Directv Quietly Tests Transmitting National NBC Feeds Offset Loss Tegna Affiliates

DirecTV has been at odds with TV station group TEGNA for months. That means that more than 60 local TV stations that fall under the belt of TEGNA are not available on DirecTV. Needless to say, many of DirecTV’s customers are not pleased. In an apparent attempt to try and make up for losing these local stations, DirecTV did a secret test of broadcasting national network TV channels instead.

The law typically states that local TV stations solely reserve the right to broadcast network programs, such as NBC, to their local region. Yet, DirecTV argues that they are not dependent on the local stations. They believe that they can solely operate with networks such as NBC to broadcast their programs across the country. In some markets in which TEGNA owns the local NBC station, DirecTV, under their test, broadcasts the national NBC station to those markets without any advertising to raise awareness of that fact.

TEGNA didn’t like the DirecTV test at all. They said DirecTV should be working out a fair deal to bring back the local stations, just like other providers have. But DirecTV wants to look at options other than the rising fees local stations charge. A test of national network channels is an initial step to see if that might be a solution when they can’t agree with local station owners like TEGNA.

DirecTV Trying a New Model for National Network Feeds

For some time now, DirecTV has been in a dispute with TEGNA over the fees for the broadcast of TV stations. Therefore, most of the local TEGNA stations have been pulled out of the air on DirecTV. Out of goodwill, DirecTV wanted to give some alternatives to the viewers to keep on viewing network shows, such as NBC. For that reason, it began to distribute the national NBC channel instead of the local NBC station in some areas. 

That was something of a guinea pig for whether a new model could stick. Most of the time, the law requires the local station to offer network shows in their town. But DirecTV doesn’t always need the local station. They were trying to see if agreements with networks like NBC to run their shows nationally could supplant local stations in these fight-over-the-fee situations.

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The satellite provider looks into how to bypass local broadcasters

DirecTV failed to negotiate a pricing agreement with the TEGNA television station group. As a result, the TEGNA local channels went dark on DirecTV. DirecTV had to look at all other options so they could keep the people from missing out on networks such as NBC.

One option that DirecTV attempted was to deliver the national NBC channel, not the TEGNA-owned local NBC station. The law basically allows only local stations to air the network in any given city.

DirecTV, however, sought to work directly with networks to help them control their dependence on local stations.

New Approach Results After Dispute Between DirecTV, TEGNA Street

DirecTV and TEGNA have been negotiating the terms of carrying TEGNA’s local stations for some time now. The dispute led to the removal of channels from DirecTV subscribers. As the dispute wore on, DirecTV wanted to come up with a new solution.

DirecTV experimented with offering national NBC in some markets in place of TEGNA-owned local NBC. DirecTV did this as a stopgap measure to still air network shows during arguments over rising station fees. It is something the company may do if the TEGNA and other station disputes drag on. It was new ground for DirecTV, which realized it had to find a way to still show network fare during arguments over rising station fees.

DirecTV Transmits NBC on National Level in Test Markets

DirecTV ran a test to see what would happen if the TEGNA stations were gone. In many cities, DirecTV was running the national NBC channel, not the local NBC owned by TEGNA. This was on the national level, not just in a town.

Typically, DirecTV would have to carry the local station that owns the rights in each city. But for this test, DirecTV sent the same NBC feed that airs nationwide. They want to see if this can replace local stations like Tegna’s when disputes go on for a long time.

National Broadcast Feeds Evaluated as Cure for Station Blackouts

DirecTV losing its fight with TEGNA resulted in a large number of local stations vanishing from the service. They needed to find a way to continue to provide NBC and other network shows. National channels that broadcast across the USA are one possibility.

DirecTV, in its experiment, was broadcasting the national NBC feed in markets where the TEGNA station went missing. They were testing whether airing the national feed alone could solve the issue of disappearing stations during retransmission disputes over high station fees.

Regulatory Loopholes Permit Testing at Sites without Local Affiliates

The rules generally allowed only the local station in each market to carry network shows like NBC, but DirecTV figured there might be a loophole for testing.

DirecTV was utilizing the national NBC channel as a test case to see if there were possible exceptions in the laws that would enable them to try solutions other than the local station during fights, such as with TEGNA, which seems to drag on.

Alternate Delivery Options Researched in the Wake of Rising Retransmission Fees

DirecTV was fighting with TEGNA over long-term fees for local stations. Stations want more money each year from DirecTV. As costs went up, DirecTV explored other ways to deliver people their shows.

DirecTV said its test of the national NBC channel was part of an effort to find options besides local stations. Local stations make disputes by asking for higher fees. But DirecTV thought deals with just networks could replace stations if fights over price go on too long. Giving National NBC was the first step in checking new ways to deliver channels.

With TEGNA in a dispute, DirecTV is trying to avoid rising station costs. Their test allowed them to see if direct network feeds work instead of stations that will not agree to fair prices, like TEGNA. They will review the results.

FAQ’s

Why are they testing alternatives to local affiliates?

DirecTV argues that local stations’ retransmission consent fees have been rising sharply. The tests explore options to offset this expense and the loss of programming when disputes prevent carriage of local stations.

 Is DirecTV allowed to do this?

Currently, only local affiliates have the exclusive right to redistribute network programming in their market. However, DirecTV believes there may be loopholes to test alternatives directly with networks on a national level during disputes.

Why is TEGNA upset about the tests?

TEGNA argues DirecTV should focus on negotiating fair carriage deals with local stations, like other providers have done, instead of exploring ways to bypass the local affiliates.

What does this mean for the DirecTV-TEGNA dispute?

The tests don’t immediately resolve the blackouts but could influence DirecTV’s strategy in future disputes by providing an alternative to dropping programming if a deal isn’t reached with local station groups.

Final Thoughts

DirecTV’s test of transmitting national network feeds was a significant development in the ongoing carriage dispute with TEGNA. It showed the company exploring alternative methods of delivering popular broadcast programming directly from networks instead of through local affiliates. While the test has now concluded, it demonstrated DirecTV’s willingness to leverage any regulatory loopholes to circumvent rising retransmission fees from station groups.

Whether such an alternative model could be implemented on a larger scale remains unclear under the current legal framework which grants local affiliates exclusive market rights. But DirecTV publicly making the argument that it does not always need local stations to provide network content puts broadcasters on notice. As disputes over fees continue in the industry, expect pay-TV providers like DirecTV to increasingly seek ways to reduce reliance on local affiliates who hold leverage through mandatory carriage. DirecTV’s move was a probing of that dynamic that could influence the debate in years to come.