Senate Bill S4653

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4653
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             February 10, 2025
                                ___________
 
 Introduced  by  Sen.  COMRIE -- read twice and ordered printed, and when
   printed to be committed to the Committee on Judiciary
 
 AN ACT to amend the general obligations law, in relation  to  agreements
   between multichannel video programming distributors and video program-
   mers

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Short title. This act shall be known and may  be  cited  as
 the "television subscriber choice act".
   §  2.  Legislative findings and intent. The legislature finds that the
 practice of channel bundling and the imposition of  minimum  penetration
 provisions  by  video  programmers  can  limit consumer choice, increase
 costs, and  stifle  competition  among  multichannel  video  programming
 distributors including cable, satellite and other distributors. This act
 aims  to  enhance  consumer  choice  and  ensure that multichannel video
 programming distributors have the flexibility to offer programming pack-
 ages that best meet the needs  and  preferences  of  their  subscribers.
 This  legislation  will  foster a more competitive and consumer-friendly
 market for video programming  distribution,  ultimately  benefiting  the
 public by providing greater access to diverse and affordable programming
 options.
   §  3.  The  general obligations law is amended by adding a new section
 5-338 to read as follows:
   § 5-338. AGREEMENTS BETWEEN MULTICHANNEL VIDEO  PROGRAMMING  DISTRIBU-
 TORS  AND  VIDEO  PROGRAMMERS.  1. FOR THE PURPOSES OF THIS SECTION, THE
 FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   (A) "CABLE TELEVISION COMPANY" SHALL HAVE THE SAME MEANING AS IN ARTI-
 CLE ELEVEN OF THE PUBLIC SERVICE LAW.
   (B) "VIDEO PROGRAMMER" MEANS ANY ENTITY THAT PROVIDES  VIDEO  PROGRAM-
 MING THAT IS INTENDED FOR DISTRIBUTION TO RESIDENTIAL, MULTI-DWELLING OR
 COMMERCIAL  UNITS INCLUDING, BUT NOT LIMITED TO, BROADCAST OR NON-BROAD-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08764-01-5
              

