Nexstar CEO Wants to “Move With a Sense of Urgency” on Consolidation With GOP Control Likely

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As a seasoned media observer with decades of experience under my belt, I can’t help but feel a surge of excitement when I hear Perry Sook’s words. The man is a visionary, a trailblazer in an industry that’s constantly evolving. His focus on consolidation and deregulation is music to my ears, as it’s clear he understands the realities of today’s competitive landscape.

Nexstar, a dominant force in local television, is keen on growing further via mergers or other transactions, given the expected Republican control of the White House and possibly both congressional chambers as well.

During the quarterly financial meeting, CEO Perry Sook expressed his plans to act swiftly in striking deals, stating that major tech companies pose a significant threat to local TV stations. Notably, deregulation is deemed the top priority by both our company and the National Association of Broadcasters (NAB).

It’s clear that the outdated restrictions on broadcaster ownership no longer align with the competitive media landscape we see today, as stated by Sook. We think there’s potential for our shareholders to gain value through more consolidation, and this could also lead to real, innovative benefits in local news that is factual and impartial – something essential for the American public.

Competing with tech giants, who dominate every screen across America, from smartphones to TVs, remains our toughest challenge. However, our efforts are hindered by regulations that haven’t been revised since 2004. We need a level playing field for all screens in America, not just a few, to benefit both viewers and advertisers. It’s high time we push for this reform, and as always, Nexstar is ready to take the lead,” Sook said.

Additionally, Sook expressed insights about the advertising sector. Notably, political advertising demonstrated significant strength, even setting a new record at $491 million so far this year, an increase from $479 million in 2020. On the other hand, non-political ads continue to show weakness.

“We had conversations with literally hundreds of advertisers, and there was a consensus, or a sense out there, that advertisers were avoiding news as a daypart, national news, national cable news as a daypart because of what they saw as a toxic environment,” Sook said. “We obviously have been working hard to dispel that notion as it relates to NewsNation, we think our proof points on all of the unbiased surveys and original content surveys that are out there continue to put us right down the middle of the fairway with our content, and that this is an island in an environment that may be on others is more toxic.”

He further proposed that the media’s approach to covering a potential second term for Trump would be distinct from its approach during his initial term.

As a gamer, I’ve been keeping up with various broadcasts and cable networks lately, and it appears that more people are starting to favor objective, fact-based reporting. It seems like we might be moving away from the overt activism in journalism that has been prevalent for some time now.

As a gamer, I can’t help but draw some parallels between Nexstar and Fox Corp., the latter of which saw extraordinary earnings this past week, sending their stocks soaring.

Sook stated that companies such as Nexstar and Fox aren’t facing the same struggles as larger media firms with extensive cable entertainment network exposure, primarily because they possess a streamlined collection of linear television assets. This includes a broadcast network, a cable news network, and a portfolio of local TV stations. The programming strategy for both businesses is focused on news and sports, without the baggage of underperforming cable network assets. In the current climate, their businesses are thriving, and Sook believes that the value of broadcast networks and stations will only increase, especially considering their importance to sports teams and leagues.

Despite the progress made at The CW, owned by Nexstar, there’s still work ahead. Although the company managed to decrease losses by $36 million compared to last year in the recent quarter, and plans to lower programming costs to approximately $270 million by 2024, which is a significant reduction from the $560 million spent in 2022.

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2024-11-07 20:06