Could It Soon Be Challenging to Watch Your Local TV Stations?

The future of local television might be heading into choppy waters, thanks to a new push by Dish Network’s parent company, Echostar Communications. In an effort to change how TV stations are distributed, they’re asking the Federal Communications Commission (FCC) to reconsider a long-standing rule that could significantly impact how viewers access local programming.

From “Must-Carry” to “Maybe-Carry”?

Right now, pay TV providers — including cable, satellite, and telecom companies — are required to carry local broadcast stations under what’s known as the “must-carry” rule. But Echostar wants to change that. Instead of being obligated to carry every local station, they’re asking for the flexibility to provide alternative feeds from national broadcast networks. Essentially, they want the freedom to skip local stations if they choose.

What’s Driving the Change?

The shift is largely about dollars and cents. With more people cutting the cord and moving to streaming services, local stations have been raising the fees they charge providers like Dish to stay on their channel lineups. At the same time, traditional advertising revenues — the bread and butter of local TV — have been declining, except during political ad cycles every two years.

These stations are trying to make up for that lost income through higher distribution fees, but companies like Dish are pushing back. They argue they should have more say in which content they pay for and offer to customers.

A Less Regulated Future?

This situation is unfolding at a time when there’s broader talk of deregulation in the TV industry. The current rule limits ownership so that no single company can control stations reaching more than 39% of U.S. households. However, the FCC’s new leadership under Chairman Brendan Carr is signaling an interest in loosening those restrictions — which could pave the way for larger media groups to own more stations.

While this could offer some benefits, such as stronger financial backing for struggling stations, it also raises concerns about media consolidation and the loss of local voices in communities across the country.

Who Will Win the Distribution Battle?

As both content creators and distributors look to reshape their business models for the streaming age, a big question remains: who holds the power going forward? If companies like Dish get their way, local stations may lose a crucial layer of protection — and their ability to stay visible on traditional platforms could take a serious hit.

The next few years will be critical in deciding whether local TV remains a key player or becomes just another casualty of the digital shift.

Cate Bender, the author, is Project Coordinator of Marketing Keys