I really think the FCC needs to step in on these types of matters and force both sides to go to binding arbitration.
Arbitration, by its very nature, would balance the assertions made by the two sides. As such, it would quickly arrive at the conclusion that there is value provided to the service providers that they haven't been paying for, and would find substantially in favor of the broadcasters. That might resolve the issue
quickly, but not necessarily in the best interests of viewers, because it would foster an even-stronger secondary revenue stream from subscriber to service provider to broadcaster. In other words, the end-result of binding arbitration is as likely as not to result in higher prices for consumers.
If, instead, things swing the other way, given the weakening of the primary revenue stream for over-the-air broadcast television, due (in part) to increasing commercial avoidance, over-the-air broadcast television could continue to degrade as a worthwhile investment for television production money. That'll prompt even more reduction in the production of comedies and dramas, and a commensurate increase in the amount of prime time devoted instead to reality shows. Again, a negative result for viewers.
Without commenting on what's good or bad (i.e., keeping this completely non-political), it is also unlikely that any change in the laws affecting this will be forthcoming. While the current administration does tend to favor that kind of approach, this is not a big enough issue for (specifically) voters for the administration to risk political capital on. The opposition can very easily use a move like this to paint the current administration with a big-government, anti-business brush. And even before that, opposing such government "intervention" is likely to gain conservative Senators enough so that they may even filibuster any such efforts.
First it was HGTV, then ABC and now FOX. Where will it end.
It'll end when ABC and Fox are getting at least as much money per subscriber from cable companies and satellite services as USA Network and TNT.