According to Forbes, Disney and YouTube TV have settled their carriage dispute, but the broader streaming wars continue with Fubo TV (ironically owned by Disney) pulling NBC and all NBCU cable networks from its subscribers. The Federal Communications Commission has now launched a formal proceeding titled “Exploring Market Dynamics Between National Programmers and Their Affiliates” that could determine whether national broadcast networks or local stations control negotiations with streaming platforms. This regulatory battle stems from 1992’s retransmission consent rules that gave local broadcasters negotiation rights with cable and satellite providers, rights that streaming services have largely bypassed by dealing directly with networks. The broadcasting industry has splintered into two opposing coalitions – the affiliate-funded Coalition for Local News versus the network-controlled Preserve Viewer Choice – fighting over billions in streaming revenue. This comes as traditional TV faces shifting consumer tastes and advertising dollars moving to streaming platforms.
Streaming Changed Everything
Here’s the thing about those 1992 retransmission consent rules – they were written for a completely different media landscape. Back then, cable and satellite operators had to negotiate with local stations to carry broadcast programming. But when streaming platforms like YouTube TV and Fubo emerged, they operated in a legal gray area. Basically, they could cut deals directly with the networks themselves, completely bypassing the local affiliates that had been guaranteed a seat at the table for decades.
And that’s where the money problem starts. Local stations have been watching their retransmission consent payments drop with every cable cord that gets cut. They argue that if streaming services look like cable providers and act like cable providers, they should be treated like cable providers under the law. Without that negotiation power, they claim they’ll lose the funding that supports local news production. Given the growing number of news deserts across the country, that’s not an empty threat.
Networks Versus Affiliates
So why are the networks fighting their own affiliates on this? The major broadcasters – NBC, CBS, ABC, and Fox – argue that the world has changed dramatically since the 1990s. They’re the ones making massive investments in programming, especially in sports where they’re competing against deep-pocketed tech giants like Amazon and Netflix. They claim that without the ability to negotiate directly with streaming platforms, broadcast networks might become irrelevant.
But here’s what’s fascinating – this isn’t just a fight between networks and affiliates. Even among affiliates, there’s division. Large station groups like Nexstar, Sinclair, and Gray are getting larger and pushing for more control, while smaller groups feel they’re either being swallowed up or ignored entirely. The broadcasting industry, facing existential threats from all sides, is splintering rather than uniting.
The FCC’s Dilemma
Now the FCC finds itself in a tricky position. Do they side with the local broadcasters who argue they need protection to preserve local news? Or with the networks who claim they need flexibility to compete against tech giants? The commission’s inquiry goes beyond just streaming negotiations to include questions about station preemption rights and potential “undue influence” of networks over affiliates.
What’s really at stake here? Potentially the entire future of locally-based broadcast television. If local stations lose their funding source, we could see even more consolidation and fewer local news operations. But if networks can’t compete effectively in the streaming world, they might not have much programming left for anyone to broadcast. It’s a classic regulatory catch-22.
An Uncertain Future
Look, nobody expects a quick resolution to this mess. The FCC proceeding is just starting, and with so much regulatory uncertainty, everyone’s digging in for a long fight. But maybe that’s not entirely bad. Sometimes regulatory pressure forces an industry to do some serious soul-searching about its future.
The broadcasting business finds itself at a crossroads, caught between 1990s regulations and 2020s consumer behavior. Whether they can adapt without destroying what makes local broadcasting valuable remains the billion-dollar question. One thing’s for sure – the outcome of this fight will determine what your TV screen looks like for years to come, and whether your local news station survives the streaming revolution.
