A coalition of pay-TV companies is throwing the challenge flag over NBC’s decision to stream the Super Bowl on the Web for the first time.
The American Television Alliance, a lobby group that represents cable, satellite and phone companies, argues it shouldn’t have to pay local stations more money for football games and other programming that the network is giving away online.
The group said NBC’s move undercuts demands from local stations for distributors to pay higher so-called retransmission fees to carry their signals.
It also claims that distributors are facing a rash of station blackouts on Jan. 1, when a number of three-year agreements are set to expire, if they don’t give in to stations’ demands.
“There are hundreds of agreements expiring,” said a spokesman for the group, adding that, “We see an irony in threatening blackouts while giving away the biggest event of the year, the Super Bowl.”
The alliance says blackouts are likely for Washington, DC, viewers as a result of a dispute between Time Warner Cable and small station group Cordillera Communications, and also between Hearst Television and a range of pay-TV providers.
A spokesman for NBC didn’t return a call seeking comment.
Pay-TV companies have been griping for some time about rising retransmission fees and have been pushing regulators to write new rules over how those deals are negotiated.
Envious of the fees that cable networks get from distributors, stations want to be compensated for providing popular programming, including big sports events.
Retransmission consent revenue that pay-TV companies pay broadcasters is expected to hit $1.4 billion in 2011, according to research group SNL Kagan.