Cable Operator Calls for Tax to Aid TV Stations

WILLNER CALLS FOR TAX TO AID TV STATIONS
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
On Monday, Insight Communications CEO Michael Willner said a federal tax designed to subsidize local TV stations should replace the current system that allows TV stations to help their finances by demanding cash for carriage from cable operators. Willner said his TV tax proposal would ensure a second revenue stream for broadcasters while relieving cable operators from having to pay for programming that is offered to the public free-of-charge. Willner indicated that the TV tax would fund a federal royalty pool, similar to the one used to compensate sports leagues and Hollywood studios. Insight is the ninth-largest U.S-based cable operator, with 1.3 million subscribers, mostly in the Midwest. National Association of Broadcasters executive vice president of communications Dennis Wharton called the proposal “laughable” and said the “NAB isn't interested in raising taxes on American citizens.” ("Cash is nice," he added, "but there's always so much more to do with that free spectrum and cable bandwidth.")
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