The FCC is preparing for a spectrum auction late next March in an effort to coax TV stations into giving up their spectrum for large loads of cash. Basically the FCC wants to free up the wave spectrum used by TV stations to expand the growing demand for wireless broadband.
On the surface this may not sound like it effects your average Roku user, but if you are someone who cut the cord because you still had the ability to receive local network TV via an antennae this could impact you negatively according to a report by Media Life Magazine.
The report states cable and satellite companies will be big winners because, “fewer over-the air stations to choose from, some number of cord-cutters will be forced to subscribe to cable or satellite. Imagine the housewife who’s watched the same soap opera for the past 15 years. Suddenly, it’s not there anymore. That station has gone cable only and the show is not available online. She has no choice but to subscribe.”
Cord cutters will be the big losers in this auction because, “With fewer over-the-air stations available, cord-cutters will be faced with the choice of either signing up for cable or largely forgoing TV entirely for over-the-top services. Example: our longtime housewife and soap opera fan.”
One could argue this will also expedite local and national networks switch to over the top (OTT) streaming options as well. I could see a local station selling their spectrum and relaunching as an online only station to deliver local news and sports.
What do you think? Comment below.