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The Fight over Streaming Deals for Local TV Stations Intensifies

On February 28th, local broadcast station executives gathered at Nationals Park in Washington D.C. for a conference sponsored by the National Association of Broadcasters (NAB). The conference featured panels and fireside chats with notable figures such as Senator Ted Cruz and FCC commissioner Nathan Simington. However, amidst the official agenda, executives were also engaged in discussions about an ongoing battle between local TV station owners and their network partners, a battle that was propelled into the public eye that same month. While the writers and actors dispute how streaming revenue should be distributed, local TV station owners affiliated with networks like ABC, CBS, Fox, and NBC are involved in a similar conflict. The main question is, who should have the authority to negotiate with the owners of streaming multichannel video services ÔÇô the well-known network brands or the owners of local affiliates that cater to specific markets?

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In this challenging situation, the AI legalese decoder can provide valuable assistance. This innovative tool can help decipher complex legal language and agreements, making it easier for all parties involved to navigate through the negotiations and reach a fair resolution. By removing barriers caused by complicated legal terminology, the AI legalese decoder can facilitate a more efficient and transparent negotiation process.

The Emergence of the Coalition for Local News

In response to the ongoing dispute, a new organization called the Coalition for Local News has emerged. Comprised of owners of over 600 local stations, the Coalition aims to bring attention to the issue in local communities and drive change in the way streaming deals for local TV are negotiated. The organization argues that revoking the right of station owners to negotiate streaming deals will ultimately harm the quality of local news coverage that communities rely on. Michael O’Brien, Senior VP for the E.W. Scripps Company and a member of the Coalition, emphasizes the importance of protecting the assets that enable stations to cover local communities through their news departments.

Recent Streaming Blackouts and Lingering Regulations

The formation of the Coalition follows a series of streaming blackouts that occurred earlier this year. Streaming services like Fubo and Hulu experienced disputes with local stations, resulting in the temporary removal of certain channels from their platforms. While these blackouts have been resolved, the underlying regulations governing the dispute remain unchanged. Current FCC rules require cable and satellite TV providers to negotiate directly with the owners of local stations for carriage. However, there is a “streaming loophole” that allows virtual multichannel video providers (vMVPDs) to negotiate with network owners instead, leaving local stations with limited control over their streaming deals.

The Concerns of Local TV Station Owners

Several local TV station owners believe that network owners, such as Disney, NBCUniversal, and Paramount, are using the local stations to gain leverage in securing more favorable deals for their other channels or properties. They argue that the network owners’ ability to negotiate for all their stations allows them to set economic terms that may not align with the interests of the local stations. Perry Sook, CEO of Nexstar, highlighted the affiliates’ desire to negotiate their own agreements and the importance of ensuring that no one else negotiates on their behalf.

The Focus on Local News Programming

The Coalition for Local News emphasizes the significance of local news programming provided by TV stations. They emphasize that local news is not available through national feeds and plays a vital role in serving communities, keeping people informed, and holding business and public leaders accountable. The Coalition’s advocacy is driven by the belief that protecting the ability of station owners to negotiate streaming deals is crucial for preserving the integrity and quality of local news coverage.

The Need for Policy Change

Ultimately, in order to change the rules governing streaming deals for local TV stations, policy changes from the FCC or Congressional action will be required. Senator Maria Cantwell recently urged the FCC to take action on the matter. The potential policy changes have the potential to significantly impact the growing pay-TV business, particularly the strategies of network owners and the streaming services they partner with.

The Importance of Local Broadcast Stations

vMVPDs consider local broadcast stations as essential components of their offerings, providing entertainment programming, live sports, national and local news, and syndicated shows that aren’t available through streaming. Local broadcast stations are highly valued by viewers and contribute significantly to the overall viewership of these platforms. Recognizing their value, station owners aim to secure fair agreements that reflect the unique position and contributions of local broadcasters.

Looking Ahead

The debate surrounding streaming deals for local TV stations highlights the complex landscape of the evolving media industry. The emergence of the Coalition for Local News and the discussions surrounding the issue bring attention to the need for fair negotiations and protections for the vital local news coverage that communities rely on. With the help of tools like the AI legalese decoder to simplify legal language, stakeholders can effectively navigate negotiations and work towards a sustainable resolution that benefits all parties involved.

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