Cable industry titans are merging, and the consequences for local television could be profound. The $34.5 billion Spectrum-Cox merger and Verizon's $20 billion acquisition of Frontier Communications represent massive shifts that put the future of accessible local broadcasting at risk.
When cable providers and broadcasters clash over retransmission fees, viewers lose access to critical local news, weather updates, and emergency information during blackouts. These disputes have tripled in frequency over the past decade, leaving communities vulnerable and broadcast engineers scrambling to maintain service. For local stations, these fees represent 30-40% of their revenue – essential funding for newsrooms, technology upgrades, and emergency systems.
Amidst this corporate consolidation, over-the-air television remains a powerful, free alternative. An estimated 15-20% of American households regularly use antennas to access local channels without monthly fees or blackout risks. This technology proves especially crucial during emergencies when internet and cable services might fail, yet reliable information is most needed.
The horizon brings both promise and peril with ATSC 3.0 (Next-Gen TV). While offering impressive technical advancements like 4K video and better mobile reception, the FCC's approval of Digital Rights Management encryption threatens the very concept of free television. This controversial decision could create paywalls for content that has historically been freely accessible to all.
For broadcast engineers like myself, these challenges represent both technical and ethical dilemmas. How do we maintain access for vulnerable populations while adapting to industry changes? How can we preserve the public service mission of broadcasting in an increasingly consolidated marketplace? The answers will shape not just entertainment options, but public safety and community connections for years to come.
Ready to prepare for cable blackouts and take control of your local TV access? Learn more about setting up an antenna and join our community of viewers committed to keeping local broadcasting strong. Share your experiences with cable disputes or OTA success stories – I'd love to hear from you!
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✅ Credits:
Verizon and Disney News Clip is Courtesy of KDKA-TV Pittsburgh/YouTube
Spectrum and Cox merger news clip courtesy of WFAA Dallas/YouTube
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Episode Transcript
Welcome to Fully Modulated, the podcast where
signal meets story, unpackingthe broadcast industry for
curious listeners and broadcastengineers alike.
I'm Tyler Woodward, a seniorbroadcast engineer for a network
of public media stations.
Since 2014, I've worked behindthe scenes to keep local TV and
(00:24):
radio signals strong andreliable, and today I want to
talk to you about why localtelevision still matters more
than ever.
So.
(00:52):
Mega mergers like spectrum andcox are shaking up the cable tv
(01:15):
world, threatening access tochannels we rely on every day
for news, weather and emergencyalerts.
But beyond the corporateheadlines lies a story about
engineers who keep our localstations on the air and the
viewers who might lose accesswhen negotiations fail.
And there's a new twist comingwith the next generation of TV
(01:38):
technology ATSC 3.0.
That could change what free TVeven means.
So let's dive in and explorewhy local over-the-air TV
remains the best bet to stayconnected, even as the cable
industry changes around it.
(02:15):
The cable tv industry isconsolidating fast.
The proposed 34.5 billiondollar merger between spectrum
and cox, two of the largestcable providers, would create a
giant with tremendous bargainingpower over local TV
broadcasters.
This matters because localstations rely on cable companies
to retransmit their signals,and those retransmission
agreements are often tensenegotiations over fees.
(02:38):
When talks break down, viewersget caught in the middle as
cable providers pull localchannels in what's called a
channel blackout.
These blackouts are no smallinconvenience.
Local news stations providevital information, from weather
updates to breaking news andemergency alerts.
(03:02):
When the local channeldisappears from your cable
lineup, you lose access totrusted voices in your community
, and it's not just the viewerswho feel the pain.
Local TV engineers scramblebehind the scenes to manage the
fallout, from troubleshootingfalse technical issues to
coordinating alternativemessaging.
(03:22):
Retransmission fees thepayments cable companies make to
broadcasters for their signalsare a critical revenue source
for the local stations.
When disputes drag on, thosefees dry up, sometimes forcing
budget cuts that impacteverything from newsroom
staffing to technicalinfrastructure.
(03:43):
A merger that gives cableproviders more power risks
making these disputes longer andmore frequent, putting local TV
stations and the engineers whokeep them running under strain.
Historically, re-transmissiondisputes have caused significant
disruptions.
(04:03):
Retransmission disputes havecaused significant disruptions.
For example, in 2023, charterCommunications, spectrum's
pairing company, droppedDisney-owned channels, including
local ABC affiliates, for 10days.
