Viewability Rulemaking Notice Asks Whether to Extend 2007 Viewability Rules
The FCC sought comments on whether it should extend requirements that cable operators deliver must-carry DTV stations in analog and digital. The further notice of proposed rulemaking released Friday (http://xrl.us/bmrx7n) had been expected (CD Feb 8 p5). In it, the commission asked whether it should extend the requirement, which made sure that analog cable subscribers could still watch must-carry programming after the DTV switch, and allowed digital subscribers to watch the stations in digital. The notice tentatively concluded that FCC rules that exempt smaller cable systems from carrying must-carry stations’ HD signals should be extended.
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"The available market evidence seems to indicate that the viewability requirements remain important to consumers,” the notice said. According to NCTA data, more than 12 million households relied on analog cable delivery, the notice said: When the FCC adopted the rule in 2007, some 40 million cable subscribers bought analog-only cable. Meanwhile, most cable subscribers have hybrid analog-digital systems and may rely on analog service to reach a secondary or tertiary TV set in their home, it said. The notice asked how accurate those data are and how it should affect its rulemaking.
The notice also asked whether any cable system has devoted more than a third of its bandwidth to carrying commercial TV stations. If they exceed that threshold, cable operators are allowed to choose which signals not to carry, the notice said. “We seek comment on whether the situation has changed regarding bandwidth usage and whether any cable system has reached the one-third carriage cap."
The notice also asked about the industry’s plans to move to all-digital cable systems. “According to information in the 2007 record, virtually all cable operators are planning to eventually transition to all-digital systems, regardless of our decision on the viewability rules,” it said. “How many hybrid systems plan to go all digital in the near future, and how many subscribers will be affected by this shift?” It also asked about the costs for providing digital set-top boxes for subscribers and how the uptake of digital cable has changed in the three years since the full-power DTV transition.
Extending the HD exemption for must-carry stations for another three years appears to be in the public interest, the notice tentatively concluded. FCC data indicate a large number of small cable systems are relying on the exemption, the notice said, seeking comment on its analysis of the data and asking how many smaller operators are in fact relying on the exemption. The commission also asked about cable systems that are providing some HD service but not providing all broadcast stations in that format. “Should we consider revising the exemption such that stations would be required to carry all local broadcast signals in HD if they provide any HD service,” it asked.
As a housekeeping measure, the commission also released a declaratory order saying the viewability requirements expire June 12. The original requirements were adopted before the analog TV cutoff was delayed several months from Feb. 19, 2009, to June 12, it said. Without the declaratory order, the requirements and small operator exemption would have been set to expire next week. “It is clear ... the Commission intended the rule/exemption remain in effect 3 full years from the conclusion of the transition and thus having them sunset in February 2012 would be contrary to the stated intent of the Commission,” the agency said.
The American Cable Association praised the commission for proposing to extend the HD carriage exemption for small operators, said Vice President Ross Lieberman. “The factors that warranted the exemption three years ago have not materially changed, and ACA is prepared to provide support for this statement in the record.” The NAB and NCTA had no comment.