The National Association of Broadcasters (NAB) has expressed its support for a coalition of local TV stations that is pushing for cable-style regulations on live-streaming services such as YouTube TV, Fubo, and Hulu. NAB CEO Curtis LeGeyt made these remarks during a House Communications and Technology Subcommittee hearing, stating that the Federal Communications Commission (FCC) should reexamine viewer access to local stations due to the impact of streaming. While LeGeyt did not explicitly call for full cable regulations, he emphasized the need for the FCC to assess the impact of viewer habits on localism.
The NAB’s comments mark its strongest endorsement of the Coalition for Local News, a group comprising over 600 local TV stations. This coalition has argued that streamers like YouTube TV and Fubo, which offer a cable-like live-TV experience, should be subject to the same rules that require cable TV providers to negotiate with individual stations for distribution rights. However, major players in the industry, including Disney, Warner Bros. Discovery, and Fubo, have formed the Preserve Viewer Choice Coalition in response. They contend that such regulations would complicate negotiations, possibly leading to blackouts for certain streaming services.
Under the current system, companies like Fubo and YouTube TV can collaborate with media giants such as Disney, which acts as a proxy for its ABC stations and other local broadcasting giants. However, local stations are calling for their own participation in negotiations, a sentiment with which LeGeyt agrees. He emphasized the important role that local broadcasters play in providing news, weather, sports, public affairs, and emergency information, which their competitors do not replicate. LeGeyt urged Congress to ensure fair competition and continued consumer access to these essential services.
Fubo CEO David Gandler strongly opposes subjecting streaming services to these regulations, arguing that they would result in more blackouts and the loss of local stations. Negotiating with each local station individually would be impractical and time-consuming, diverting resources away from major media markets and leaving many local communities without access to content. Gandler also pointed out that Fubo already pays significant retransmission fees to offer local channels, and raising fees would ultimately harm consumers.
LeGeyt warned that as audiences continue to shift from cable and satellite to streaming options, the retransmission fees that directly benefit local broadcasters will be affected, hindering their ability to invest in community coverage. However, local negotiation would further complicate matters and likely lead to higher prices for consumers, according to Grant Spellmayer, CEO of ACA Connects, representing local internet providers.
The focus of the hearing extended beyond the issue of whether streaming services should be treated like cable companies. It also addressed the proliferation of blackouts, with recent disputes between Disney-Charter and DIRECTV-Nexstar serving as prominent examples. Representative Anna Eshoo, a Democrat from California, denounced the current blackout situation as unfair, and she asserted that it is Congress’ responsibility to find a solution. Spellmayer expressed concern for local internet providers who are caught in the middle of rising programming costs, with limited options to pass these costs to consumers, go out of business, or face blackouts.
Gandler emphasized the preference among Fubo customers for a bundled content experience, stating that the average customer watches 100 hours of programming per month. He believes that the bundle still maintains its appeal.
