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Questions and Answers About The Dispute Between Sinclair/Wnwo and Buckeye Cablesystem

This dispute exists because Sinclair Broadcast Group, which owns WNWO, is demanding over $2.8 million per year in retransmission fees from Buckeye CableSystem to carry the WNWO channel - a more than 9-fold increase from the $350,000 paid in 2013. Buckeye argues this large increase is unjustified given WNWO's low viewership compared to other major channels in the market. If Buckeye agrees to Sinclair's demands, it would result in higher cable rates or reductions in other areas. Both sides disagree on fair compensation for WNWO given its availability and viewership.

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34 views

Questions and Answers About The Dispute Between Sinclair/Wnwo and Buckeye Cablesystem

This dispute exists because Sinclair Broadcast Group, which owns WNWO, is demanding over $2.8 million per year in retransmission fees from Buckeye CableSystem to carry the WNWO channel - a more than 9-fold increase from the $350,000 paid in 2013. Buckeye argues this large increase is unjustified given WNWO's low viewership compared to other major channels in the market. If Buckeye agrees to Sinclair's demands, it would result in higher cable rates or reductions in other areas. Both sides disagree on fair compensation for WNWO given its availability and viewership.

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Questions and Answers About the Dispute Between Sinclair/WNWO and Buckeye CableSystem

1. Why does this dispute exist between Sinclair Broadcast Group and Buckeye CableSystem? Under the 1992 Cable Act, WNWO and Sinclair Broadcast Group are able to demand millions of dollars for allowing the convenience of their channel being included in Buckeye CableSystems line-up. 2. Do Sinclair and WNWO actually have the power to deny WNWO Channel 24 to Buckeye CableSystem subscribers? No. WNWO is available FREE over the air. Sinclair and WNWO only have the power to deny the convenience of the channel being included in the Buckeye CableSystem line-up. In fact, modern digital televisions with an antenna and a universal remote can easily and seamlessly switch between off-air and cable channels. Also, most NBC programs are available on nbc.com. 3. WDIV, NBC on channel 4 from Detroit, has always been free off the air in our area. Why isnt it available now for Buckeye CableSystems Toledo customers? The FCCs network non-duplication rule gives WNWO and Sinclair the right to block WDIVs network feed in Ohio. 4. How much is Sinclair asking for allowing a more convenient delivery of WNWO on Buckeye CableSystem? Sinclair is demanding more than $2.8 million per year. Plus, they want us to add unspecied other cable channels. This tying and bundling of channels could also cause higher rates in the future. 5. How much did Buckeye CableSystem pay to carry the WNWO in 2013? Buckeye CableSystem paid over $350,000 in 2013. For 2014 and going forward, Sinclairs most recent demands represent an increase of more than 9 fold per year. 6. What happens if we give Sinclair and WNWO what they ask? There would be about $2.45 million in additional cost that would have to be covered by rate increases, reduction in capital spending on system improvements, reduced customer service and/or reduction in charitable giving. 7. What is the major problem in this negotiation? Sinclair is demanding that we pay as much for WNWO as they are getting for successful NBC stations in other markets. They want an NBC price regardless of what the viewership of the channel actually is. Unfortunately for them, WNWO is a low-viewed, underachieving station in all day parts, so this one-size-ts-all approach just does not apply. Buckeye CableSystems offer, corrected for ratings differences might well be higher than Sinclair is getting elsewhere.

8. How does WNWO viewership compare to WTVG and/or WTOL?


WNWOs viewers are a fraction of the major stations in our market, particularly in news. We are not allowed to release the Nielsen ratings, however, our own audience measurements of Buckeye CableSystem viewership show that WTVG and WTOL average 3 times more viewer minutes. Sinclair probably could release Nielsen ratings if they wanted to, so we ask that they justify their proposed cost increase based on actual ratings.

9. Why is Sinclair so militant about this issue?


Sinclair has a record for making radical demands for outrageously high retransmission consent fee increases from cable operators all across the country. In the words of American Cable Association President and CEO Matthew M. Polka, In our view, broadcasters like Sinclair who would leave millions of consumers in the dark without notice are media malefactors who make a mockery of their legal obligation to serve the public interest, convenience and necessity.

10. Sinclair thinks that if WNWOs viewership is higher than ESPNs they should receive the same compensation. Why not?
This is an apples to oranges comparison. WNWO is free off air while ESPN is cable/satellite exclusive content. In the case of WNWO, we are paying only for the convenience of including their signal in our line-up, while with ESPN we are paying for cableexclusive content. Incidentally, we also do our best to combat ESPN and other cable/satellite channel carriage fee increases.

11. What can be done about this?


Congress and the FCC need to change the laws and regulations to stop giving an articial monopoly to one broadcast station. Congress also needs to allow different kinds of carriage such as tier or al a carte so we can create custom packages for our customers.

buckeyecablesystem.com/onyourside
for more information and alternative ways to watch NBC programming.

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WNWO NEWSPRINT Q&A 1-13.indd 1

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