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Networks, Stations Aligned

Broadcasters Tout Their Lobbying Flexibility, Unity Among Networks, Stations

LAS VEGAS -- “It feels great to be back,” as a member of NAB, said CBS CEO Leslie Moonves during an on-stage conversation with association President Gordon Smith at the NAB convention Tuesday. “At the time we left, there really was a rift between what some of the stations wanted to do and what the networks were doing,” Moonves said. “And now some of those issues look rather trivial.” Before rejoining NAB, Moonves said “I looked at how the cable people were operating [their trade association] and they were operating with a bigger voice than we were, and I said, ’there was something wrong about this.'"

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Moonves said he was impressed with Smith’s speech at last year’s NAB show, which addressed “all the issues that are important to us” at CBS, Moonves said. “I'm glad Fox joined as well. I think we are unbelievably powerful now.” NAB has changed its perception in Washington in the last year, Smith said. “Until last year, NAB was viewed on Capitol Hill as the ‘House of No’, almost no matter the issue,” he said. “I have got to tell you as a former legislator, that is not a strategy for long-term success. … With this new flexibility, we now find ourselves in a position of greater strength and credibility among policymakers."

Smith has “repositioned NAB in Washington as an organization that is reasoned, effective and willing to engage in discussions and have constructive dialog on key policy issues,” said Joint Board Chairman Steve Newberry. Smith is “leading us to success with a more focused set of priorities,” Newberry said. Beyond protecting TV spectrum (see separate report in this issue), those priorities include preserving retransmission consent and protecting radio stations from paying higher royalties.

On the radio royalty bill, “our objective was to make sure that if something passed, it provided a bright future for radio,” by seeking a provision to put FM receivers in all future cellphones, Smith said. “In the end, the record labels rejected our offer, but the performance tax bill also died,” he said. “We remain open to discussions.

The FCC shouldn’t meddle with retrans rules, Moonves said. “It’s not their battle.” It’s important that broadcasters remain united, despite potential disagreements over payments from TV station groups to networks, he and Smith said. “We need a very healthy affiliate body” to continue to provide high-quality, expensive programming, Moonves said. “We need help, and what’s great is our affiliates are acknowledging that and we've been able to make a number of deals and do it quietly.”