But, when a channel is being broadcast using a satellite up in the sky, that is not free to air. Someone is paying for each transponder on that satellite, for launching the satellite in the sky, and for maintaining the transmission of that satellite. The local channels might be free to air, where each of us lives. They aren't free to air in getting a place on a satellite. That is why we are charged for the locals if we subscribe to Dish Network, Directv, or even (related somewhat to this post) Cable TV's transmission of our local channels. If it costs those companies, it is going to in turn cost us to watch those channels with those companies.
The satellite provider pays all this, in exchange the local OTA broadcaster reaches more people and potentially increases ad revenue from have a larger audience. The broadcaster basically is getting greedy by double dipping.