tested said:3. Economics. The networks have each invested billions in local tv stations. Moving to cable only would cut the value of those stations severely because they would no longer have the network programming.
If I'm reading Chase Carey's remarks at NAB yesterday correctly, it looks like he's suggesting that the stations (O&O and affiliates) would survive and be part of the plan.
A way to do that would be to turn off their transmitters and only feed their signals (including the FOX network programming) to the local headends for cable and satellite in their markets (which they already do). That would protect most jobs and bring savings in terms of transmitter operating and maintenance costs.
The downside would be the loss in eyeballs until and unless pure OTA viewers transition to cable or ADS (Alternative Delivery Systems), but it's a small percentage, so the slight decline in ad revenue might be offset by the operation and maintenance savings. Here's a market-by-market list of Cable/ADS penetration as of November, 2011:
http://admin.tvb.org/iframe/dma/Cable_and_ADS_Penetration_by_DMA.asp?sortby=DMAName