Editor’s note: This story comes CableTV.com.
Your cable and streaming bills are likely increasing, but you probably don’t know exactly why.
Behind the scenes, large corporations are buying up local TV stations at an alarming rate. In fact, new data from CableTV.com shows that nearly half of Americans are completely unaware of the latest information on the industry $6.2 billion mega-deal.
Understanding the true impact of the Nexstar-TEGNA merger begins with examining its larger scale. Following its recent approval, the buyout creates the largest local TV owner in US history. 80% of American families. That level of market dominance gives a company incredible leverage to raise prices.
But last Friday this historic deal faced a major hurdle. a federal judge temporarily blocked Nexstar has held off on integrating TEGNA’s stations while the antitrust suit plays out in court. This legal break gives us a chance to learn more about how these corporate buyouts directly threaten your monthly budget, local news, and the way you watch TV.
How media mergers are putting your wallet at risk?
When a single media giant buys hundreds of local stations, it gets a huge advantage and demands higher retransmission fees from TV distributors. Providers like DIRECTV, Spectrum, and youtube Pay TV is then forced to pay, essentially passing down the cost of onboarding to subscribers.
It’s this corporate tug-of-war that’s causing 52.7% of Americans to expect these mergers to increase their monthly bills.
But TV consumers have a hard limit on how much they are willing to pay for these corporate buyouts. According to our survey, more than 56% of consumers would change or cancel their service if their monthly bill increased by $20.
When providers protest these charges, the groups often pull the plug, resulting in sudden channel blackouts. As a result, viewers have suddenly been shut out of live broadcasts, including marquee NFL games, college football rivalries and prime-time MLB matchups.
This is not just an imaginary threat; 22.1% of viewers reported losing access to a local TV channel in the last two years due to provider conflict.
Why does local news come under question?
When national media companies buy local stations, the “local” aspect is often the first priority. Instead of relying on community journalists who understand your neighborhood, new owners often create centralized broadcast centers.
As Judge Troy L. Nunley mentioned in his article preliminary injunction“Nexstar has an established track record of consolidating newsrooms when it owns more than one station in a (specified market area), meaning it reduces the independent news operation from two to one.”
This consolidation threatens a rare bright spot in today’s media landscape. While the credibility of general media faces intense scrutiny, local broadcasters maintain remarkably strong community ties.
Our survey shows that 81.1% of viewers trust their local TV station to cover community issues fairly, with 25.4% trusting it “very much” and 55.7% trusting it “a fair amount.”
But that loyalty is very delicate. The ultimate effect of the Nexstar-TEGNA merger may be a decline in viewership.
If a national owner cuts local talent, 44.3% of viewers will defect. With 33.5% fewer views and 10.8% closures altogether, the warning to media giants is clear: eliminating a station’s local identity undermines why people come to the station.
Antenna TV is your best defense against rising fees
If companies like Nexstar continue to swallow local stations and raise retransmission fees, your best defense is to cut the cord altogether. But our survey reveals a big public misconception holding viewers back: 16.7% of Americans mistakenly believe that watching local TV always requires a paid subscription.
Furthermore, 9.8% think that local channels are only available through cable or streaming services.
The truth is, you can bypass carriage disputes between mega-broadcasters and TV providers. As long as you live in an area with a reliable broadcast signal, a one-time purchase of an over-the-air antenna provides free access to local news, weather and sports.
The bottom line is that media consolidation creates higher costs and less local flavor for everyday audiences. As a consumer, your best defense is to find out who owns your local stations and look for free, over-the-air options to keep your TV bill under control.
Beyond your living room, you can make your voice heard by staying informed about the latest FCC developments. Public comment periods are an important part of federal reviews for large-scale corporate purchases, allowing everyday consumers Submit your feedback officially Directly to the agency.