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FCC's Martin calls for further study on 70% cable ruling
In the end, much of the hype surrounding the FCC's meeting this week amounted to nothing. After a delay of almost 12-hours, the meeting opened with a diminished agenda. Even before Tuesday, an item that would have forced broadcasters to lease digital spectrum was struck from the program. This motion drew fire from minority interest groups as media "sharecropping." And once the meeting finally started, the hits just kept coming. Most significantly, Martin was forced to retreat from the 70% cable penetration he had touted earlier. The majority of FCC commissioners are now seeking to incorporate industry data into the figures, supplementing the "accurate but unreliable" information provided by Warren Communications News.
FCC's Martin encounters resistance to 70-percent ruling
It's no secret that FCC Chairman Kevin Martin has big plans for tomorrow's meeting of the FCC. There are several proposals on the agenda that will impact on the cable industry if passed, but the most ominous for the cable industry is the imposition of the "70% rule." This bit of legislation grants the FCC more regulatory power over cable operators and programmers if cable penetration in the U.S. reaches 70%. Martin has cited a figure of 71.4% from an annual publication put out by Warren Communications News, but that number is couched with claims that the measurement is "accurate but not reliable" due to incomplete information disclosed by some cable operators. With a disclaimer like that, it's no wonder that the majority of FCC members have sought out external validation on the numbers. Lo and behold, a Wall Street analyst has emerged to say the figure is no higher than 60.5% based on SEC filings of the eight publicly traded operators. Expect some back-and-forth over the numbers tomorrow!
