Broadcast Interruption by Nexstar and Altice USA Ceases
In a week-long standoff, Nexstar Media Group and Altice USA could not reach an agreement on the distribution of Nexstar's local stations and its cable news network, NewsNation. As a result, more than 60 Nexstar-owned local stations (including ABC, CBS, Fox, and NBC affiliates) and NewsNation programming were blacked out on Altice's Optimum TV service.
The disagreement stemmed primarily from a carriage fee dispute. Nexstar was seeking higher fees from Altice's Optimum to pay for the retransmission of local broadcast content and to expand NewsNation's distribution despite its relatively low viewership. However, Altice resisted these demands, citing viewer interest and cost concerns.
Optimum claimed that Nexstar was attempting to force it to increase NewsNation’s reach beyond current levels, which Altice opposed due to the channel's smaller audience. This carriage dispute is part of a broader context of ongoing negotiations and conflicts between Nexstar and cable providers over fees for retransmitting local broadcast content and associated networks.
After a week of negotiations, Altice USA and Nexstar Media Group reached a new distribution agreement on January 18. The agreement restored access to the blacked-out channels and NewsNation to Optimum subscribers. Reports suggest that the settlement included terms favorable to Nexstar in terms of increased revenue from carriage fees.
Despite the resolution, the financial terms of the distribution agreement between Nexstar Media Group and Altice USA remain confidential. Neither party has disclosed the financial details of the deal. The blackout affected cable systems owned by Altice around the country, with the disruption occurring in 42 markets.
In summary, the dispute between Nexstar Media Group and Altice USA was a result of Nexstar seeking higher carriage fees and wanting Optimum to expand NewsNation’s distribution despite low viewership. Altice resisted these demands, leading to a blackout of 63 Nexstar-owned local stations and NewsNation on Optimum. The parties eventually reached a settlement, restoring access to the affected channels and programming. However, the financial terms of the agreement remain undisclosed.
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- The FCC voiced concerns about the standoff, noting that disruptions in content delivery can impact consumers' access to critical information via local television stations.
- The media industry closely watched the negotiations between Nexstar and Altice, as the outcome could set a precedent for future disputes regarding nextgen TV distribution and carriage fees.
- The business and finance sectors also took note of the situation, as the settlement might influence the broader distribution of video content across various platforms, affecting subscription prices for consumers.
- The blackout affected millions of homes and businesses relying on Optimum TV service, highlighting the strategic importance of fee negotiations in the media industry.
- Despite the agreement, the financial impacts of the blackout and the details of the subsequent distribution agreement between Nexstar Media Group and Altice USA may require further analysis to fully understand the implications for the industry and viewers.
