans fees, consumers could face higher cable bills, Commisso indicated.
Terms of the Sinclair/Mediacom deal were not disclosed, except that Mediacom has agreed to drop an FCC complaint against Sinclair.
Some 600,000 Mediacom customers could have been affected if Sinclair had opted to pull its stations as the two sides battled over how much Mediacom would compensate Sinclair for carriage rights.
Cable companies should NEVER pay broadcasters a dime!
Why, you ask?
Because of 4 simple, powerful reasons:
1. Broadcast programming is available over the air for FREE; cable customers should not be charged for it when it is freely available to others. 2. Cable delivers broadcast programming with a better signal over a larger area than most stations would otherwise have; so there is a strong argument that broadcasters should pay the cable companies. 3. Other "cable" networks give the cable companies 2-3 minutes of avails per hour to make back programming fees. If broadcasters want fees/payments, they must give the cable companies the same commercial avails to sell. 4. Broadcasters take money away from cable copmanies by selling local ads that run on the cable systems. If broadcasters want fees FROM cable, they should stop selling ad time AGAINST cable.
If broadcasters want to be cable networks, then fine. (See rules above.) Hey, the "cable" model doesn't seem to be broken.