The ongoing dispute between DIRECTV owned services, such as DIRECTV STREAM, and Nexstar has escalated into an unsightly battle that has lasted for several months. As a result of this conflict, Nexstar, which holds the largest stake in ABC, CBS, FOX, and NBC affiliates, has withdrawn its local channels from DIRECTV. However, recent developments hint at a potential resolution on the horizon.
Previously, both parties publicly battled and involved the FCC in attempts to resolve the blackout situation. However, the situation has recently taken a turn towards silence, with caution exhibited by both sides when speaking about the issue. In many cases, such restraint is an indication that a deal is close to being finalized.
Tom Carter, formerly the president and chief operating officer of Nexstar who now serves as a senior advisor to the CEO, shared insights during an investor conference held by Bank of America. Carter mentioned that after a relatively slow start to the dispute, there has been regular communication in recent weeks, leading to progress. He expressed his optimism regarding an agreement being reached in the near future.
Earlier this year, DIRECTV filed a lawsuit against Nexstar, Mission Broadcasting, and White Knight, major owners of local television stations, alleging illegal collusion. The lawsuit was brought before the U.S. District Court for the Southern District of New York. At the heart of the matter lies DIRECTV’s claims that Nexstar Media Group, as the largest broadcaster in America, continuously violates federal antitrust laws by conspiring with Mission Broadcasting and White Knight Broadcasting to manipulate, increase, and fix retransmission consent fees. DIRECTV further accuses Nexstar of employing deceptive measures, such as entering into “sham sidecar agreements” with Mission and White Knight stations to sidestep FCC ownership regulations.
As things unfold, the outcome remains uncertain. Progress appears to have been made, but the crucial question remains whether the two companies can ultimately find common ground and put an end to this protracted dispute. Meanwhile, customers continue to bear the brunt of the fallout, with their access to local channels still disrupted.
