FCC Seeks Input on Regional Sports Network Marketplace

The Federal Communications Commission's Media Bureau seeks comment on issues related to regional sports network (“RSN”) access and carriage in order to prepare a report.

The FCC prohibits Time Warner Cable and Comcast from entering into any exclusive distribution agreements with existing and future affiliated RSNs and unduly or improperly influencing the sale of the programming of those RSNs to unaffiliated multichannel video programming distributors (“MVPDs”). The companies are also required to provide the programming of affiliated RSNs to all MVPDs pursuant to non-discriminatory terms and conditions. Moreover, the FCC applied the program access rules applicable to satellite-delivered, cable-affiliated programming to all of the Applicants’ affiliated RSNs, regardless of the method of delivery. However, the FCC partially exempted Comcast’s SportsNet Philadelphia from these requirements given that it was delivered terrestrially before being acquired by Comcast, and therefore the method of delivery was not chosen for anticompetitive purposes. Finally, the FCC implemented a dispute resolution process allowing aggrieved MVPDs and unaffiliated RSNs respectively to submit program access or carriage disputes with the Time Warner and Comcast to an arbitrator.

The FCC seeks comment generally on issues related to RSN access and carriage. What effect, if any, have marketplace and program access rules revisions had on MVPDs’ ability to gain access to RSN programming? Similarly, what impact have regulatory and marketplace changes had on the ability of unaffiliated RSNs to gain carriage on MVPD systems? Has there been an increase in the delivery of RSNs by terrestrial means? In addition, has the number of RSNs affiliated with a cable operator changed? If there has been a change, how does this number compare with the overall number of RSNs in the marketplace? Are there examples since the release of the Adelphia Order involving the withholding of an RSN and what impact has this had on the MVPD marketplace? Further, has there been a change in the number of exclusive deals involving MVPDs and unaffiliated RSNs?

Moreover, the FCC seek comment on the access of MVPDs, other than the Applicants, to RSN programming in which the Applicants hold an interest. We also request comment on whether unaffiliated RSNs have obtained carriage on the Applicants’ cable systems and on what terms. Finally, we seek comment on the Applicants’ compliance with the Adelphia Order’s RSN conditions, the dispute resolution process and the effectiveness of these remedies. Do such conditions continue to be necessary in light of marketplace and regulatory changes since the time of their adoption?