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What would the real alternative be? A single nonprofit in every market collecting operating donations for just that market?

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I think so, like the business model used for US public television and public radio.

There are some TV translator clubs around the US that are supported by voluntary subscriptions, who also insert linear streams of hyper-local content and public-access content. I would find value in that, and would consider supporting. (Those translator clubs use low power OTA transmitters, but the Opinion and Order seems to put them on the same footing as a local OTT service)

If you look at the streaming model of public TV though, it seems like you basically don’t get content beyond some very token level unless you pay for a subscription.

Yeah, that's the very thing that makes me a financial supporter of public radio and not public television (specifically PBS-member stations).

An organization using the exemption of course wouldn't/couldn't implement a paywall.

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