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Simington Advocates for FCC Oversight on YouTube TV and vMVPDs, Similar to Cable Regulation

"The existence of this loophole empowers a small group of influential entities to consolidate their power and move closer toward monopolistic control," as asserted by the commissioner in a published opinion piece.

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"In an opinion piece, the FCC commissioner highlights a loophole that permits a select group of...
"In an opinion piece, the FCC commissioner highlights a loophole that permits a select group of dominant entities to further consolidate their power and approach monopolistic tendencies."

Simington Advocates for FCC Oversight on YouTube TV and vMVPDs, Similar to Cable Regulation

In a bold new opinion piece, Republican commissioner Nathan Simington from the Federal Communications Commission (FCC) has proposed some game-changing regulatory reforms to bolster local broadcasters. One of these proposals involves modernizing ownership caps and treating virtual Multichannel Video Programming Distributors (vMVPDs), such as YouTube TV, as traditional pay-TV operators, like Comcast.

Traditionally, local station groups and the National Association of Broadcasters (NAB) have been advocating for this change, as it would empower them to directly negotiate retransmission fees with vMVPDs, just as they do with traditional cable and satellite providers. At present, media firms like Disney, who own broadcast networks like ABC, handle these negotiations as part of more extensive groupings of networks.

As Simington and his chief of staff Gavin Wax assert in a piece published by The Daily Caller, the lack of FCC regulation of streaming services creates a loophole, allowing a select group of powerful players to amass more power and monopolistic tendencies, often escaping even the most rudimentary public interest obligations.

In this piece, Simington has once again expressed his intent to relax ownership rules. He writes, "In contrast to satellite, cable, and broadcast TV, streaming isn't regulated by the FCC and faces no such constraints." In his view, traditional broadcasters are shackled by relic ownership limits, such as the 39% national audience reach cap, while their internet-based streaming competitors like Amazon Prime, Disney+, and Netflix operate without restraint, steadily dominating the market.

To revitalize local broadcasters, Simington suggests that the FCC must modernize its ownership rules, allowing traditional broadcasters the freedom to consolidate and compete. He also advocates for the FCC to reevaluate how it classifies and regulates streaming platforms.

Under modernized retransmission consent rules, vMVPDs like YouTube TV might be obligated to pay retransmission fees to local broadcasters, opening up new revenue streams. Mandatory carriage could also increase local broadcasters' reach and visibility, boosting their competitive edge against tech giants. Implementing nondiscrimination rules could ensure fair treatment for local broadcasters, promoting diverse content. Extending public interest obligations to vMVPDs might require them to support local content and public service programming, further strengthening local broadcasting's role in serving their communities.

These changes could have significant implications for local broadcasters, media companies, and streaming platforms. Strengthened local broadcasters could invest more in local journalism and community programming, enhancing their competitive edge against tech firms. Media companies might secure additional revenue streams, but they could also face increased competition as all platforms, including vMVPDs, compete on equal ground. Streaming platforms like YouTube TV might experience higher operational costs, potentially affecting their pricing models and profitability, leading to increased costs for consumers and altering the streaming landscape. The full editorial can be found here.

  1. In his proposed regulatory reforms, FCC commissioner Nathan Simington suggests modernizing ownership caps and treating virtual Multichannel Video Programming Distributors (vMVPDs) as traditional pay-TV operators, such as Comcast, to empower local broadcasters.
  2. Simington asserts that the lack of FCC regulation of streaming services creates a loophole, allowing some companies to amass more power and monopolistic tendencies, escaping even the most basic public interest obligations.
  3. Under modernized retransmission consent rules, vMVPDs like YouTube TV might be obligated to pay retransmission fees to local broadcasters, potentially opening up new revenue streams for them.
  4. These changes could have significant implications for local broadcasters, media companies, and streaming platforms, as enhanced local broadcasters may invest more in local journalism and community programming, and streaming platforms like YouTube TV might experience higher operational costs.
  5. The National Association of Broadcasters (NAB) and traditional local station groups have long advocated for this change, as it would allow them to negotiate retransmission fees with vMVPDs, similar to negotiations with traditional cable and satellite providers.
  6. Simington proposes that the FCC must reclassify and regulate streaming platforms, and consider extending public interest obligations to vMVPDs, requiring them to support local content and public service programming.

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