TV marketplace modernization necessary for AAPI businesses and consumers

Congress’ failure to pass a comprehensive reauthorization of the Satellite Television Extension and Localism Reauthorization Act (STELAR Act) last year underscores the serious need to modernize the American television marketplace in order to protect consumers and businesses, including Asian Americans and Pacific Islanders.

For years, TV broadcasters have gotten away with imposing massive, continuous increases in retransmission fees. These are the fees satellite providers pay in order to rebroadcast what would otherwise be readily accessible, over-the-air content for communities that may not otherwise have access a major broadcast network. Sadly, among the most vulnerable are residents of rural areas where AAPI individuals and communities rely on staying connected through whatever means possible.

Since 2006, these retransmission fees have skyrocketed from roughly $215 million to $11.7 billion-increasing by more than 5,000 percent. These rising costs are directly transferred to American consumers and small businesses, causing TV bills to increase exponentially-all despite the fact that demand for broadcast television content is on the decline.

When their demands are not met, broadcasters have notoriously weaponized TV blackouts; withholding content like live sporting events and other must-see TV. These blackouts have a detrimental affect not only on consumers but also small, AAPI-run businesses like bars and restaurants that rely on televising such programming to attract and entertain customers.

A comprehensive reauthorization of STELAR would have been the perfect opportunity for lawmakers to stand with these businesses and consumers. Instead, Congress allowed the STELAR Act to sunset for all but a single company — which shows just how far federal lawmakers are willing to let broadcasters go to maximize their profit at the expense of Americans.

For all of these reasons, OCA believes it is time to reform the U.S. television marketplace to reflect the current media landscape and protect American consumers and businesses from broadcasters’ unscrupulous practices. Since it could not materialize last year, Congress should make efforts to modernize the TV marketplace one of its priorities in 2020.

As a starting point, lawmakers should give serious consideration to the recent from U.S. Representative Anna Eshoo (D- CA) and House Republican Whip Steve Scalise (R-LA)-known as the Modern Television Act of 2019-would help by repealing outdated laws and regulations, including retransmission consent.

It’s time for Congress to show where they stand: on the side of American consumers and businesses.

Originally published at https://www.ocanational.org in November 2019.