| The National Association of Broadcasters (NAB) is back at the FCC with a full plate of regulatory requests — and this time, it wants the whole cake, too. In a recent filing, the NAB urged the FCC to move quickly on a sweeping wish list: a mandate to convert all over-the-air broadcasting to the ATSC 3.0 transmission standard (also known as "NextGen TV"), an end to the burdensome requirement to simulcast in the current ATSC 1.0 format during the transition, a rollback of ownership rules to pave the way for further consolidation, and — perhaps most notably — continued protection for the retransmission consent regime, the system that allows broadcasters to demand payment from cable and satellite providers (MVPDs) for carrying their local signals. ATSC 3.0/NextGen TV Upside Is Clear Let’s be clear: ATSC 3.0 offers broadcasters an exciting and potentially lucrative future. The new standard allows for higher picture quality, improved mobile reception, and — perhaps most importantly for station owners — the ability to carve out new revenue streams through targeted advertising, datacasting, subscription-based services, and more. It transforms a TV signal from a one-way broadcast into a flexible, IP-based platform that resembles the internet more than traditional television. The NAB argues that this transition is vital to keep local broadcasters competitive. They're not wrong about the potential benefits of 3.0 — but the FCC should think twice before giving the industry a one-sided deal. If broadcasters are going to gain so much from a 3.0 mandate, they must give something meaningful back. And that “give” should come in the form of revisiting retransmission consent. Retrans fees have become the lifeblood of many station groups. According to S&P Global Market Intelligence, U.S. broadcasters earned an estimated $12.3 billion in retransmission revenue in 2023, up from just $200 million in 2006 — a more than 60-fold increase over less than two decades. In some cases, retrans now accounts for more than half of a station’s total revenue, particularly for large broadcast groups like Nexstar and Sinclair. … Continue reading Tim Hanlon’s full column here. |
