On Thursday 9/2/2021 Locast, a streaming service that streamed local network channels like ABC, CBS, Fox, and ABC suspended its operations after losing a major court decision the day prior.
The TV Streaming Service Locast was a way people could watch their locast broadcast channels without using an antenna or paying for an expensive cable package. The service would stream a broadcast of all the local over-the-air channels in 34 US TV markets. The service could reach over 50% of households in the US. Locast was considered a non-profit that depended on its user’s donations to maintain and expand into more TV markets. While the service was free, the stream would be interrupted every 15 minutes to request a monthly $5 donation. Once a user donated, the interruptions would stop, and all the local channels in their area could be streamed through the Locast App or on the Locast Website.
Locast was sued in July 2019 by ABC, CBS, Fox, and NBC. The lawsuit argued that Locast must “secure the consent of the broadcasters to retransmit the broadcast signals,” and the major networks also argued that Locast needs a license to rebroadcast copyrighted TV programs. A key defense for Locast was that they were a nonprofit and according to U.S. Copyright law, nonprofit organizations are exempt from copyright infringement if they broadcast a secondary transmission “without any purpose of direct or indirect commercial advantage, and without charge to the recipients of the secondary transmission other than assessments necessary to defray the actual and reasonable costs of maintaining and operating the secondary transmission service.
Yesterday Judge Louis Stanton from the US District Court for the Southern District of New York dismissed Locast’s copyright exemption defense. The judge ruled Locast isn’t exempt since they use donations to expand the service into more TV markets. Donations from users accounted for $4.37 million of Locast’s $4.52 million in revenue in 2020. The companies operating costs were $2.4 million. The Judge said that Locast made “far more money from user charges than was necessary to defray its costs.” While Locast showed the difference was used in expanding the operation, the judge found “the exemption doesn’t allow for the cost of expanding into new markets.”
With Locast’s key defense thrown out, the organization was forced to suspend its operations on Thursday, September 2, 2021. Locast’s Homepage currently shows a banner stating, “As a nonprofit, Locast was designed from the very beginning to operate in accordance with the strict letter of the law, but in response to the court’s recent rulings, with which we respectfully disagree, we are hereby suspending operations, effective immediately.”
Prior to suspending their service, Locast was available in the following TV Markets.
- Atlanta, GA
- Baltimore, MD
- Boston, MA
- Charlotte, NC
- Cleveland, OH
- Chicago, IL
- Columbus, OH
- Dallas, TX
- Denver, CO
- Detroit, MI
- Houston, TX
- Indianapolis, IN
- Los Angeles, CA
- Madison, WI
- Miami, FL
- Minneapolis, MN
- New York, NY
- Orlando, FL
- Philadelphia, PA
- Phoenix, AZ
- Portland, OR
- Puerto Rico
- Rapid City, SD
- Raleigh-Durham, NC
- Sacramento, CA
- San Francisco, CA
- Scranton, PA
- Seattle, WA
- Sioux City, IA
- Sioux Falls, SD
- Tampa Bay, FL
- Tri-Cities (TN, KY, and VA)
- Washington, D.C
- West Palm Beach, FL
If you were one of nearly a million people depending on Locast to watch local channels, see our article on How To Watch Local channels for other alternatives.
