Regulator Pursues Proposed Guidelines for Virtual Multichannel Video Programming Distributors During FCC Meeting
In a recent meeting, the National Association of Broadcasters (NAB) met with Commissioner Anna Gomez and her team to discuss the regulation of virtual Multichannel Video Programming Distributors (vMVPDs) like YouTube TV. The NAB, backed by vMVPDs and major programming companies such as Disney, Fox, and Paramount, expressed concern over the lack of information about their organizations in the Search Results.
According to the NAB, the commission's rules were designed for a different era, and it's crucial for the agency to examine the interplay between local broadcasting, the dramatic rise of streaming, and the unregulated Big Tech behemoths that have disrupted the economics underpinning local journalism. Rick Kaplan, NAB's president and CEO, emphasized the critical need for the FCC to study how streaming has affected local broadcasting.
In a letter to the commission, Kaplan wrote that the commission has not addressed the impact of streaming on local broadcasting despite numerous comments on other issues. He also noted that many Members of Congress agree that the commission should be examining the impact of streaming on local broadcasting.
The Preserve Viewer Choice Coalition, a group backed by vMVPDs and major programmers, responded to the NAB's comments, stating that the commission has consistently reinforced its lack of authority to upend the streaming marketplace. The commission chairwoman, Jessica Rosenworcel, has argued that the agency may not have the power to change those rules without Congressional action.
The discussion has divided the broadcast industry between station owners, who want the vMVPDs reclassified, and broadcast networks owned by major media companies, which want to continue to handle deals with online providers as part of much larger distribution pacts. Currently, station groups handle retrans negotiations with traditional MVPDs, but broadcast networks and major programmers like The Walt Disney Co. and Paramount Global handle retrans deals with virtual MVPDs.
Interestingly, the reality is, local news is widely available on streaming, providing consumers with a variety of ways to watch. Polling shows that few Americans support more streaming regulations. The commission should seek additional comment from parties in light of the intervening decade since it last sought public input on the issue of virtual MVPDs. The NAB is ready to work with the commission to help it gain a better understanding of the current marketplace.
Kaplan questioned why the commission has not examined the impact of streaming on service to local communities since 2014. He stated that the Commission's rules were designed for a different world and that the agency must examine the interplay between local broadcasting, the dramatic rise of streaming, and the unregulated Big Tech behemoths that have shattered the economics underpinning local journalism. The NAB representatives at the meeting expressed surprise at the commission's lack of curiosity about the impact of streaming.
The meeting was attended by Curtis LeGeyt, NAB president and CEO, and Rick Kaplan, its chief legal officer and executive vice president. The NAB's call for action comes as station groups believe they can increase their retransmission consent revenue if they are able to negotiate directly with YouTube TV, Fubo, Hulu, and other vMVPDs. The commission's response to these concerns remains to be seen.
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