CEOs: Broadcasting Faces Imbalance With Tech; Networks
LAS VEGAS -- Broadcasters struggle with an unbalanced relationship with programming networks and tech companies, broadcast CEOs told NAB President Curtis LeGeyt in a panel discussion at NAB Show 2024 Monday. “We cannot finance the content for these networks and then have the network say ‘Watch it on our streaming service the next day,’” said Allen Media CEO Byron Allen. “A challenge is that we’re highly regulated and there are many who are not,” said Graham Media CEO Catherine Badalamente.
The network relationship with local affiliates isn't balanced, Allen said. The networks take more than 50% of the money broadcasters get from MVPDs in retransmission consent, he said. Fifty percent would be reasonable because of the amount needed for broadcast rights for NFL games, but broadcasters shouldn’t be paying more than that, he said. Networks also negotiate with streaming services on their affiliates' behalf, and undermine broadcast content by putting it on streaming services. “Sports shouldn’t be on streaming ever,” Allen said. “The horse and buggy business did not have to finance the auto business,” Allen said.
Allen said that he wants to buy CBS owner Paramount Global but that his stance on the network-broadcaster relationship wouldn’t change if he owned a network. “If you don’t regulate yourself, I am highly confident the government is going to step in,” Allen said. “You can do a better deal with the broadcasters today than you’re going to get with the government tomorrow.”
Broadcasters also face an imbalance in both scale and level of regulation with tech companies, said Graham's Badalamente and Townsquare Media CEO Bill Wilson. Townsquare’s ownership of local radio stations is capped while its competition at Spotify faces no such growth restrictions, Wilson said.
Tech companies don’t compensate broadcasters when they share their content and broadcasters are at a severe disadvantage when negotiating with them, Badalamente said. Not only do broadcasters not get compensated for their content, they also often don’t get access to the audience data for pieces of content shared on social media and other sites, Badalamente said. “It’s a take it or leave it scenario,” she said. Badalamente said she's looking to the proposed Journalism Competition and Preservation Act (S-1094) to even the playing field with tech companies. The JCPA would give some broadcasters and journalism outlets an antitrust exemption to allow them to jointly negotiate with tech companies over content. “The idea of us not even having a fair opportunity to negotiate on our own behalf is a huge issue for all of us,” she said.