Movies

Broadcast television is in trouble. Stations are asking Washington for help

BBG News

At this week’s National Association of Broadcasters convention held in Las Vegas, the television station owners collectively pleaded for assistance from Washington, a cry that can essentially be encapsulated in a single word: “Help”.

Traditional television viewership has significantly decreased due to the rise in popularity of streaming video platforms. As a result, advertisers have started allocating their budgets towards digital advertising rather than traditional broadcasting. There is growing concern that if streaming services manage to secure the media rights for NFL games beyond 2029, they could further erode the viewership base of broadcast TV.

This situation prompts a pondering thought for television networks that have been providing news, amusement, and sports to their communities for many decades: What shape will this industry take in the next five years, and what measures can we take to safeguard it?

As a passionate follower, I can express that media giants like Nexstar Media Group, E.W. Scripps, and Fox Television Stations argue consolidation is crucial for their survival against the intense competition from major tech companies. However, existing regulations pose challenges to this consolidation process.

Currently, companies are asking the Federal Communications Commission (led by Brendan Carr, an appointee of President Trump) to remove restrictions that prevent them from owning more than two TV stations within a single market. The percentage of U.S. stations owned by one company is currently capped at 39%, a limit that hasn’t been increased since the pre-streaming era of 2004.

In a recent interview, NAB President and CEO Curtis LeGeyt stated that they’re not seeking charity from Washington, but rather, they aim for an equal chance to compete fairly.

Last week, the NAB submitted a request to the Federal Communications Commission, arguing that it’s high time they modify the rules due to the detrimental impact of the current restriction.

Tech firms like Google and Facebook enjoy fewer restrictions when it comes to their local or national operations. Currently, YouTube makes up about 11% of total television viewing time. Additionally, free, ad-supported streaming platforms such as Tubi are encroaching upon the territory traditionally held by regular TV broadcasts.

In summary, streaming videos account for approximately 43.5% of total television viewing, which is over two times higher than the share of broadcasters, as reported by Nielsen. By the year 2023, digital video ad revenue surged by 17%, reaching $57 billion, compared to only $18 billion for local TV stations. The latter have experienced a significant drop in earnings, with a decrease of 36% (when adjusted for inflation) since the year 2000, as per BIA Advisory Services.

I, as a supporter, find myself aligned with Carr’s stance, who’s been critical of national media outlets perceived as liberal by Trump, such as CBS, ABC, and NBC. However, he is widely recognized as an advocate for local broadcasting stations. In a recent public discussion, he expressed his desire to “reinvigorate” the power held by local broadcasters and has mentioned the need to regulate tech companies more stringently.

Nexstar, America’s largest television station owner, is airing news segments designed to gather public backing for modifying ownership rules. Their viewers are guided towards a website offering pre-made social media messages advocating for the removal of “regulations endangering the expansion of my local TV station.

A spokesperson for Nexstar, the company that operates KTLA in Los Angeles, stated that it’s a subject worth discussing by the news broadcasts and platforms themselves, which could potentially be impacted by the outdated regulations being challenged.

Television station proprietors argue that aid is crucial now, given the increased reliance on them for local news reports as print newspapers diminish.

According to a recent report by Magid Consulting, approximately forty percent of consumers favor television channels as their go-to source for local news updates. Previous research has consistently shown that local TV news is considered the most reliable and trustworthy source by many viewers.

In January, the significance of local TV news became evident as the prominent LA television channels operated non-stop to report on the tragic Palisades and Eaton fires, providing continuous coverage.

However, executives argue that the movement of viewers and advertising revenue towards digital platforms is rendering traditional news coverage financially unviable. Consequently, stations are compelled to expand their news broadcasting hours and establish dedicated streaming services in order to keep pace with online news providers.

Adam Symson, CEO of E.W. Scripps Co., a company that owns TV stations in Cincinnati, stated that it’s not financially viable to maintain five, six, seven, or eight local news channels over the long term due to insufficient funds. He explained that it doesn’t add up.

In various regions, Sinclair Broadcast Group has chosen to step back from local coverage, opting instead to air their centralized news service known as the National Desk.

Hollywood Inc.

In recent attempts by the Republican Party to cut down on government expenditure, these two publicly-funded organizations have often found themselves under scrutiny.

