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Texas Judge Allows Time Warner Cable to Maintain Local Station “Replacements” During Disputes

Phillip Dampier September 10, 2012 Consumer News, Public Policy & Gov't No Comments

When Time Warner Cable can’t reach a retransmission consent agreement with local broadcasters, it can thank a loophole left in a badly-written contract the cable company has with Nexstar Broadcasting, a Texas station owner group, for providing a stop-gap solution.

A federal judge ruled late last week Time Warner Cable was allowed to replace local affiliates with Nexstar-owned stations because their contract does not prohibit the cable operator from the practice.

When the cable company’s carriage agreement with Hearst Corporation expired in July, Time Warner replaced affected local stations in Ohio, Kentucky, Florida, North Carolina, Vermont and New York with Nexstar-owned stations based in Terre Haute, Ind. (NBC affiliate, WTWO-TV), Wilkes-Barre, Pa. (NBC affiliate, WBRE-TV), and Rochester, N.Y. (CBS affiliate, WROC-TV).

Viewers in Kentucky ended up getting the local news from a station in western New York, located hundreds of miles away, but cable subscribers still got to watch their favorite network shows.

Nexstar sued Time Warner in federal court to stop the practice.

But Judge Jorge Solis could find nothing in Nexstar’s agreement prohibiting the cable company from importing the distant stations.

“Nowhere in the [agreement] does Nexstar limit its retransmission consent,” Solis wrote. “It appears the language limiting the broadcast […] is not present when Nexstar gives its retransmission consent under Section 1. In fact, it is specifically omitted when describing the ‘retransmission consent’ under Section 1.”

Solis refused to grant a request for a temporary restraining order and preliminary injunction stopping Time Warner from carrying Nexstar stations outside of their designated local broadcast areas.

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