Why It Matters
The Federal Communications Commission (CRS) faces mounting pressure to revisit decades-old network-affiliate rules. In July, tensions boiled over when affiliates preempted network programming to air a presidential speech, prompting President Trump to call for revocation of ABC and NBC licenses.
A new Congressional Research Service report on broadcast TV networks and affiliates details how streaming services and cord-cutting have upended the economics of local television.
The Big Picture
Five of the six rules governing TV network-affiliate contracts originated in a 1941 FCC order designed for radio networks and were extended to television in 1946 without comment or analysis. The sixth rule, prohibiting networks from representing affiliates in advertising, dates to 1959. All six remain in force for broadcast TV as of 2026.
Broadcast TV industry revenues collapsed from $43 billion in 2015 to $34 billion in 2025 in real terms. Multichannel video programming distributor (MVPD) subscribers plummeted from approximately 100 million households in 2015 to 45 million in 2025, a decline of more than 50 percent.
Networks have responded by launching their own streaming services and bypassing their affiliates to deliver premium entertainment and sports programming directly to consumers.
Affiliates claim that the value of their TV network affiliations has diminished, because programming exclusivity that was once the hallmark of network affiliation has been undermined by networks' owned subscription video-on-demand streaming services, which offer increasing amounts of must-see programming including sports programming that was once exclusive to local broadcast stations.
Of the 30 most-watched TV programs during the 2025-2026 TV season, 25 originated on broadcast TV networks, yet the stations carrying them struggle to monetize that content.
Affiliates contend that an economic imbalance has impeded their ability to generate revenues needed to cover local news and community programming costs. They point to contractual terms that limit their ability to substitute network shows with other content, such as local sports.
They have asked the FCC to allow them to negotiate directly with streaming services for retransmission rights to network programming, but networks counter that only Congress has that authority, citing statutory copyright protections.
The FCC launched a formal proceeding in November 2025 titled "Empowering Local Broadcast TV Stations" to examine whether networks exert undue influence over affiliate agreements. Then, on August 6, the FCC voted to eliminate the 39 percent national TV ownership cap, which was intended to balance network and affiliate bargaining power. The agency concluded the cap no longer maintains that balance.
The Bottom Line
The FCC has not yet initiated any proceedings related to streaming services that distribute broadcast TV network programming. Networks have refused to share virtual MVPD retransmission revenue with affiliates, and the agency lacks clear authority to compel them to do so.
If Congress does not act, expect more preemptions, more market exits like the 2025 disaffiliation of ABC from Miami, and continued erosion of the local broadcast infrastructure that still reaches millions of Americans who rely on free, over-the-air television.
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