Comcast 2015 Annual Report Download - page 24

Dual Network Rule
The four major broadcast television networks – ABC, CBS, Fox and NBC – are prohibited from being under
common ownership or control with another of the four.
Must-Carry/Retransmission Consent
Every three years, each commercial television station must elect for each cable system in its DMA either
must-carry or retransmission consent. A similar regulatory scheme applies to satellite providers. For the cur-
rent period, which ends on December 31, 2017, all of our owned NBC broadcast television stations and our
owned Telemundo broadcast television stations elected retransmission consent.
In enacting the STELA Reauthorization Act of 2014, Congress modified certain aspects of the compulsory
copyright licenses under which satellite providers and cable operators retransmit broadcast stations. As
directed by this legislation, the FCC is reviewing aspects of the requirement that commercial television sta-
tions and multichannel video providers negotiate retransmission consent agreements in good faith. Congress
also is considering legislation that would eliminate or modify the must-carry and retransmission consent
regime. Under conditions imposed in the NBCUniversal Order, multichannel video providers may invoke
commercial arbitration to resolve disputes regarding carriage of our owned local broadcast television stations.
Internet Distribution
The NBCUniversal Order and NBCUniversal Consent Decree establish certain obligations and restraints
concerning distribution of our content online. We must make available certain of our cable network, broad-
cast television and filmed entertainment programming to bona fide online video distributors in certain
circumstances, and they may invoke commercial arbitration to resolve disputes over access to such
programming. We also must distribute programming via nbc.com that is generally equivalent to the program-
ming that we distributed via nbc.com as of January 1, 2011, on generally equivalent price, terms and
conditions, so long as at least one of the other major broadcast networks continues to distribute its
programming in a similar fashion. We are one of three broadcast network owners of Hulu, but we have no
voting rights or board representation. We have entered into renewal license agreements with Hulu on sub-
stantially the same terms as its other broadcast network owners.
Online Video Distributors
The FCC is considering classifying certain online video distributors that offer multiple linear video program-
ming networks to customers with a broadband Internet connection as multichannel video providers under
FCC rules to ensure that OVDs have program access rights to video programming from vertically integrated
cable programmers and the right to force local television broadcast stations to negotiate to license their con-
tent. The FCC also has proposed potentially excusing these entities from all or some of the regulatory
obligations applicable to current multichannel video providers. If adopted, these proposals would increase our
program access obligations and raise complicated issues regarding the licensing of our broadcast program-
ming.
Indecency
A federal statute and FCC regulations prohibit the broadcast of obscene material on television stations at any
time and indecent or profane material between the hours of 6 a.m. and 10 p.m. From time to time, we have
received and may receive in the future letters of inquiry from the FCC prompted by complaints alleging that
certain programming on our owned local broadcast television stations included indecent or profane material.
Filmed Entertainment
Our filmed entertainment business is subject to “trade practice laws” in effect in 25 states and Puerto Rico
relating to theatrical distribution of motion pictures. In countries outside the United States, a variety of exist-
ing or contemplated laws and regulations may affect our ability to distribute and license motion picture and
21 Comcast 2015 Annual Report on Form 10-K