Optimum Rejects TEGNA's Fee Hikes

(RTTNews) - Optimum (OPTU) announced that it rejected excessive and unjustified demands from TEGNA, the broadcast provider behind certain local ABC, CBS, FOX, and NBC-affiliated stations as well as the CW. TEGNA is seeking fee increases that are divorced from market reality, including a 30% hike for major network affiliates and a 50% increase for the CW.

According to Optimum, TEGNA's approach attempts to drive up costs on two fronts: imposing steep premiums on major networks while simultaneously raising rates for lower-viewership channels like the CW. This pricing strategy disregards the current media environment, where consumers demand value and flexibility, and highlights the disconnect between cost and actual value. It underscores how outdated today's programming model has become.

Optimum noted that the demands cannot be viewed in isolation. They are directly tied to the looming merger of Nexstar and TEGNA, which threatens to accelerate consolidation in the broadcasting industry. Optimum's negotiations with both TEGNA and Nexstar—set to expire just one week apart—reveal the darker consequences of broadcaster consolidation, where competition shrinks and consumers ultimately bear the burden.