Do networks owe its affiliates? Well, yeah, or else nobody would be watching. Of all the major networks there isn't a CBS, NBC, ABC or Fox universal station. Without the help of local television affiliates, network-produced shows and programs would have to look elsewhere for revenue. With media organizations owning a large portion of local television, they have the final say in what stations run for programming.
Could you imagine ESPN-Lawrence? That would be pretty cool, but the reality of it happening isn’t about to happen any time soon. The bottom line is that networks indirectly fund local television through advertising means. If the likes of the 4-major networks didn’t provide small-market television stations with a signal, then it would be difficult for TV to survive (unless it's in Europe).
It's All About the Washingtons
Courtesy: The Simple Dollar.com
Basically the networks hold bargaining power over local television. I propose a solution in what I call a “Robin Hood effect.” They could pony up money in which powerful markets such as New York, Los Angeles and Chicago gross the dollars that provide for local televisions to stay in business. The reality that the Top 10 markets would actually do this is not very high, but at the same time would help stimulate revenue that could make the business of television a little more competitive, and not monopolistic.
Since the likelihood of this happening is slim, it’s up to the networks to give some money and help out those less fortunate (local TV). This time next year when all broadcasters switch over to a digital signal, it will be up to the owners of local affiliates to spend the cash to do so.