Podcast #1115: Should IPTV Streamers be Treated like Cable Companies?

This week look at what would happen if Instagram and TikTok allowed 10 minute short video clips. Also, we breakdown why local network affiliates are trying to convince the FCC to start treating IPTV Streamers like cable TV providers. We also read your emails and take a look at the week’s news.

News:

You’ll soon be able to control an LG appliance with Samsung’s app — and vice versa Shure launches Aonic 50 Gen 2 headphones with spatial audio and hybrid ANC at IFA 2023 Roku Laying Off 10% of Employees, Will Take up to $65 Million Charge to Remove Streaming Content

Other:

A New Paradigm in Immersive Audio Design Excellence Instagram is internally testing the ability to create Reels up to 10 minutes long

By increasing the time limit on Reels from three minutes to 10, Instagram would be aligning its short-form video product with TikTok, which expanded its maximum video length to 10 minutes back in February 2022. The change would also put Reels in competition with YouTube. Full Article Here…

Local ABC, CBS, FOX, & NBC Owners Demand The FCC Reclassify YouTube TV, Fubo, DIRECTV STREAM, & More As Cable TV Companies

In a nutshell - A bunch of affiliate stations are asking the FCC to treat IPTV streamers like cable companies. Which would force the streamers to negotiate directly with the TV station owners.

If local TV stations win, Fubo, Hulu, and others wouldn’t be able to strike deals directly with Paramount for all CBS stations. Instead, they will need to go to each individual owner of each local TV station. 

For the record - CBS owns 14 stations throughout the US.  

California — Los Angeles — KCBS California — San Francisco — KPIX California — Sacramento — KOVR Colorado — Denver — KCNC Florida — Miami — WFOR Illinois — Chicago — WBBM Maryland — Baltimore — WJZ Massachusetts — Boston — WBZ Michigan — Detroit — WWJ Minnesota — Minneapolis — WCCO New York — New York — WCBS Pennsylvania — Philadelphia — KYW Pennsylvania — Pittsburgh — KDKA Texas — Dallas/Fort Worth — KTVT

The net result would mean that live TV streaming services would need to pay a $1.23 fee per subscriber every year for the FCC regulatory fee imposed on cable TV companies. It's our take that the amount would start at $1.23 and go up very quickly.

So Nexstar Media Group, Sinclair, E.W. Scripps, and Gray Television want to cut out the big networks and negotiate directly to bring their locals to streaming services. They hope to get better deals than what the parent companies have agreed to. They argue that the current situation is unfair to local station owners.

The argument is that the deals as they exist today don't give local stations enough money to produce local news.

For now, it looks like local station owners are ready for a long fight to get what they believe will be a better deal for them.

Thoughts on the situation:

I never understood why any local network could charge for cable access? What did they do before cable? We could barely watch some channels in the 70s. After cable they all came in clear. If anything, they should have been paying the cable companies to carry the channels. Let’s say Hulu and the rest of them just say forget it! What happens? - The only real impact that I see is with the NFL Why wouldn’t Nexstar just tell the networks that they want a bigger cut and have one big voice when negotiating? Sounds like the networks screwed the affiliates. What do local stations provide? In the old days they would provide weather traffic and sports. Now I get real time traffic on my phone as well as weather and sports scores. For breaking news, I follow my affiliate and if something big is happening locally I jump on their news stream. Maybe they should cut their budgets and have one newscast in the morning and evening. Are they really locally owned when a company like Sinclair owns multiple stations across the US?