Retrans Fees Skyrocket

Consumers Will Continue Paying the Price

WASHINGTON, D.C. May 25, 2011 Research recently released by two different groups shows that retransmission fees paid to broadcasters continue to skyrocket and one of the groups, the American Consumer Institute Center for Citizen Research concludes that “consumers are the big losers…both by potential blackouts and paying higher prices for years to come.”

The consumer group says that broadcaster market power over pay-TV providers is resulting in price increases “at least four times the rate of inflation.”  The group’s “Consumergram” concludes that “regulations that provide broadcasters an upper hand in negotiation are no longer needed, and are in fact are counterproductive to consumer welfare.”

Another recent report, from SNL Kagan, says retransmission fees reached $1.14 billion in 2010 and could rise to $3.6 billion by 2017.

How much more will retransmission fees have to escalate before the FCC and Congress finally fix this broken system and protect consumers?