Please correct me if I am wrong but I believe that local stations charge cable and internet streaming companies fees to broadcast their networks. Therefore Locast reduces the incentive of viewers to pay a subscription for their television.
local broadcast stations have begun demanding significant fees to carry programming that they offer for free over-the-air and via the Internet. We don’t think it’s fair to make customers pay for programming that others receive for free.
How Do Television Programming Costs Work? | RCN.