Will LocalBTV Become a Viable and Legal Locast Alternative?

LocalBTV offers free streaming local channels in many cities

When Locast shut down after losing a legal battle with the major networks, millions of users were left without access to local channels at an affordable price. Antennas offer free access to these channels, but many people live in areas without good reception.

Imperfect Alternatives to Locast
Without a streaming option, many households either have to do without local networks or pay $60+ a month for streaming TV services like YouTubeTV, Hulu with Live TV, or Fubo. Sling TV is about half that price, but it only offers two local channels (NBC and Fox) and only in a limited number of cities. The cheapest option available for a major network is Paramount Plus, which offers live CBS TV on its Premium $10 a month plan or $99 annual plan (at the time of writing). Peacock TV provides lots of NBC content for $4.99 a month or $50 for the yearly plan, although not live NBC TV. Households with tight budgets don't have many good options.

However, there is a free and legal local television streaming service available in 21 markets as I write this. That service is called LocalBTV. By operating legally, unlike Locast, LocalBTV has a significant downside. It doesn't offer the major networks: CBS, NBC, ABC, and Fox. It only offers channels it gets permission to carry. LocalBTV is trying to obtain permission to carry those channels, but that may take time.

While this may be a dealbreaker for some, LocalBTV is an ideal option for those on fixed incomes, especially retired people. It offers PBS stations, various foreign language options, and channels showing reruns of classic dramas and sitcoms. 

About LocalBTV
LocalBTV offers local TV stations on smartphones, computers, and connected TVs. It is owned by Didja, a company led by CEO Jim Long. He "has 30+ years of experience in the media and broadcast industry as a founder, investor, adviser and business leader. He received a BS in Electrical Engineering and Computer Science from UC Berkeley and an MBA from Harvard University."

LocalBTV has lots of features for a free service, including 30 to 40 channels, 1TB of storage (enough to hold 300 hours of programming), customized channel listings, and closed captions. Users can pause, rewind and fast-forward recorded programming. The LocalBTV app is available for Roku, Apple TV, Amazon Fire TV, and Google Chromecast devices.

The Major Networks on LocalBTV
LocalBTV wants to offer the major networks. However, if that happens, they won't be available for free. They will be part of a Premium package.

"The free version has 25 or more channels, but when we release our paid premium version you'll get more than 50 local stations including the major network stations."

Locast.org charged $5.50 a month to get uninterrupted viewing. It's unlikely that LocalBTV Premium would be that cheap. A subscription cost of $9.99 a month may be an attractive price for households that used to subscribe to Locast. After all, it comes with a DVR and other features Locast didn't offer. However, that low price may not be enough to cover licensing costs. It will be unfortunate if LocalBTV Premium costs far more than former Locast users can reasonably pay.

The other problem is that ABC, NBC, CBS, and Fox may have little incentive to be part of LocalBTV Premium. All the major networks own other entertainment companies. When they negotiate with satellite, cable, and live streaming TV services, they often use their popular channels as leverage to get their less popular channels onto those platforms. In 2020, YouTube TV raised its subscription price from $50 to $65 when it included BET, CMT, Comedy Central, and Paramount Network, owned by ViacomCBS.

Bundling channels like this means that satellite, cable, and live streaming TV subscribers subsidize channels they never watch. Having access to local networks is a big reason many people continue to pay hundreds a year for dozens of channels they don't need. The major networks may have little incentive to join LocalBTV if that could potentially draw some viewers away from platforms that subsidize their less popular offerings.

LocalBTV's Jim Long acknowledged this problem in the Fast Company article: This free streaming service has the local channels others lack:

“The networks have been really scared about cord-cutting because, not only do they lose revenue for ABC, they lose revenue for the Disney Channel, ESPN, and all that other stuff.”

However, there is potential to pick up millions of viewers who don't subscribe to any service that offers local networks. The major networks may gain from bundling, but they also lose because there is a vast untapped market of people who have learned to live without local channels. A large portion of this untapped market might find LocalBTV Premium appealing if the subscription price is reasonable.

Jim Long hopes to bring the major networks on board, but he's also realistic about the prospect.

“We’re running our business as if we’re not counting on it.”

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