Tag: Gavin Wax

FCC Commissioner Nathan A. Simington and his chief of staff Gavin M. Wax penned ann op-ed published in The National Pulse calling for a cap on reverse retransmission fees as a measure to protect local journalism and rein in corporate media monopolies. Simington and Wax propose limiting reverse retransmission fees to 30%, arguing that such a cap would curb the financial power of legacy media giants, support independent broadcasters, and restore integrity to America’s media landscape. They write in the piece, “These fees (and ad sales) generate revenue for broadcasters that they use to run their operations and produce local journalism. However, media conglomerates like Paramount Global, the parent company of CBS, have begun charging what’s known as ‘reverse’ retransmission fees to broadcasters. The networks demand a share of broadcasters’ revenue for the right to use their content. This practice was once unheard of, but some networks now regularly require more than 100% of broadcasters’ retransmission fees as ‘reverse’ fees, leaving broadcasters to sustain themselves solely on whatever ad sales they can make with their limited inventory (also capped by the networks, and often amounts to only a few minutes of airtime per hour). This funnels more and more money out of local markets and local journalism and into the hands of mega media corporations, who threaten broadcasters with content blackouts if they don’t get sky-high payouts.” They go on to argue that the “problem gets even worse with providers like YouTube TV and Hulu Live. Under their affiliate agreements with the networks, local affiliates can’t even negotiate for online providers to carry the content. The networks do it for them and pay the affiliates whatever they deem reasonable (sometimes, nothing). This gives the networks total control over streaming distribution while robbing local stations of revenue and autonomy in the rapidly growing online video space. What was once a mechanism to support hometown news is now a corporate racket. Instead of investing in local reporters, meteorologists, and producers, local broadcasters’ funds are siphoned to bloated national newsrooms that churn out anti-Trump propaganda and woke talking points. Meanwhile, higher cable bills pass the cost to everyday Americans.” Read the full op-ed here.