Satellite providers side with Mediacom in Sinclair dispute

Satellite TV providers, which gained subscribers when Sinclair Broadcast Group withheld KGAN-CBS 2 from Mediacom's cable network in a previous retransmission dispute, are backing Mediacom this time around.

Thousands of Mediacom customers deserted the cable company in the dispute three years ago because they could not get CBS programming. The big beneficiaries were satellite providers.

DIRECTV Inc., DISH Network, and Insight Communications told the Federal Communications Commission in a brief filed this week they are concerned that Sinclair is negotiating both for KGAN-CBS 2, which it owns, and KFXA-FOX 28, which it operates under a management agreement.

The satellite providers said they think the FCC should look into it whether Sinclair is bargaining in good faith.

“As a legal matter, however, we appreciate the public interest concerns that arise where a single station conducts retransmission consent negotiations for more than one of the “Big Four” national broadcast networks ... in a particular market,” said a letter from the three companies.

Sinclair General Counsel Barry Faber said the company offered to let Mediacom negotiate directly with KFXA's owner, Second Generation of Iowa, but the cable company rejected the overture as a “sham.”

The retransmission agreement for both stations expires Dec. 31, and Faber is skeptical an agreement will be reached in time, which means Iowans could miss the Jan. 5 Orange Bowl featuring the University of Iowa and Georgia Tech matchup on CBS and the Feb. 7 Super Bowl, and popular programs such as House and American Idol.

Mediacom customers could prepare for the blockage by adapting their equipment for off-air reception, but that could be more difficult than last time because of the conversion to digital broadcasting.

A KGAN news report that said Sinclair was seeking 50 cents per Mediacom subscriber in the retransmission negotiations is false, Faber said on Wednesday.

Mediacom complained to the FCC that Sinclair is seeking more to retransmit its broadcast stations than similar broadcasters are seeking. Faber said the popularity of KGAN and KFXA is actually greater than many of the cable TV networks such as The Disney Channel.

The FCC has also received letters from Iowa lawmakers urging the FCC to step in to prevent consumer disruption.