I live in Denver and if our local stations ( TV and/or radio ) would ever do the pay subscriber thing that would fail here as well. With so many people moving here from all parts of the country a lot of them just have no interest in local Denver media. My own boss for example is from Buffalo and has been here for quite awhile however if I would mention something like "Denver's 7 or 9 News or even KOA Newsradio he would have NO idea what I was talking about. Steffan Tubbs or Steve Kelly ?? Time to roll the eyes, put your hands on your hips and yell "WHAT EVER ..I DON"T GIVE A DAMN "!!.
On the flip side of this if this sort of thing would ever become reality I would imagine that many would be willing to pay the fee to access the local stations from their hometowns rather to deal with whatever is on the air in Denver.
I never see local TV ratings published any more. It would be interesting to compare current ratings for local TV news in various time-slots with ratings from the 80s, or even early 90s. I suspect current ratings would be considerably lower.