David Bradley, who oversees the News-Press & Gazette Co., a family business that operates television stations across cities like Palm Springs, Santa Barbara, and Monterey, expressed that the news operations would be stronger and more comprehensive if the company were allowed to control additional stations within a given market.

“We’re looking to beef up the capabilities of the markets we’re already in,” said Bradley.

In the world of journalism, the term ‘contraction’ isn’t exactly popular. This field often thinks that having multiple sources of news serves the public better. Merging TV newsrooms, however, could lead to a reduction in the number of available news jobs.

However, according to the Magid study, consumers perceive that they encounter excessive repetition in their viewing content and are inclined towards the concept of consolidation.

Jaime Spencer, COO of Magid, stated during a recent interview that “Today, the news being broadcast is considered as a marketable product.

Approximately 80% of those surveyed by Magid showed a positive or neutral response towards ownership consolidation. As Spencer pointed out, “If the product is appealing, people generally don’t concern themselves with who is in charge.

In an effort to strengthen their negotiating position, station groups are considering mergers as a strategy to better deal with the broadcast networks. Over time, the relationship between networks and affiliates has grown more complex, particularly because stations have been pressured by networks to pay higher fees for content.

Simultaneously, network programming is no longer limited to affiliates alone. In fact, content creators like CBS, ABC, and NBC are facing criticism for broadcasting shows following their initial release on the respective streaming services owned by these companies.

Carr has taken notice of the tense situation and voiced his concerns in a letter to Bob Iger, CEO of The Walt Disney Company. He expressed that ABC seems to be demanding excessive financial and operational commitments from local TV stations, under the threat of ending long-standing partnerships.

The tensions could escalate if the NFL opts out of its media rights deal in 2029.

In its seventh season, the league may choose to renegotiate the contract, creating an opportunity for streaming services to bid higher or even take a portion of the games from the original broadcast agreement.

For CBS, an early renewal of their agreement with the NFL might happen more quickly. The NFL retains the power to modify its partnership agreements when there’s a change in ownership. CBS’s parent company, Paramount Global, is aiming to finalize a merger with Skydance Media.

Netflix recently joined the world of professional football (NFL) by securing broadcasting rights for two holiday-themed games during the forthcoming season, and there’s a strong possibility they’ll seek additional matches. Amazon Prime Video, currently airing “Thursday Night Football,” might also consider expanding its sports offerings.

Broadcasters are feeling anxious due to the potential for technology firms to compete for a larger share of the NFL’s broadcasting rights, with each network currently shelling out approximately $2.3 billion per year (factoring in production costs).

A long-time executive in the world of sports television stated, “When the NFL has the upper hand, it’s common for them to get something out of their business partners.” This individual requested to remain anonymous.

As a passionate cinephile, I can’t help but appreciate the unique advantage that traditional broadcast television holds – it manages to grace the screens of almost every household across the United States, making it a universal and accessible medium for all.

A significant factor behind the NBA’s decision to incorporate Comcast into their latest 11-year, $76-billion media rights agreement was the potential to broadcast more games on free, traditional TV stations like NBC.

Additionally, local television stations are reaping advantages following the demise of regional sports cable networks. In response, sports teams from the NBA, NHL, and Major League Baseball have negotiated broadcast agreements with local channels to showcase their games, often accompanied by a subscription-based streaming platform, thereby ensuring they remain visible within their respective regions.

In addition to deregulation, station owners are looking for a technological lifeline.

Broadcasting conglomerates are eagerly anticipating that the Federal Communications Commission (FCC) will establish a definitive timeline for the switchover to NextGen Television – the newly coined term for the advanced broadcast signal format.

The tech enhances both visuals and audio clarity. Broadcasting networks can furthermore deliver customized ads and interactive content via an airborne antenna. Additionally, they can utilize these signals for data distribution purposes.

“I think it’s going to be a significant revenue stream for broadcasting,” Symson said.

Read More

2025-04-08 13:31

Previous post Binance’s Shocking Move: 7 Crypto Pairs to Vanish! What’s Next for Your Wallet?
Next post Celeb’s Wild Weekend and Infamous Quotes: Mickey Rourke’s Chaotic Love Life Revealed