Local TV affiliates push FCC to reclaim streaming distribution rights
Local TV affiliate groups filed a joint letter with the FCC, arguing that network parent companies' direct-to-consumer streaming services are depriving local stations of viewership and ad revenue, placing economic strain on the linear TV ecosystem. The filing also highlights how this impacts retransmission consent fees and could delay investments in new technology like NextGen TV (ATSC 3.0). The FCC is considering rules to expand broadcasters' distribution rights to streaming services, similar to existing cable and satellite carriage regulations.
Key Takeaways
- Nexstar, Sinclair, Gray Media, E.W. Scripps, and Hearst Television jointly filed a letter claiming network DTC services like Hulu, Peacock, Paramount+, Fox One, and Disney+ deprive local stations of viewership and ad revenue.
- Affiliate fees now "consume all of, or even in excess of" total retransmission consent revenue at some stations, per the groups' letter to the FCC.
- Networks have historically negotiated vMVPD carriage on behalf of affiliates, leaving local stations unable to directly negotiate with services like YouTube TV and Hulu with Live TV.
- The FCC is considering rules to extend retransmission consent frameworks to streaming services and allow stations to sunset ATSC 1.0 transmissions in favor of ATSC 3.0 (NextGen TV).
- Critics argue expanded distribution rules would trigger streaming carriage disputes that pull local channels from services, ultimately raising costs for consumers.
Why It Matters
The filing escalates a long-simmering conflict between local affiliates and their network parents, who now compete with their own affiliate base through direct-to-consumer streaming services. If the FCC extends retransmission consent rules to streaming platforms, vMVPDs like YouTube TV and Hulu with Live TV would face the same carriage negotiation framework as cable and satellite — meaning local stations could negotiate directly for fees rather than accepting network-brokered deals. The proposal also intersects with the FCC's ATSC 3.0 transition proceeding, which would give broadcasters targeted advertising capabilities that narrow the competitive gap with streaming. Watch for whether Chairman Brendan Carr moves to reclassify vMVPDs under the MVPD definition, a question the FCC has left unresolved since 2014.
Additional Context
The affiliate groups' filing builds on a series of earlier regulatory complaints. In April 2026, the same affiliate associations filed reply comments in a separate FCC proceeding on sports broadcasting practices (Docket 26-45), arguing that networks placing games behind streaming paywalls — including on their own DTC services — undermines the economic model that funds local news. That filing cited data showing NFL games appeared on 10 different paywalled platforms in 2025, with subscriptions to watch every game costing approximately $1,500 (per NewscastStudio, April 2026).
The vMVPD retransmission issue has been technically unresolved since 2014, when the FCC opened a Notice of Proposed Rulemaking to modernize the MVPD definition for internet-based distributors. That proceeding generated extensive comment but never advanced to a final order, leaving networks to negotiate vMVPD carriage on behalf of affiliates on a take-it-or-leave-it basis, as reported by TVNewsCheck in June 2026. Counsel for the affiliate groups submitted a 28-page ex parte filing on June 22 in the FCC's biennial Communications Marketplace Report proceeding (GN Docket No. 26-78), stating that many affiliates are "upside down" — paying more to their networks than they earn from all MVPD and vMVPD distribution combined (per Radio & Television Business Report, June 2026).
Separately, the FCC's October 2025 Fifth Further Notice of Proposed Rulemaking proposed ending mandatory ATSC 1.0 simulcasting requirements. Major station groups — Gray Media, Sinclair, Nexstar, and Scripps — filed responses in January 2026 urging the FCC to set hard transition deadlines: February 2028 for the top 55 markets and February 2030 for the rest, aligning with an NAB proposal (per NewscastStudio, January 2026). Weigel Broadcasting opposed a forced timeline, arguing only 6% of U.S. televisions currently have ATSC 3.0 tuners and that 20 million households rely exclusively on free over-the-air TV.
Read full article at thedesk.net
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