• by Wayne Friedman , July 9, 2008

A collision between expiring retransmission agreements and the conversion to digital signals this winter could create major confusion for consumers, according to a cable TV trade group.

So the American Cable Association, which represents a group of small cable operators, has called for a "quiet period" of retransmission deals. It wants to ensure that stations and cable operators are not left in the lurch during technical changes. Retransmission agreements have cable operators paying for broadcast signals to TV station owners.

The FCC mandated change of stations moving to digital from analog will occur Feb. 17, 2009.

The ACA is already making some headway -- at least with the ABC TV stations. That station group won't ask for retransmission fees for three years from small- to medium-size cable operators. But these deals are focused on some operators that are financially weaker than bigger cable system companies.

In return, Disney-ABC Television receives some preferential treatment when it comes to how some of its cable networks are run on cable systems. For example, ESPN channels would be grouped together. Collectively, small cable operators represent 91 of 113 of all cable operators where ABC stations run.

In filing comments to the Federal Communications Commission, the ACA has successfully waged a campaign showing smaller cable operators have it financially tougher when paying higher retransmission fees versus bigger cable operators with more leverage.

The ACA also notes some 3,000 to 5,000 retransmission agreements for small- and medium-size independent cable systems are set to expire on Dec. 31. The trade group asks for a moratorium on retransmission deals to run from Dec. 31, 2008, until May 31, 2009.

Preston Padden, executive vice president of government relations for Disney-ABC Television, said in a statement: "We are very pleased to support our smaller affiliates with this offer."