Jan. 22, 2010

Comcast to fight FCC ruling on sports telecasts

By Bob Fernandez
Philadelphia Inquirer Staff Writer

http://www.philly.com/philly/business/82341347.html


Comcast Corp. isn't surrendering its regional sports network to DirecTV 
and Dish Network without a fight.

A day after the Federal Communications Commission closed the 
"terrestrial loophole" that keeps Comcast SportsNet off satellite TV, 
company executive David L. Cohen said Comcast would challenge the FCC 
action in an administrative process at the federal agency.

DirecTV and Dish Network still must show that Comcast's exclusive right 
to the Phillies, Sixers, and Flyers through Comcast SportsNet has hurt 
them competitively, which Cohen says is not a slam dunk. He spoke on 
WIP-AM (610) sports radio.

Comcast also will tie the issue to DirecTV's Sunday Ticket package of 
out-of-market football games, Cohen said on the radio.

Cohen said the federal agency should look at DirecTV's deal with the 
National Football League, which he called "the most valuable exclusive 
in sports today."

DirecTV spokesman Robert Mercer said the comparison was misleading 
because "out-of-market games are not the same as home-team games," which 
he said were critical for local subscribers.

Given the potential for legal action, the FCC decision on the loophole 
could be "a full-employment act for lawyers," quipped Cohen, an 
executive vice president and lawyer.

The FCC said Wednesday that a satellite provider could file a complaint 
with the federal agency to show it has been hurt by Comcast's 
withholding Sixers, Flyers, and Phillies games. After a successful 
review, the federal agency could force Comcast to reach a carriage deal 
for Comcast SportsNet.

Comcast has said for years that because it distributes Comcast SportsNet 
on land-based, or terrestrial, telecom wires, it does not have to upload 
the games to a satellite.

One Wall Street analyst estimated Wednesday that the exclusive rights to 
Comcast SportsNet boosts Comcast's subscriber base by 450,000 customers 
in the Philadelphia region. Those are the people who would order 
satellite TV with Comcast SportsNet.

Comcast claims the data on a competitive disadvantage for satellite 
companies are not so convincing.

In an FCC filing Jan. 13, Comcast noted that satellite-TV penetration in 
the Philadelphia market rose to 14.4 percent of homes in 2009 from 3.9 
percent in 2002 without the satellite companies' offering Comcast SportsNet.

In addition, Comcast said satellite-TV penetration in the Philadelphia 
area was roughly the same as in some other big-city markets where 
satellite companies offer regional sports networks.

Satellite penetration in 2009 was 12.9 percent in New York, 14.6 percent 
in Boston, and 16.5 percent in Baltimore.

Mercer said many factors led to satellite-TV penetration in a 
metropolitan area.

-- 
================================
George Antunes, Political Science Dept
University of Houston; Houston, TX 77204
Voice: 713-743-3923  Fax: 713-743-3927
Mail: antunes at uh dot edu

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