NBC Inks Agreement With Affiliates for OTT Video13 Apr, 2017 By: Erik Gruenwedel
NBC Universal April 13 announced a deal with a board representing affiliate TV stations regarding burgeoning over-the-top video services and “TV Everywhere” platforms.
The agreement is similar to what Disney/ABC Television Group rolled out last year with affiliates.
With the rise of online TV services such as Sling TV, DirecTV Now, PlayStation Vue and Charter Spectrum TV Plus, major broadcasters (Fox, ABC, CBS, NBC) have struggled to bring local affiliates on board with over-the-top video.
NBC, like ABC and others, has more than 200 affiliates, in addition to 11 wholly owned TV stations. Affiliates, fearing the threat OTT video has on linear TV, have sought assurances (financial and otherwise) from networks and others regarding new digital carriage agreements.
Separately, HBO and Showtime have had issues with some TV affiliates rolling out HBO Now and Showtime OTT, respectively.
“We believe that OTT distribution can play an important role in ensuring the growth and development of local, network-affiliated television stations,” Ralph Oakley, chairman of the NBC affiliates board, said in a statement.
“We are happy to once again reinforce NBC’s commitment to and recognition of the value of the affiliate partnership and that of local broadcasters. This agreement in the digital space reaffirms that commitment,” said Jean Dietze, president NBC affiliate relations.
Financial details of the agreement were not disclosed for affiliates choosing to participate in OTT video.