Retrans Redux

Another retrans battle is heating up. This time the battleground is New York and the contestants are Cablevision and WABC-TV 7, an ABC Network O&O station. The stakes: A threat by ABC Disney to pull Cablevision’s retransmission rights on the eve of the Oscar broadcast this weekend. The usual partisan talking points are being bandied about; WABC claiming that Cablevision should “acknowledge the station’s value to their business” and come to a “fair agreement” while Cablevision claims WABC is holding “Cablevision customers hostage by forcing them to pay what amounts to a new TV tax”, while urging ABC Disney to work with them to “reach a fair agreement.”

As is often the case, the truth lies somewhere in the middle. Most interesting in a statement from WABC Pres/GM Rebecca Campbell earlier this week, she referred to the fact the “viewers can watch their favorite ABC7 shows free, over-the-air, or by switching to one of Cablevision's competitors.” No surprise that competitors are mentioned, but to bring up “free over-the-air” to remind customers that ABC is asking Cablevision to pay for what is available free? Most curious.

So the battle lines are drawn and we all wait to see what will happen next. Who will be the first to blink? Will it go down to the wire or beyond? What New York politician will be the first to urge the parties to come to an agreement? One thing is for sure, whether WABC goes dark on Cablevision or not, eventually the parties will work out a deal and both sides will claim victory as if retrans is a zero-sum game. WABC will say the retrans regime is not broken and the market works, and Cablevision will increase its subscription rates to cover the additional cost. It’s like a remake of a movie with a stale plot.