NAB: FCC Should Look at 'Collusive' Cable Ad Sales

NAB's Gordon Smith

In the spirit of the best defense is a good offense, the National Association of Broadcasters wants the FCC to look into cable ad buying consortia it argues are collusive arrangements that allow them to game the system and charge above-market rates, according to Broadcasting And Cable.

Cable ops brand the NAB effort as 'desperate.'

Cable operators have been cheering on an FCC proposal to limit TV station joint sales agreements (JSAs), which they see as a way to unfairly coordinate retrans negotiations, and seeking similar help in Congress, while broadcasters have been arguing that the arrangements are beneficial and should not be circumscribed because they promote localism by "increasing broadcast programming, especially local news, supporting the development of diverse and niche programming, and encouraging technological investment."

"We believe that collusion in the pay-TV advertising business deserves better oversight from the FCC," said NAB president Gordon Smith.

In a filing with the commission, which is preparing to vote March 31 on limiting JSAs, NAB pointed to interconnects as evidence that broadcasters faced their own coordinated competition, but did not specifically ask it to look into the practice.

But NAB said Wednesday the FCC needs to investigate.

Read More Now