We’re about to see a major shift in broadcast TV unlike anything we’ve seen before. Big statement, but it’s true if a few things fall into place.
While radio consolidated years ago, letting big ownership groups control a significant number of stations in a marketplace, the FCC has limited anyone from owning a Big Four (ABC, CBS, NBC, FOX) from owning more than one in a market. There have been a few deals that have bypassed these rules by using what industry insiders call sidecar deals. One owner for one station and then a side deal with another owner to operate another station. While technically under separate ownership, in reality one owner typically controls both properties.
There have also been a few dual ownership deals that have made it through the regulatory process, claiming hardship or other circumstances.
But now? The floodgates look like they’re opening.
The FCC has signaled it’s going to repeal ownership rules and already the deal-making has begun.
Nexstar’s the nation’s largest ownership group, covering about 70% of the country, and owns or partners with about 200 statins in 116 markets. It also owns the CW. Now, they’re making noise about acquiring Tegna, the third-largest group with 64 stations. FTVLive reported this first. Now, according to the WSJ, the two are in advanced talks which could be finalized soon.
This would give them control of at least two of the market’s top four networks in more than 30 new markets.
Meanwhile, the nation’s second-largest group, Gray, says it is buying 10 stations from Allen Media, creating duopolies in seven markets.
What’s it mean?
For employees? Layoffs as stations are consolidated. Likely one manager oversees both.
For viewers? Well, that depends. If you’re not local news viewers, there’s likely little change coming. But the local news is typically the biggest change. In many cases, this will mean merged newsroom and simulcast newscasts. In others, there may be separate brands and shared resources behind the scenes.
While station owners tout that it’s a good thing to secure local news coverage in markets, it doesn’t always work out that way. Viewers are often left with less choice in where they get their news and similar coverage across multiple stations.
Will anyone care? That’s the big question.
The fundamental dynamics of how stations generate revenue have changed. Declines in viewership are significant as people move to streaming. Fewer viewers, fewer ad dollars. Marketers are increasingly turning to streaming and digital marketing. Less advertiser dollars. As people drop cable, there’s smaller payments from cable operators to stations — many which have gotten out of the TV business altogether to focus on internet services.
Something had to give, and it looks like it’s happening now.
As they say, stay tuned.
About the Author
Paul Dughi is the CEO at StrongerContent.com with more than 30 years of experience as a journalist, content strategist, and Emmy-award winning writer/producer. Paul has earned more than 30 regional and national awards for journalistic excellence and earned credentials in SEO, content marketing, and AI optimization from Google. HubSpot, Moz, Facebook, LinkedIn, SEMRush, eMarketing Institute, Local Media Association, the Interactive Advertising Bureau (IAB), and Vanderbilt University.
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