Legacy television — especially local TV stations — needs its live programming of all types to survive, including news, sports, special events and now even video podcasts.
But what is their
real future — from an advertising or other perspective?
The trouble is that other platforms are getting into the same game — with the same focus — and not just digital media social-media
platforms, but YouTube and FAST channels in particular.
Perhaps the biggest positive factor is their “reach” of its local-market viewers when it comes to big brand awareness, with a continuing
focus on “broadcasting.” Is
that enough?
Year in and year out, “core” advertising (non-political) remains a major issue, with low single-digit percentage gains at best.
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This time of year is when those
concerns are being shelved as a big political advertising period in the form of the midterm elections lies ahead.
Other “core” positive news is that retransmission revenues are still a decent
generator for TV station groups — even as cable, satellite, and video TV distributors keep losing legacy, linear TV audiences.
There are troubling issues surrounding core advertising, which
continues to slip in the face of growing competition from still-growing digital media and social-media platforms (Meta, Google, TikTok) that can provide closer, directly connected return on media
investments.
So TV station groups continue to seek other revenue sources, including big local sports program content from teams and leagues that are looking elsewhere, away from the troubling
regional sports networks that are much too pricey for consumers, and offer little-to-no profits for TV distributors.
The jury is still out that soaring profits will come from that content.
What is left in terms of content — news, entertainment syndicated and other programming?
TV stations cannot invest much more on local TV news, as their schedule is packed with nearly
end-to-end newscasts on some outlets.
And they do not want to expand their entertainment-focused syndicated programming business. These, like other elements of legacy TV, continue to suffer
because of ever-stronger streaming platforms, including FAST channels (free ad-supported and streaming television).
What’s left? Consolidation — and that is why the bigger players keep
looking for market leverage.
This includes Nexstar Media Group’s $6.2 billion deal, which in its purchase of Tegna has hit some legal snags in the court’s halting integration of the two
companies.
The deal closed in March of this year. In addition, there is Sinclair’s effort to pursue a deal with Scripps, a mid-sized TV station group, which has now rebuffed
Sinclair’s pursuit.
Looking at all this, we wonder about a broad look at all “core” issues as TV stations — not just advertising.
How do TV stations define “core” these
days?
