Nexstar Media Group, the biggest local broadcaster in the U.S., and DirecTV are preparing to face off in a retransmission-consent battle that could result in about 200 stations across 100 markets being blacked out at the end of the month.
Nexstar stations have begun running warnings that subscribers to DirecTV, DirecTV Stream and U-verse TV could lose signals from Nexstar’s ABC, NBC, CBS, Fox and The CW affiliates.
“Our station has a contract with DirecTV/Uverse that allows them to deliver our programming to you. That contract could soon expire and DirecTV/Uverse might remove our station from your schedule,” a message on the website of Nexstar-managed WPIX New York said.
In a statement, the broadcaster said: "Nexstar has been negotiating tirelessly and in good faith to reach a mutually agreeable multi-year contract with DirecTV since May, offering them the same fair market rates we offered to other large distribution partners with whom we successfully completed negotiations over the last three years. DIRECTV has continuously proposed rates that are well below market for the valuable network and local community programming provided by our station(s), leaving us skeptical of whether they are motivated to reach a fair agreement."
DirecTV said that at a time when more and more consumers are cutting the cord, it can’t continue to accept higher and higher retransmission fees and hope to pass them along to consumers.
In the current talks, DirecTV claims Nexstar seeks to double what it charges subscribers.
“Nexstar, the nation’s largest broadcaster, is demanding to more than double the amount it charges our customers to access approximately 200 local stations it owns or controls in more than 100 metro areas that serve 68% of U.S. TV households,” a DirecTV spokesman said. “Unfortunately, Nexstar has a long track record of demanding significantly higher fees from all pay TV operators and often forces providers to stop carrying their channels during negotiations. DirecTV will take the necessary actions to provide our customers access to their favorite programming while protecting them from unwarranted price increases.”
Both sides pointed their finger at their erstwhile partner, claiming each has engaged in brinksmanship when earlier retrans deals were up for renewal.
“You may have seen them do this before. They will tell you they’re doing this on your behalf, but don’t believe it. DirecTV/Uverse has a history of taking stations off their line-up, holding their customers hostage,” the WPIX website says. “In fact, as a result of such actions, DirecTV/Uverse has lost an estimated 1.5 million subscribers just last year. Our offer is fair. And now they hold you the subscriber hostage. It’s not right.”
Nexstar goes on to suggest that if there is a blackout, subscribers to DirecTV should demand a rebate for the programming they’re no longer receiving.
“Nexstar routinely reaches amicable retransmission and carriage agreements with its cable, satellite and telco partners,” the broadcaster’s statement said. “Since the beginning of 2020, Nexstar has successfully completed agreements with 500 distribution partners, covering more than 90% of the company’s nationwide footprint. In 2022 alone, we successfully completed agreements with more than 50 of our distribution partners, including several large distributors.”
DirecTV also filed a challenge with the FCC stating that Nexstar violated media-ownership rules and other regulations by having de facto control over stations owned by Mission Broadcasting and White Knight Broadcasting, including in 25 markets where Nexstar also owns a top four local broadcaster.
According to the complaint, this control is exercised through a combination of services agreements, financing arrangements and option agreements, and is further evidenced by the behavior of Nexstar, Mission and White Knight in retransmission-consent negotiations with DirecTV. The complaint also alleges that Nexstar, Mission and White Knight have misled the FCC about these arrangements for years.
