Broadcasters Associated with CBS Advocate for FCC to Implement Merger Restrictions that Bolster Local Stations
In a recent meeting with the Federal Communications Commission (FCC), a group of broadcast affiliates, including senior executives from Co Media Group, the affiliates association, Sinclair, and Gray Media, voiced their concerns over the pending Paramount Global-Skydance merger. The affiliates' letter raised issues related to CBS control over affiliate finances, 'virtual Multichannel Video Programming Distributors' (vMVPD) negotiations, exclusivity of programming, and affiliation renewal practices.
The affiliates advocated for conditions in the merger approval order to strengthen local stations' capacity to serve their communities with local news and information programming. However, the letter did not address whether the FCC has the authority to impose such conditions on a pending merger as part of the transfer of the CBS-owned stations to new owners.
The current regulations around retransmission consent for vMVPDs are under scrutiny, with discussions about whether to redefine MVPDs to include vMVPDs. This would require vMVPDs to obtain retransmission consent directly from local broadcasters, potentially increasing broadcasters’ revenues. However, there is debate about expanding such regulation given the broad availability of video alternatives, and some argue for deregulatory approaches instead.
The FCC has proposed requirements for MVPDs to notify the agency within 48 hours of retransmission consent negotiations with broadcasters, aiming for greater transparency. However, there are no concrete indications from the latest updates that the FCC has extended or changed these rules specifically for vMVPDs or how this interacts with the anticipated Paramount Global-Skydance merger.
The owners of the broadcast networks and vMVPDs have opposed the change, saying it would raise pay TV bills for consumers. The affiliates' letter did not provide more specifics on the conditions they are advocating for.
The ongoing debate on the scope of FCC authority over retransmission consent and how to regulate MVPDs and vMVPDs fairly in the digital age is a continuing industry trend. However, no new rulemakings or mandates linked directly to this merger have been indicated. The situation remains fluid, with potential policy shifts pending regulatory rulemaking, but no finalized changes specifically affecting the merger or vMVPD retransmission consent negotiations as of mid-2025.
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- The affiliates, represented by Co Media Group, Sinclair, Gray Media, and the affiliates association, expressed concerns over the Paramount Global-Skydance merger to the Federal Communications Commission (FCC).
- The letter from the affiliates addressed aspects like CBS control over affiliate finances, vMVPD negotiations, programming exclusivity, and affiliation renewal practices.
- The affiliates are advocating for conditions in the merger's approval order aimed at enhancing local stations' ability to deliver local news and information programming.
- The FCC is currently reviewing the regulations for retransmission consent with vMVPDs, with discussions about potentially redefining MVPDs to include vMVPDs and requiring direct negotiations between vMVPDs and local broadcasters.
- There is debate about expanding such regulation due to the broad availability of video alternatives, with some advocating for deregulatory approaches.
- The FCC has proposed requirements for MVPDs to report retransmission consent negotiations with broadcasters within 48 hours, but there are no updates indicating extensions or changes to these rules specifically for vMVPDs in relation to the Paramount Global-Skydance merger.
- The owners of broadcast networks and vMVPDs have objected to the change, arguing that it might increase pay TV bills for consumers, and the affiliates did not provide more detailed suggestions on the conditions they are requesting in the merger.
