Tuesday, May 6, 2025

FCC Commissioner Labels Broadcast Nets 'Corrupt Media Cartel'


FCC Commissioner Nathan Simington and his chief of staff, Gavin Wax, published a scathing opinion in The National Pulse, calling for the FCC to impose financial penalties on broadcast networks like CBS, which they accuse of forming a “corrupt media cartel.” 

The piece positions this crackdown as support for President Donald Trump’s “America First” agenda and a boost for local broadcasters over major networks.

FCC's Nathan Simington
Commending Trump’s $20 billion lawsuit against CBS as “bold litigation,” the editorial urges the FCC to move beyond legal battles toward systemic reform. It proposes a 30% cap on “reverse transmission fees” to weaken networks, protect local broadcasters, reduce consumer costs, and dismantle the alleged media cartel.

The article claims that media giants like Paramount Global (CBS’s parent company) charge local broadcasters “reverse” retransmission fees, demanding a portion—or even over 100%—of their retransmission revenue for content rights. This, they argue, leaves broadcasters reliant on limited ad revenue, capped by networks to just a few minutes per hour. They also criticize networks for controlling retransmission consent negotiations with virtual MVPDs like YouTube TV, preventing local affiliates from negotiating directly and often leaving them with little or no payment. This system, they contend, strips local stations of revenue and autonomy in the growing online video market.

Simington and Wax argue that what was once a model to support local news has become a “corporate racket,” diverting funds from local journalists to national newsrooms that produce “anti-Trump propaganda and woke talking points,” while inflating cable bills for consumers.

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