 S. 4653                             2
 
 CAST TELEVISION NETWORKS AND THE OWNERS AND LICENSORS OF  SUCH  PROGRAM-
 MING.
   (C)  "CHANNEL  BUNDLING"  MEANS  ANY PROVISION AS PART OF AN AGREEMENT
 BETWEEN  A  MULTICHANNEL  VIDEO  PROGRAMMING  DISTRIBUTOR  AND  A  VIDEO
 PROGRAMMER  THAT REQUIRES THE MULTICHANNEL VIDEO PROGRAMMING DISTRIBUTOR
 TO DISTRIBUTE AN ADDITIONAL CHANNEL OR  CHANNELS  OWNED  BY  SUCH  VIDEO
 PROGRAMMER OR AN AFFILIATE AS AN EXPLICIT OR IMPLIED CONDITION OF ENTER-
 ING AN AGREEMENT WITH SUCH VIDEO PROGRAMMER.
   (D) "MINIMUM PENETRATION PROVISIONS" MEANS ANY PROVISION AS PART OF AN
 AGREEMENT  BETWEEN  A  MULTICHANNEL  VIDEO PROGRAMMING DISTRIBUTOR AND A
 VIDEO  PROGRAMMER  THAT  REQUIRES  THE  MULTICHANNEL  VIDEO  PROGRAMMING
 DISTRIBUTOR TO DISTRIBUTE ONE OR MORE CHANNELS IN CERTAIN PACKAGES OR TO
 A MINIMUM NUMBER OR PERCENTAGE OF SUBSCRIBERS.
   (E)  "BROADCAST SATELLITE SERVICE PROVIDER" MEANS AN ENTITY THAT OPER-
 ATES A CHANNEL OF COMMUNICATIONS FOR POINT-TO-MULTIPOINT DISTRIBUTION OF
 TELEVISION STATION SIGNALS, AND THAT OWNS OR  LEASES  A  CAPACITY  OR  A
 SERVICE  ON  A  SATELLITE  IN  ORDER TO PROVIDE SUCH POINT-TO-MULTIPOINT
 DISTRIBUTION.
   (F) "ONLINE VIDEO DISTRIBUTOR" MEANS ANY ENTITY  THAT  PROVIDES  VIDEO
 PROGRAMMING  BY  MEANS  OF  THE  INTERNET  OR  OTHER  INTERNET  PROTOCOL
 (IP)-BASED TRANSMISSION PATH WHERE THE TRANSMISSION PATH IS PROVIDED  BY
 A PERSON OTHER THAN THE ONLINE VIDEO DISTRIBUTOR.
   (G)  "MULTICHANNEL  VIDEO  PROGRAMMING  DISTRIBUTOR" MEANS A PERSON OR
 ENTITY SUCH AS, BUT NOT LIMITED TO, A CABLE TELEVISION COMPANY, A MULTI-
 CHANNEL MULTIPOINT DISTRIBUTION SERVICE, A BROADCAST  SATELLITE  SERVICE
 PROVIDER,  ONLINE  VIDEO DISTRIBUTOR OR A TELEVISION RECEIVE-ONLY SATEL-
 LITE PROGRAM DISTRIBUTOR, WHO MAKES AVAILABLE FOR PURCHASE, BY SUBSCRIB-
 ERS OR CUSTOMERS, MULTIPLE CHANNELS OF VIDEO PROGRAMMING.
   (H) "SUBSCRIBER" MEANS AN INDIVIDUAL LOCATED IN THE STATE OF NEW  YORK
 WHO  SUBSCRIBES  TO VIDEO SERVICES FROM A MULTICHANNEL VIDEO PROGRAMMING
 DISTRIBUTOR.
   2. NO VIDEO PROGRAMMER SHALL ENFORCE OR EXECUTE  ANY  PROVISION  IN  A
 CONTRACT WITH A MULTICHANNEL VIDEO PROGRAMMING DISTRIBUTOR THAT DIRECTLY
 OR INDIRECTLY HAS THE PURPOSE OR EFFECT OF:
   (A)  SETTING  AS  A  CONDITION  OF  CARRIAGE THE NUMBER OF SUBSCRIBERS
 WHETHER SUCH NUMBER IS STATED AS A TOTAL  NUMBER  OF  SUBSCRIBERS  OR  A
 PERCENTAGE  OF  A  MULTICHANNEL  VIDEO  PROGRAMMING  DISTRIBUTOR'S VIDEO
 SUBSCRIBERS; OR
   (B) PRESCRIBING  THE  SERVICE  TIER,  PACKAGE,  OR  LEVEL  WHERE  SUCH
 PROGRAMMING OR STATION MUST BE CARRIED; OR
   (C) SETTING A RATE OTHER THAN A RATE PER VIEWING SUBSCRIBER REGARDLESS
 OF THE TIER, PACKAGE, VOLUME, OR LEVEL OF CARRIAGE; OR
   (D)  OTHERWISE RESTRICTING, IS INTENDED TO RESTRICT, OR HAS THE EFFECT
 OF RESTRICTING, THE MULTICHANNEL VIDEO PROGRAMMING DISTRIBUTOR'S PACKAG-
 ING OR PRICING OF SUCH PROGRAMMING OR STATIONS.
   3. A VIDEO PROGRAMMER SHALL OFFER EACH CHANNEL FOR LICENSE TO A MULTI-
 CHANNEL VIDEO PROGRAMMING DISTRIBUTOR WITHOUT REQUIRING CHANNEL BUNDLING
 REQUIREMENTS AS A CONDITION OF CARRIAGE OF SUCH CHANNEL.
   4. IT SHALL BE UNLAWFUL FOR A VIDEO PROGRAMMER TO DEMAND  UNREASONABLE
 FEES  OR  OTHER  FINANCIAL  OBLIGATIONS FOR CHANNEL CARRIAGE PURSUANT TO
 SUBDIVISION THREE OF THIS SECTION.
   5. ANY WAIVER OF THE PROVISIONS OF THIS SECTION IS CONTRARY TO  PUBLIC
 POLICY AND THUS IS VOID AND UNENFORCEABLE.
   6.  THIS  SECTION  SHALL NOT PROHIBIT A MULTICHANNEL VIDEO PROGRAMMING
 DISTRIBUTOR FROM ENTERING INTO AGREEMENTS THAT INCLUDE VOLUME  OR  OTHER
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 INCENTIVES,  WHETHER FINANCIAL OR OTHERWISE, BASED ON PACKAGING, VIEWER-
 SHIP OR OTHER METRICS RELATED TO CHANNEL USAGE.
   7.  IF  A VIDEO PROGRAMMER FAILS TO COMPLY WITH THE PROVISIONS OF THIS
 SECTION, A MULTICHANNEL VIDEO PROGRAMMING  DISTRIBUTOR  MAY  COMMENCE  A
 CIVIL  ACTION  IN A COURT OF COMPETENT JURISDICTION WITHIN THE STATE. IN
 SUCH ACTION, THE COURT MAY GRANT  INJUNCTIVE  RELIEF  AS  NECESSARY  AND
 APPROPRIATE  TO  REMEDY  THE  EFFECTS  OF ANY FAILURE TO COMPLY WITH THE
 PROVISIONS OF THIS SECTION.
   § 4. This act shall take effect on the first of January next  succeed-
 ing  the  date  on  which  it shall have become a law and shall apply to
 contracts entered into on or after such date.