The FCC Chairman has initiated a significant inquiry into the relationship between Comcast’s NBCUniversal and its local broadcast affiliates, raising critical questions about compliance and public interest obligations.
FCC Chair Initiates Investigation into NBCU’s Treatment of Local Affiliates
The chairman of the FCC has launched an inquiry into the relationship between Comcast’s NBCUniversal and its local broadcast affiliates.
Inquiry Notification
Brendan Carr communicated the inquiry to Comcast CEO Brian Roberts in a letter sent on Tuesday.
Public Interest and Compliance
In the letter, first reported by Newsmax, Carr stated that the “FCC has an interest in and the authority to promote the public interest and to ensure that local broadcast TV stations retain the economic and operational independence necessary to meet their public interest obligations.” He emphasized the importance of ensuring that Comcast’s relationships with local broadcast TV stations comply with all relevant federal regulations.
Concerns Over Negotiation Tactics
Carr expressed concerns about reports indicating that NBC and similar networks are attempting to extract onerous financial and operational concessions from local broadcast TV stations. This approach threatens the termination of long-held affiliations, potentially leading to blackouts and other negative impacts on local consumers.
Review Request
He has requested the FCC’s media bureau to review the affiliation agreements that Comcast holds with local broadcast stations.
Response from Comcast
A Comcast spokesperson has not yet responded to requests for comment.
Focus on Local Stations
An FCC spokesperson noted, “Chairman Carr has made it clear over the past six months that he is focused on the relationship between national programmers and local broadcast TV stations.” This inquiry aligns with his goal of empowering local broadcast TV stations to fulfill their public interest obligations.
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Trust in Local News
Carr has highlighted the importance of local stations, citing polling that shows a higher level of trust in local newscasts compared to national content. He referenced a Gallup poll indicating low trust in mass media, stating, “Viewers are voting with their feet, as more and more people are turning to new media for their information.”
Previous FCC Actions
This inquiry is one of several initiated by the FCC chairman, who has previously addressed concerns regarding Comcast and Disney’s diversity, equity, and inclusion practices. Despite the FCC’s recent approval of Skydance’s merger with Paramount Global, a complaint against CBS News regarding the editing of an interview with Kamala Harris remains unresolved.
Changing Dynamics in Network Relationships
Network affiliate groups have noted a “rapidly changing” dynamic in network-affiliate relationships, driven partly by the shift towards streaming services like Paramount Plus, Disney+-Hulu, and Peacock. The fees charged by major networks to affiliates are increasing while the exclusivity that once characterized these agreements is diminishing.
Financial Pressures on Local Stations
Affiliates argue that they are subsidizing rising live sports rights, which are no longer exclusive to broadcast. They contend that networks are using their own subscription-based platforms to distribute the same programming, including live sports, that broadcasters are paying for.
Negotiation Restrictions
Carr highlighted restrictions on local stations’ negotiations for streaming platform carriage and provisions that limit their ability to compete for local sports rights, indicating a growing imbalance between networks and affiliates.
Conclusion
Carr previously raised similar issues in a letter to Bob Iger, CEO of The Walt Disney Co., before he became FCC chairman.
