ACA blasts broadcast consolidation in Tucson

Just two days after some small cable operators, Dish Network (Nasdaq: DISH) and Time Warner Cable (NYSE: TWC) warned the FCC about the harms of TV station consolidation, top broadcasters in Tucson, Ariz., announced a deal that will result in layoffs and potentially increased retransmission-consent fees for pay TV providers.

The shared services agreement that Raycom Media and Belo Corp. announced Wednesday will see Raycom operate three local TV stations, including CBS and Fox affiliates. In addition to sharing news operations, the deal could give Raycom more leverage to push for increased fees in retransmission-consent deals with cable and satellite affiliates that combine all three stations.

Cox Communications, which provides cable TV service to Tucson and surrounding areas, is the operator that could be impacted most by the deal.

The American Cable Association (ACA), which teamed up Monday with Time Warner Cable and Dish Network to warn the FCC about the drawbacks of some of its media ownership rules, blasted the Raycom - Belo deal.

"With breathtaking disdain for the public interest, Raycom is seizing effective control of Tucson's CBS and Fox affiliates just as the FCC is about to release a notice of proposed rulemaking asking to what extent such deals violate the ban on consolidation among the top four local stations," ACA President Matt Polka said in a prepared statement. "As we've seen elsewhere, SSAs [shared services agreements] are strong indicators of bad news to come, including higher retransmission consent fees; higher advertising rates; less competition, localism and diversity; and job loss among news reporters and production employees," he added.

ACA, Dish, Time Warner Cable and other providers that are pressing the FCC to reform its retransmission-consent rules could use the Rayco - Belo deal as a prime example of the negative impact broadcast consolidation can have in local markets.

For more:
- see ACA's statement
- TVNewsCheck has this article

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