Senators Want FCC To Look At Applying Local TV Rules To “Virtual MVPD” Streaming Platforms
A group of Democratic senators are calling on the FCC to consider whether to extend broadcast and cable regulations to streaming outlets as a way of ensuring that local stations can get distribution on the new platforms.
The senators, all Democrats and independents, wrote a letter to the FCC’s five commissioners, “out of concern for the future of the media market and our constituents’ ability to access broadcasters’ unique locally-focused content on streaming platforms.” They were specifically referencing so-called “virtual MVPDs,” or YouTubeTV, Hulu and other services that offer a slate of linear channels via the internet.
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The letter comes amid high profile standoffs over the carriage of broadcast and cable stations, leading to the recent blackout of Disney stations and channels from Spectrum’s systems, as well as increasing concerns over the future of linear TV in general.
Traditional media is bound by a set of regulations spelled out in the 1992 Cable Television Consumer Protection and Competition Act. It requires that cable providers negotiate directly with local TV stations for the retransmission of their programming, setting the stage for a lucrative revenue stream for broadcasters. The issue has come to the fore recently because of accelerating rates of cord-cutting, which has shaved the pay-TV bundle from 100 million U.S. homes a decade ago to less than 70 million. While broadcast stations are available for free via an antenna, the shrinking of the pay bundle has raised alarms about the place for local TV in an increasingly streaming-centric industry.
The senators led by Sen. Ben Ray Lujan (D-NM) noted that the virtual MVPDs are not subject to the same regulation. Those internet-delivered pay-TV bundles have ended up at odds with a number of station owners in recent years. In one representative dispute, more than 200 CBS affiliates owned by several companies returned to Fubo TV after a two-month absence.
The FCC launched an proceeding in 2014 to look into to extending the regulations to those platforms, but has not moved further. The lawmakers want the FCC to restart that proceeding.
The senators noted that since then, “there has been a monumental shift in the marketplace and the way people access video content. Internet-based streaming services now have a sizable portion of the video programming distribution market – and this is only expected to grow as streaming companies actively urge consumers to switch from traditional television providers like cable and satellite TV to virtual offerings and other video streaming services.”
The senators added, “As the expert agency, the Commission should be developing a record and
recommendations to ensure that our regulatory system – which has enabled a thriving locally focused broadcast system that is the envy of the world – is not undermined by the explosion of new technologies that were not foreseen even a mere decade ago.”
The National Association of Broadcasters has been pushing for restarting the proceeding. Curtis LeGeyt, president and CEO of the trade and lobbying group, said in a statement, “Though the television marketplace has changed dramatically in recent years, viewers still expect and deserve access to their local TV news stations – no matter the platform.”
FCC Chairwoman Jessica Rosenworcel said that they are reviewing the letter.
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