Oregon Media Insiders

Bend's The Source has a long article this week from a couple of weeks ago on all the storm und drang surrounding the purchase of Fox affiliate KFXO by Missouri-based News Press Gazette, the owner of cross-town rival KTVZ. You may recall that Bend Broadband is opposing the purchase, for reasons no one really could determine. The Source story tries to find out why:

A clue to Bend Broadband’s motivation might be found in a gathering media storm over retransmission agreements, the handshake deals that allow cable providers to carry local network stations at no cost.

At the same time cable providers like Bend Broadband are under attack from digital satellite TV providers. On a national level DirecTV has aligned itself with phone giant Qwest to bundle TV, high speed Internet and phone service. But in small markets like Bend cable providers have traditionally had an edge because of their ability to carry local network television stations. It’s been a win-win for both parties. Cable providers get a few more channels to offer as part of their package to customers and broadcasters reach thousands of more homes than they would with a signal beamed from a hillside.

However, broadcasters are rethinking their long simpatico relationship with cable. One of the country’s larger broadcasting syndicates, Sinclair, yanked more than 20 of its stations from a smaller East Coast cable provider earlier this winter during negotiations over retransmission. Instead of nothing, Sinclair wanted millions of dollars for the right to retransmit in multiple markets. The case caught the attention of Congress and the FCC. Recently, the two companies agreed to a new retransmission contract for an undisclosed amount. In the meantime, Sinclair, which as it happens was the station that ran the Swift Boaters anti-John Kerry TV movie Stolen Honor and refused to air the Nightline episode that marked the death of more than 700 soldiers in Iraq, has forced negotiations on retransmission with cable behemoths Comcast and Time Warner. Earlier this week, Sinclair officials said they expect to collect nearly $50 million in retransmission fees from cable and satellite providers, according to the industry site tvpredictions.com.

Its aggressive and, apparently, successful tactics caught the attention of the cable industry.

Locally, it could be a strong motivator for Bend Broadband to fight the sale. With two stations under its belt, NPG would have more leverage to negotiate a retransmission fee – something that would impact the local cable provider’s bottom line.

Tykeson said she followed the Sinclair case closely and is concerned about its implications for the cable industry. But she said her company’s opposition to the NPG-Meredith deal isn’t a direct response.

Interesting take on it by The Source. The only local owner I know of who's tried this tactic is Belo, and I've been watching for a retransmission fight from that corner for a while. I've gotten pooh-poohed--"Comcast and KGW get along too well"--but Belo got an agreement out of Cox Cable, and I don't care how well the two companies "get along" or what agreements they may have NOW, when $$ are involved all bets are off.

I hear tonight from an Anonymous Insider that the sale of Meredith-owned KFXO in Bend to competitor KTVZ is on hold. The rumor is that Bend Broadband/Cable has petitioned the FCC to block the sale:

Some thought that the KFXO news department was going to shut down and Z21 would do their newscast at 10pm. So does anyone out there know what's going on? How can a cable company block a sale of a TV station?

Cablenut says anyone--cable company or otherwise--can object if they claim it creates an anti-competitive atmosphere, but neither of us are coming up with a plausible reason why a cable company would do that. That doesn't mean the rumor isn't true, just that apparently there are limits to our deviousness. Imagine.

So, anyone got the skinny? Utterly Boring, are you out there?