Millions of viewers suddenlylost access to their favorite
shows and local news duringthose blackouts.
(04:24):
Cox Communications has beeninvolved in several standoffs
with broadcasters like Tegna,no-transcript.
These disputes often involvehigh stakes.
Cable companies want to keepfees low to control cost, while
(04:46):
broadcasters argue thatretransmission fees help fund
quality local programming.
With a merged spectrum in Cox,the cable provider would control
a larger share of the market,reducing competition and likely
increasing their leverage.
At the negotiating table, thiscan mean tougher standoffs and
(05:09):
longer blackouts.
Adding to this landscape isVerizon's recent move to acquire
Frontier Communications for $20billion.
This acquisition aims to expandVerizon's fiber network and
enhance its competitive positionagainst rivals such as AT&T.
Frontier, with 2.2 millionfiber subscribers across 25
(05:35):
states, will combine withVerizon's 7.4 million VOS
connections.
The deal is projected to yield$500 million in annual cost
savings by the third year andaugment Verizon's revenue and
profit.
(05:55):
According to the NationalAssociation of Broadcasters,
retransmission consent fees makeup roughly 30-40% of revenue
for many local stations Criticalmoney that funds local
newsrooms, technology upgradesand emergency alert capabilities
.
A prolonged blackout can coststations millions in lost fees,
(06:19):
millions and lost fees.
Industry analysts warn thatcable consolidation reduces
competition, which historicallykept retransmission fees in
check.
With fewer cable companies,negotiating broadcasters may
(06:45):
face a take-it-or-leave-itapproach or worse, cable
providers might be more willingto pull channels, knowing
viewers have fewer alternatives.
Data also shows a growingnumber of retransmission
disputes.
In the last decade, the FCCreported an increase from fewer
(07:06):
than 10 major disputes in 2010to more than 40 annually by the
early 2020s, reflecting a risein tension as fees have climbed.
The proposed Spectrum and Coxmerger would likely accelerate
this trend.
Speaker 2 (07:12):
It's the clash of the cable titans cable provider
Verizon and Disney MediaNetworks, the parent company of
some of the most popular cablechannels, including ESPN.
The current agreement betweenVerizon and Disney runs out at
the end of the year and the twosides are having a hard time
(07:35):
reaching an agreement.
Speaker 1 (07:39):
When cable disputes cause blackouts, over-the-air or
OTA TV is the reliable lifelinethat viewers often overlook.
Ota signals come directly fromlocal stations to a simple TV
(08:00):
antenna in your home, bypassingcable or satellite companies
entirely.
This means your access to localnews, weather and emergency
alerts is unaffected bycorporate battles over
retransmission fees.
Unlike cable, ota TV iscompletely free, with no monthly
bills, contracts or complicatedequipment.
That simplicity andindependence makes it a more
(08:22):
powerful hedge against thedisruption caused by cable
mergers and blackouts.
Millions of viewers still relyon OTA signals, especially in
rural areas or for those lookingto cut costs.
With the growing uncertainty inthe cable world, many people
are rediscovering OTA TV's value.
(08:44):
Even with a basic antenna,viewers can get a crisp,
high-definition broadcast oftheir local channels and
critical emergency informationduring severe weather or other
crises.
The reliability of OTA TVduring emergencies cannot be
overstated.
Broadcasters are required bylaw to maintain over-the-air
(09:09):
signals to ensure universalaccess to emergency alerts, like
the Emergency Alert System,during disasters.
When cable systems might failor blackouts occur, ota TV can
provide life-saving informationFrom hurricanes to wildfires.
(09:30):
Ota broadcast don't rely on theinternet or third-party
infrastructure that might becompromised during an emergency.
For the broadcast engineers,maintaining a strong OTA signal
(09:53):
is a core priority, ensuringthat the local transmitter is
always on, compliant with FCCrules and able to deliver clear
reception to all corners oftheir market.
This technical commitmentsupports public safety and keeps
the community connected.
Research by Nielsen estimatesthat about 15 to 20 percent of
(10:17):
American households regularlyuse OTA TV as their primary or
secondary source of localchannels, a number that has
grown with cord-cutting trends.
The FCC reports that over 70percent of households can
receive at least five majornetwork OTA channels with a good
(10:37):
antenna.
Recent surveys show thatconsumers cite free access to
local news and reliabilityduring emergencies as top
reasons to keep or add OTAchannels, even as streaming and
cable options expand.
