NCTA, Dish, ATVA, Public Knowledge, Others File Against Nexstar/Tribune
Rising retransmission consent rates, dependence on the UHF discount, and a lack of complete information are reasons the FCC should turn down Nexstar’s proposed buy of Tribune (see 1901300054), said postings in docket 19-30 this week. Dish Network, NCTA, Frontier Communications, the American Television Alliance and a collection of anti-consolidation groups including Common Cause and Sports Fan Coalition filed concerns. “The transaction raises serious concerns under antitrust analysis that would undermine competition in the broadcast market,” said the anti-consolidation joint filing.
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The deal’s effect on retrans negotiation was cited by every petition to deny. Nexstar “seeks to create a broadcast colossus that will hinder competition and exacerbate the broken retransmission consent system,” said Frontier. Regulators should weigh both the transaction’s effects on local competition and on Nexstar’s national retrans negotiations, Dish said. The FCC and DOJ “have long understood that the cumulative impact of market power in many local markets is more than just the sum of its parts,” Dish said. To prevent Nexstar from acquiring anticompetitive negotiating power, the FCC should “at a minimum” deny its request to own two top-four stations in Indianapolis, NCTA said. The combination is an existing one currently owned by Tribune. “Nexstar’s prior retransmission consent disputes have led to massive programming blackouts affecting tens of thousands of consumers,” said Common Cause, Sports Fan Coalition, Public Knowledge and the United Church of Christ Communication Office.
Nexstar/Tribune isn’t “ripe” because the broadcaster hasn't disclosed precise divestiture plans, ATVA said. “This transaction cannot meaningfully be reviewed” without those disclosures, and the FCC should issue a second public notice to allow comment “on the transaction in its entirety” once that information comes out, ATVA said. Divestitures to sidecar companies such as Dreamcatcher “could raise issues,” the alliance said. Nexstar has said the full divestiture plan will be announced by the end of Q1.
Anti-consolidation groups said the deal is dependent on the UHF discount, which the FCC admitted is obsolete. The discount is a “distortion in audience measurement that the Applicants are attempting to exploit,” the groups said. The deal would also be bad for broadcast localism, the groups said. “It is likely that Nexstar will continue its business model of creating regional hubs leading to employee layoffs and consolidated newsrooms,” the joint filing said. “Given the unprecedented amount of control Nexstar would have in the broadcast market, the Applicants have not shown that the transaction will serve the public interest.”
Nexstar/Tribune is in the public interest because it would allow the company to funnel more resources for its news operations, better compete with other media companies and maximize benefits of ATSC 3.0, Nexstar has said. Tuesday, the acquirer didn't comment.