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free HD antennas to those looking for relief from high TV bills.
It’s ironic that local broadcasters promote free TV, yet they
charge viewers who don’t use an antenna. In fact by charging
retransmission fees, they’re a top culprit in creating expensive
TV bills.
Local broadcasters began demanding retransmission fees in
2009. Prior to that time, Alliance Cable TV customers weren’t
charged anything to receive local channels, but now broadcast-
ers have decided to take full advantage of this regulation-backed
revenue-generating opportunity. Consumers pay billions of
dollars in retransmission fees every year. Have you seen enough
improvements in local broadcasters’ services, quality or content
to justify those fees?
Why Do Blackouts Happen?
Broadcasters often have a take-it-or-leave-it attitude during nego-
tiations, and they will put you in the middle of this fight. During
contract renewals, broadcasters typically want 1) drastically
higher fees, and 2) heavy restrictions on consumer choice. We
simply want broadcasters to charge fair rates, and we want them
to allow to you purchase only the channels you want.
If we don’t agree to their demands, however, broadcasters will
initiate a blackout. They will require Alliance to remove their
channels from your lineup, preventing you from viewing their
programming. This is designed to get you angry, which broad-
casters hope will pressure us into accepting their demands.
SoWhy Haven’t Retransmission Rules Been Updated?
Broadcasters have lobbied hard to keep current Retransmission
Consent rules in place because it’s an easy way for them to gener-
ate quick cash. Despite tremendous innovation in how consumers
watch video, the rules governing the video marketplace haven’t
changed since 1992. Congress and the FCC made some attempts
to address this issue in recent years, but they haven’t made any
changes that benefit consumers.
What’s Next?
Alliance Communications has been advocating for local choice
and à la carte programming for some time now. Regulations and
contracts, however, prevent us from giving you flexibility with
your programming. I hope Congress and the FCC will step in
and provide some relief during our next round of negotiations.
Alliance Communications wants to reach a reasonable agree-
ment with KELO-CBS, KSFY-ABC, KCAU-ABC and KDLT-NBC
prior to the end of the year. We will update you as this process
continues, and we will work diligently on your behalf to keep
costs down. Because of these broadcasters’ national reach and
ownership platform, Alliance is even considering joining a
national group to negotiate these fees.
If you’re looking for alternative viewing options, you might want
to consider an over-the-air HD antenna. Alliance also offers the
Limited Choice package, which contains just the local networks
and a few other channels for $9.95/month plus the retransmission
fee of $11.21 in South Dakota and Minnesota and $12.51 in
Iowa. In addition, you can watch many TV shows
on Internet streaming services. We can
help you select the right
Internet package to
ensure you have an
enjoyable viewing
experience. We’re
also researching
options for offering
you programming
choices with or with-
out local broadcast
channels.
Stay tuned. We
appreciate your
business, and we’ll
keep you updated
over the next few
months.
Rise of Retransmission Fees