WASHINGTON—A consortium of the largest television networks in the U.S. announced the formation of a new coalition to fight back against local broadcasters’ efforts to change the rules on negotiating carriage rights with virtual multichannel video program distributors (so-called “vMVPDs”).
The "Preserve Viewer Choice Coalition" includes ABC, CBS, Fox, Fubo, NBC, Roku, Telemundo, Univision, and Warner Bros. Discovery. The group said it “will aim to protect consumer streaming choices and preserve a competitive online video marketplace.”
The group is a response to the launch last week of the “Coalition for Local News,” a group of local broadcast station groups, with the support of ABC, NBC, Fox and CBS television Affiliate Associations representing more than 600 local TV stations nationwide. The coalition is calling for rules around carriage rights between local TV stations and vMPVDs—like YouTube TV, Sling TV and Hulu Live+—be updated to mirror the rules already in place for traditional cable and satellite pay TV video services.
Currently carriage for local TV stations for vMVPDs is handled by the networks, resulting in a “streaming loophole,” that doesn’t give local broadcasters any control over retransmission consent, the Coalition for Local News said, and that the loss of potential revenues threatens local TV news budgets.
Congress is also looking into rule changes—in June Sen. Maria Cantwell (D-Wash.) 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 Preserve Viewer Choice Coalition claims that the local broadcasters coalition is attempting to hone in on their territory by trying to control negotiations for content they do not own. “These groups would revive a long-dormant FCC proceeding that provoked an overwhelmingly negative response during a comprehensive public consultation where commenters pointed to the potential harm to viewers, content creators, and local news providers,” they said. “Their proposed rule changes would turn back the clock and force online video providers and streaming platforms to be regulated like the cable industry of decades past.”
"In reality, these station group efforts are not about getting local TV content onto streaming platforms—that's already happening. Rather, this is about trying to use government mandates to interfere with business negotiations," said Bryce Harlow, spokesperson for the Preserve Viewer Choice Coalition. "Consumers deserve the freedom to access diverse video content and enjoy a wealth of choices, which is why we oppose proposed regulation that would threaten that choice, stem innovation, and increase the cost to consumers."
The coalition said that local TV stations benefit from the rise in vMVPDs, claiming that local TV stations can, in fact, negotiate for local content carriage.
"Our goal is to protect consumer choice and the availability of local TV content on streaming platforms, and we believe that is exactly what the streaming marketplace provides today," Harlow said. "We want to embrace the future of content that streaming enables, not be dragged backward to a time when choice was limited, costs were high, and access was controlled by a handful of distributors. These regulations could eliminate options for streaming consumers and risk reducing the amount of local content available online today. We urge Congress and the FCC to refrain from unnecessary government regulation."
Lydie Neill, spokesperson for the Coalition for Local News responded:
"We don’t doubt the members of this newly launched coalition value local news—some of them even own local news stations, albeit as relatively small parts of much larger corporations. But the current system, which cuts local broadcasters out of the negotiation process for distributing our stations on the fastest growing streaming platforms, puts local news in existential danger.
"So instead of fighting us, we hope these companies will work with us to modernize the rules so that local news can endure during this time of immense change.”
This article was updated July 28.