Speaker 3 (10:55):
Two of America's largest cable companies are
merging.
Privately held CoxCommunications is combining with
charter communications, whichoperates under the name spectrum
.
The reported 34 and a halfbillion dollar deal could create
a mega tv and internet provider.
Speaker 1 (11:11):
The new company if you're finding this episode
useful, please take a moment tolike, follow, share and also
rate and review.
Fully Modulated, it helps morecurious minds find the show.
Thanks for supportingindependent broadcast
storytelling.
Now let's talk about ATSC 3.0,drm and what the future holds
(11:44):
for free TV.
Atsc 3.0, also called Next-GenTV, is the latest over-the-air
broadcast standard.
It offers incredibleimprovements like 4K video,
immersive sound, better mobilereception and even interactive
features.
At its core, it combinestraditional broadcasting with
(12:08):
the Internet Protocol technology, opening up all sorts of new
possibilities for contentdelivery.
But the FCC's decision to allowbroadcasters to apply Digital
Rights Management encryption toATSC 3.0 signals is stirring a
bit of controversy.
(12:28):
Drm means some OTA broadcastscould be encrypted and require
special hardware orsubscriptions to access,
potentially ending the era oftruly free, open over-the-air TV
.
This shift could fundamentallychange how people access local
(12:50):
TV, creating paywalls andrestricting access, something
unheard of in the history offree TV.
It's a move that some criticscall short-sighted, risking the
very public service nature ofbroadcast TV.
Broadcasters see DRM as a wayto monetize their signals
(13:14):
through subscriptions ortargeted advertising, blending
OTA and broadband models.
But this comes at a cost toconsumers, who expect free,
universal access to local newsand those emergency alerts.
If OTA signals become lockedbehind DRM, viewers might have
(13:38):
to buy new receivers or pay feesjust to watch local channels.
This undermines the reliabilityand simplicity that has kept
OTA TV relevant for all thesedecades, especially for
vulnerable populations whodepend on those free TV signals.
The prospect of fragmented OTATV, where some stations are free
(14:06):
and others are encrypted,raises serious questions about
how broadcasters, regulators andbroadcast engineers will adapt
to preserve public access andemergency alerting capabilities.
The FCC's approval of DRM forATSC 3.0 happened back in 2020,
(14:27):
with broadcasters slowlybeginning to roll out encrypted
signals for certain content.
Consumer advocacy groups haveexpressed concerns that
widespread DRM could reduce OTAviewership and increase digital
divide issues.
A 2023 Consumer Reports surveyfound that 62% of OTA viewers
(14:51):
want to keep free access tolocal TV and are wary of
subscription models creeping into free broadcast.
So to recap, cable mergers likeSpectrum and Cox are
(15:27):
consolidating power andincreasing the risk of local
channel blackouts that frustrateviewers and put pressure on
stations and engineers alike.
The Verizon and Frontier mergeradds another layer to this
consolidation, potentiallyimpacting the dynamics of
retransmission agreements andviewer access.
(15:49):
But over-the-air TV remains adependable, free and
contract-free way to keep localnews, weather and emergency
alerts flowing directly intoyour home, bypassing cable
disputes entirely.
But over-the-air TV remains adependable, free and
contract-free way to keep localnews, weather and emergency
(16:12):
alerts flowing directly intoyour home, bypassing cable
disputes entirely.
For engineers, maintainingstrong OTA signals is a public
service and a technicalchallenge that keeps communities
connected.
Looking forward, atsc 3.0offers exciting technological
(16:33):
upgrades, but also poses newrisks to free TV because of the
FCC's decision to allow DRMencryption.
This could change the verynature of what free local TV
means and who has access to it.
(17:01):
I hope this episode gives you aclearer picture of why local TV
is still vital in a world ofmega mergers and why we all need
to stay vigilant about thefuture of free over-the-air
broadcasts.
If you've got questions orstories about your experiences
with OTA TV or those pesky cableblackouts, text me or send me a
(17:24):
message using the link in theepisode description.
I love hearing from fellowengineers and curious listeners
alike.
If you enjoyed this episode,please like, follow, share and
(17:54):
rate and review.
Fully Modulated.
It helps others find the show.
You can also become a modulatorby supporting the show for as
little as $3 a month atfullymodulatedcom.
Your support keeps this podcastgrowing and the signal strong.
Thanks for listening.
This concludes our broadcastday.
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