WASHINGTON, D.C.—Local broadcast station groups, with the support of ABC, NBC, FOX and CBS television Affiliate Associations representing more than 600 local TV stations across the country, have launched The Coalition for Local News.
The new advocacy group said it will work to protect the future of local news in America and work with lawmakers and regulators on policies that will strengthen the local news business.
"Local broadcast stations can thrive in a fair marketplace. We have demonstrated as much over the past 30 years of successful competition in the cable and satellite era. But no business can succeed when the rules don't apply fairly and reflect today's reality," says Mike Meara, former chair of the ABC television Affiliates Association and member of the Coalition. "The market has evolved dramatically and it's time for lawmakers and regulators to act to protect local broadcast news."
In announcing the launch, the group said that the future of local broadcast news is threatened by regulations that need to be modernized and the failure of government agencies to use the existing authority they have to protect the competitive position of local news outlets.
One such area, the group said, is the so-called "streaming loophole" in the current FCC rule requiring cable and satellite providers, but not online streaming services, to negotiate directly with local broadcasters for carriage of their stations. Today, streaming services represent about one-third of the pay-TV market.
Typically the networks, not the station groups, handle negotiations with such vMVPDs, such as FuboTV or YouTube TV, which has produced tension between affiliate groups and the media companies owning broadcast networks.
This means, the group contends, that local television stations have lost control of their retransmission consent rights and that current rules have cut them out of the negotiating process with streaming services.
Without the ability to negotiate directly with streaming services, local broadcasters cannot obtain the compensation necessary for them to sustain their substantial investments in local news, the new group said.
This issue has also been highlighted by the NAB as something the FCC needs to address.
The FCC itself began a process to consider the issue of the "streaming loophole" back in 2014 when it solicited public comment, but it has not addressed the issue since, the group said.
Last month, Senator Maria Cantwell sent a letter to the FCC requesting that it refresh the record to address the current media environment and protect local news in the streaming era.
The Coalition said that one of its chief priorities is urging the FCC to do just that – refresh the record now with comments that reflect the vastly changed market realities of 2023.
Last week, the FCC announced its intent to consider updating a separate set of longstanding program carriage rules, an acknowledgment of the need to modernize video regulations in light of a changing marketplace.
"Congress and the FCC have always modernized federal rules in other contexts to keep them in line with advancements in communications technologies and changes in the marketplace. All we ask is that we modernize these regulations to reflect the current marketplace so local broadcasters are able to compete and thrive on a level playing field," says Michael O'Brien, senior vice president at The E.W. Scripps Company, and member of the Coalition. "This 'streaming loophole' takes direct investments away from local broadcasters and allows national media conglomerates to control the right to local broadcasters' signals, ultimately deciding the fate of local news."
The Coalition will be engaged in an array of advocacy efforts, including working with groups that recognize the vital importance of local news and urging them to get involved in this debate, the group said.
More information is available at coalitionforlocalnews.org.
