• by Karlene Lukovitz  @KLmarketdaily, March 9, 2023

In another in a growing number of contract disputes between network TV affiliates and virtual multichannel video programming distributors (vMVPDs), Sinclair Broadcast Group’s ABC affiliates have been dropped from Hulu+ Live TV.

On Wednesday, the Hulu vMVPD notified affected customers that it no longer had broadcast rights for their local ABC channels. The companies have not publicly announced the development, or stated how many markets are affected, but Sinclair reportedly owns 34 channels that are exclusively or partially run as ABC affiliates. 

Carriage agreements with vMVPDs have normally been handled by the networks, but affiliates have grown restive as networks’ parent companies have increasingly shifted their focus from traditional TV to streaming ventures. 

Last month, CBS affiliates owned by Sinclair, Nexstar Media Group, Gray Television, E.W. Scripps Co., Tegna, Hearst Television and Cox Media Group removed their signals from FuboTV after rejecting a carriage renewal deal reached by CBS and FuboTV. 

The affiliates’ board argued that affiliates should be able to negotiate directly with vMVPDs. The affiliates also contend that retransmission regulations need to be changed to allow them to better represent their interests.

To substitute for local affiliates’ feeds, CBS parent Paramount Global began providing FuboTV with a national network feed of programming from the CBS News Streaming Network, which features no local content. 

As of this posting, Disney had not moved to offer a national feed to replace the missing local affiliates.

Since only some Hulu+ Live TV markets are affected, the Hulu website now allows prospective subscribers to determine, using their zip codes, whether or not they will have access to their local ABC channels. In affected markets, ABC is listed as “on demand only,” meaning that national ABC content will be available to stream the day after it is shown live, according to StreamingBetter. 

The dispute between Hulu+ Live TV and the ABC affiliates could be further complicated because Disney both controls Hulu and owns ABC, and possibly also by Sinclair’s troubles with its Diamond Sports Group RSNs business, which could be headed for bankruptcy. 

However, in 2021, Sinclair ultimately resolved a similar, months-long dispute with CBS affiliates.