A ticking time bomb in Maine Federal Court

Fenway

HF Bookie and Bruins Historian
Sponsor
Sep 26, 2007
68,917
99,438
Cambridge, MA
This case could have huge implications

Maine's cable a la carte law challenged in court

If the law is upheld, Maine would become the first state in the country to require à la carte cable selections.

That would explain the phalanx of lawyers sitting in Portland’s federal courtroom Friday when the measure came before Torreson. Ten companies have signed on as intervenors or offered friends of the court briefs in the Comcast case.

A lawyer representing Comcast told Torreson on Friday that the law would limit choices and lead to higher prices for consumers. Matthew Brill said that channels with more limited viewership would likely fold or no longer provide programming in places with à la carte systems. That would allow the more popular channels to raise prices for their programming, he said.

The Maine law “seeks to alter, fundamentally, the way cable service is provided,” Brill said. “It would upend the economics of this industry.”

But Torreson replied that it appeared to her that “the state is trying to get a better deal for customers.”

Brill said that federal rules appear to bar states and localities from imposing such restrictions on cable companies, and also said that the law would trample the cable company’s First Amendment rights to “editorial control” over what programming it offers and how it structures cable offerings.

But Christopher Taub, representing the state, told Torreson that Comcast was trying to cloak business decisions in the Constitution.

“They’re saying they have a First Amendment right to require that if a customer wants CNN, they also have to buy HGTV,” he said.

The Maine Association of Broadcasters, the National Association of Broadcasters and the Motion Picture Association have all filed briefs in support of Comcast’s challenge to the Maine law.

Suzanne Goucher, president and chief executive officer of the Maine broadcasters, said her organization’s concern is that the Maine law doesn’t exempt the basic tier of cable service, which includes local broadcast stations, from the à la carte requirement. Federal rules require cable companies to provide the basic tier as part of all cable packages.

If customers can pick and choose among local stations, she said, the concern is that they might pick only one, weakening financial support for the others.



Cable companies want judge to pause new Maine law requiring à la carte channel choices
 

LeHab

Registered User
Aug 31, 2005
15,957
6,259
What would prevent inflated prices for a la carte selection to discourage such practice?
 

mouser

Business of Hockey
Jul 13, 2006
29,353
12,727
South Mountain
Interested to see how this plays out. I'm very sympathetic to a la carte options, but I suspect the Maine law would either be preempted by existing federal statutes or could even run afoul of the Commerce Clause.
 

217 Forever

Registered User
Sep 15, 2014
2,025
99
What would prevent inflated prices for a la carte selection to discourage such practice?
The same thing that is making people cut the cord now. More competition from cheaper streaming services that offer smaller packages.
 
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LeHab

Registered User
Aug 31, 2005
15,957
6,259
The same thing that is making people cut the cord now. More competition from cheaper streaming services that offer smaller packages.

Most networks/channels are owned by a handful of media conglomerates. A lot of consolidation has been happening in this sector. Licensing to cable operators often is based on bundles to promote the entire lineup of channels. Cable operators then bundle into packages for consumers. Unless you regulate licensing fees of those media conglomerates, they can simply jack prices for a la carte licensing.
 
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