FCC Urged to Modernize vMVPD Retransmission Rules Amidst Local News Strain
The article highlights the decade-old unresolved issue of vMVPD retransmission compensation and its impact on local news affiliates' negotiating power, urging the FCC to modernize regulations. It discusses how networks negotiate deals for affiliates, creating structural conflicts of interest and potentially undermining the financial foundation of local broadcasting as audience and ad dollars shift to streaming. The piece suggests that the current FCC administration may be uniquely positioned to address this regulatory impasse, emphasizing the risk of further weakening local broadcasters during the transition from QAM to IP-based delivery.
Key Takeaways
- The FCC's 2014 Notice of Proposed Rulemaking to modernize the MVPD definition and include internet-based services remains unresolved for over a decade.
- Networks (Fox, Comcast/NBCUniversal, Disney) negotiate vMVPD carriage deals for local affiliates, often without transparency into terms or revenue allocation.
- This arrangement creates a structural conflict of interest, as these networks also operate competing streaming platforms like Tubi, Peacock, and Hulu.
- The shift from QAM to IP-based delivery by traditional cable operators like Charter and Comcast could create a regulatory vacuum, further undermining local affiliate negotiating power.
Why It Matters
The decade-long regulatory stagnation surrounding vMVPD retransmission consent directly impacts the economic viability of local news. Without direct negotiation rights, local affiliates' revenue streams are weakened, jeopardizing their ability to invest in local journalism and community services. This issue will intensify as traditional cable operators transition to IP delivery, potentially eroding the 1992 Cable Act's MVPD framework. The industry needs to watch for definitive FCC action on MVPD classification to ensure equitable compensation for local broadcasters in the evolving streaming landscape.
Additional Context
The debate over vMVPD reclassification continues to draw attention from various industry stakeholders. The Motion Picture Association (MPA) recently urged the FCC not to reclassify vMVPDs, arguing against intervention in the video marketplace and citing a 2023 letter from then-FCC Chairwoman Jessica Rosenworcel that questioned the FCC's authority to make such reclassifications without new legislation (TV Tech, May 2026). Conversely, affiliate groups for ABC, CBS, Fox, and NBC have explicitly asked the FCC to reclassify vMVPDs, asserting that these services should operate under the same retransmission consent rules as traditional pay TV operators to ensure fair compensation for local stations (TV Tech, April 2024). The National Association of Broadcasters (NAB) has also advocated for the FCC to refresh its record on the impact of virtual MVPDs, emphasizing the need for updated marketplace information given the significant growth and influence of digital distribution platforms, and arguing that without direct negotiation power, local stations struggle to compete and invest in local content (NAB, current advocacy). These diverging perspectives underscore the complexity and high stakes involved in updating regulations for the rapidly evolving streaming ecosystem.
Read full article at tvnewscheck.com
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