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With the recent speculation regarding NBC’s interest in cutting back to two hours in primetime, another long-simmering issue is coming to a boil: Why are the traditional television networks (CBS, NBC, ABC and Fox) still in complete control of the financial and legal relationships between the affiliates and the virtual MVPDs otherwise known as YouTube TV, Hulu, DirectTV Now, Sling and the rest of the gang?
Way back in time, maybe 10 years ago or so, the network affiliates, through their affiliate associations, resolved to negotiate directly with the nascent virtual players in the same manner they had already been doing with the traditional cable and satellite players. To their chagrin and complete frustration, the affiliate associations were rebuffed by both the vMVPDs and the television networks, who had joined forces in order to control the revenue and determine the value they believed the affiliates were worth, using their affiliates as leverage to help clear their slate of programming channels.
Never mind that many of the early subscribers were using these new platforms as a combination antenna service and virtual DVR. Never mind that much of the most-watched programming remained the local news. Never mind that the networks, who were now charging ever-increasing rates for their own “programming deals” with the affiliates, were now dictating to the affiliates exactly how little they would be allowed to “earn” if their signals were carried on these streaming platforms. But much like the