There was a proposal from both Dish and DirecTV to allow LIL's as a separate option to subscribers that allowed the local station to charge whatever it wanted for its channel. The DBS companies would bill for it, but would NOT keep any of that money; they would forward 100% of the fee to the local station/media company. DBS would pay for the cost of providing the stations on their systems at no cost to the broadcasters, but the broadcasters would make their decision to charge whatever or not charge, and they got all that money.
Of course, it went nowhere because NAB ab-whores that idea, and it makes too much sense for the consumer. Of course, local broadcaster and the big media giants who own some of them know that there would be far too many people who feel some of their local stations aren't worth it at any price. That is the same truth for Regional Sports nets, as well. This is why the broadcasters and RSN's want their channels to earn a fee for each and every subscriber of the MVPD, whether they view the channel or not. The OTA's would still make money, just not the very lucrative re-transmission fees, but the RSN's know they would go out of business if they had to depend on an a la carte rate for their channels. That would be the free market at work.