Crazy like a Fox: how broadcast networks could rake in billions by going cable-only

It's easy to dismiss the notion of America's over-the-air stalwarts going dark — it seems unthinkable. But it's not.

"If we go to cable, if we are forced to, then about 10 percent of America will not get our signal and I don't think they will like that," CBS chief Leslie Moonves said at a recent panel. And for Moonves, it could be a win-win: what if CBS and its fellow broadcasters are financially incentivized to the tune of billions of dollars in exchange for going off the air? It's not as far-fetched as it sounds. The Federal Communications Commission's so-called incentive auctions, which have been in development for several years, are designed to give television broadcasters a voluntary, opt-in opportunity to sell the lucrative RF spectrum that they own. The idea is simple: having run out of easy ways to keep up with exponential growth in the demand for high-speed wireless data — e.g., your LTE smartphone — the FCC is turning to television stations to pony up any airwaves they're not using or could live without in exchange for cash. Considering how hard high-quality spectrum is to come by, these auctions could generate billions upon billions of dollars for TV stations, possibly $20 billion or more by some estimates.