In a recent development, local TV station owners have joined forces to form the Coalition for Local News and are urging the Federal Communications Commission (FCC) to treat streaming services as cable TV companies. This move would require popular platforms such as YouTube TV, Hulu, and Fubo to engage directly with local station owners instead of major networks.
However, Fubo’s CEO, David Gandler, is set to present opposing arguments during a congressional hearing titled “Lights, Camera, Subscriptions: State of Video Marketplace.” Fubo will argue against the proposed regulations, advocating for a less regulated environment for streaming services, along with others in the industry.
To counter this effort by the Coalition, a collective known as the Preservice Viewerchoice coalition has been formed. This alliance includes YouTube TV, Fubo, Vidgo, Roku, Paramount, Disney, NBCUniversal, and more, all working together to oppose the transformation of streaming services into cable TV companies.
Streaming services and industry players are hoping for support from Congress to resist the demands made by local TV station owners. This conflict has resulted in a clash between local station owners like Nexstar and network owners such as Disney’s ABC and Comcast’s NBCUniversal. Presently, ABC and NBC can negotiate contracts encompassing all their local TV stations, even those not under their ownership, when partnering with streaming platforms like YouTube TV. However, if local TV station owners succeed in their demands, the FCC’s regulation of live TV streaming services will be significantly altered, requiring platforms like Fubo and Hulu to directly negotiate deals with each individual owner, similar to the practice followed by cable TV companies.
Local station owners, like Nexstar, are prepared for a prolonged battle to secure what they believe will be more favorable negotiation terms with streaming services. The outcome of this tussle has the potential to significantly impact the dynamics and regulatory framework of the live TV streaming industry.
