So is network TV on cable different from the local OTA broadcast? If network TV is free OTA then why do cable companies have to pay to rebroadcast it? Wouldn't in be in the network's best interest to get their broadcasts in front of as many people as possible? It seems like blackouts would just be reducing their ratings numbers and thus reducing what they can charge for ads.
Cable companies used to just pull in the local feed, and push that out over their network. The local broadcasters called foul, and got Congress to enact a law (1992 Cable Act) that required cable companies to obtain permission to rebroadcast these public signals.[0][1] This quickly resulted in broadcasters charging ever increasing rates to deliver their content to their own viewers.
I guess established Broadcast Networks were afraid of increased competition from Cable TV Networks and got the Retransmission Consent provision added to the Cable Television Consumer Protection and Competition Act because otherwise Cable TV Operators would be able to rebroadcast their stations freely which would only encourage adoption of Cable TV? It was sort of a win win for Broadcast Networks regardless of whether Cable TV succeeded for failed.
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So is network TV on cable different from the local OTA broadcast? If network TV is free OTA then why do cable companies have to pay to rebroadcast it? Wouldn't in be in the network's best interest to get their broadcasts in front of as many people as possible? It seems like blackouts would just be reducing their ratings numbers and thus reducing what they can charge for ads.
What am I missing?
Cable companies used to just pull in the local feed, and push that out over their network. The local broadcasters called foul, and got Congress to enact a law (1992 Cable Act) that required cable companies to obtain permission to rebroadcast these public signals.[0][1] This quickly resulted in broadcasters charging ever increasing rates to deliver their content to their own viewers.
[0]https://en.wikipedia.org/wiki/Retransmission_consent
[1]https://en.wikipedia.org/wiki/Cable_Television_Consumer_Prot...
I guess established Broadcast Networks were afraid of increased competition from Cable TV Networks and got the Retransmission Consent provision added to the Cable Television Consumer Protection and Competition Act because otherwise Cable TV Operators would be able to rebroadcast their stations freely which would only encourage adoption of Cable TV? It was sort of a win win for Broadcast Networks regardless of whether Cable TV succeeded for failed.
For OTA you're missing a 1992 federal law[1] that requires the cable companies to get licensing for retransmission of those stations.
[1] https://en.wikipedia.org/wiki/Cable_Television_Consumer_Prot...