Disney may be considering selling ABC O&Os

[MCarney]

http://nypost.com/2013/10/17/disney-once-again-considering-sale-of-local-tv-stations/

It seems that the networks are more interested in distribution of content these days. I fully expected Comcast/NBCU to be the first to divest their O&Os and start moving network distribution towards cable if necessary. Owning stations just because they've been in the portfolio for decades doesn't cut it anymore. NBC and ABC have sold their radio assets (except for Disney retaining Radio Disney and ESPN, which operate more as distributors of content).

 

[KeithE4]

http://nypost.com/2013/10/17/disney-once-again-considering-sale-of-local-tv-stations/
It seems that the networks are more interested in distribution of content these days. I fully expected Comcast/NBCU to be the first to divest their O&Os and start moving network distribution towards cable if necessary. Owning stations just because they've been in the portfolio for decades doesn't cut it anymore. NBC and ABC have sold their radio assets (except for Disney retaining Radio Disney and ESPN, which operate more as distributors of content).

Like I mentioned in another similar thread, I can see ABC dumping mid-markets Fresno and Raleigh/Durham, but not the biggies in NY, LA, Chicago, Philly, SF, and Houston.

 

[TheBigA]

This is something both Disney and Comcast have been discussing for a long time. Disney first considered selling TV stations the same time they did the Citadel deal for radio. They see themselves as content providers, not owners of real estate. The problem is that it's more expensive to program to affiliates than O&Os. More cost effective to own the means of distribution, especially when you're grandfathered in to a lot of things. One thing Fox discovered is when you sell stations, then you have to be nice to them to keep the affiliation, and that costs money. So it's a battle. I don't think either is rushing to sell right now. Just like CBS likes the sales rumors, they're also very content with status quo.

 

[1069_KIFR]

Like I mentioned in another similar thread, I can see ABC dumping mid-markets Fresno and Raleigh/Durham, but not the biggies in NY, LA, Chicago, Philly, SF, and Houston.

Replied in the California TV Section.

 

[Mediafrog+]

If ABC dumps the O&O's I suspect Comcast/NBC will want to do the same. I sense a bit more resistance from FOX and CBS, although FOX was threatening to take everything to cable distribution in recent retransmission disputes.

ABC O&O's also had layoffs recently.

Shall we speculate on potential new owners? I suspect there are a few ABC O&O staffers that might be a little nervous about Sinclair, which tried to steal Belo out of Gannett's hands.

ABC owns KTRK here in Houston so we'll keep our ears to the ground.

 

[bpatrick]

I'm in WTVD's coverage area so I'll also be keeping my eyes and ears open.
NBC would probably love to get it as its Raleigh/Durham affiliate (CBS is doing
just fine on WRAL, thank you), although I don't really expect to see that happen.
I do agree, though, that WTVD and KFSN are probably most vulnerable to being
sold off by ABC, just as Disney did with WJRT and WTVG.

 

[nathannah]

I'm in WTVD's coverage area so I'll also be keeping my eyes and ears open.
NBC would probably love to get it as its Raleigh/Durham affiliate (CBS is doing
just fine on WRAL, thank you), although I don't really expect to see that happen.

Probably not going to happen since Media General likely got a long affiliation deal for WNCN when they purchased it from NBC in 2006 (judging from basics, probably until just after the 2016 Olympics). WTVD is safe as long as the Triangle-Fayetteville area continues to grow as it has.

 

[bpatrick]

You'll notice I said I don't really expect it to happen, although the
thought of moving from Ch. 17 to Ch. 11 is probably tempting.
However, there's a lot more involved, like changing TVD's branding
from "ABC11." And NBC has a poor track record in this market
and has ever since WRAL switched from NBC to ABC way back in
1962. So don't think I'm really plumping for a switch--we've had
enough already, with the ABC/CBS switch in '85 when TVD became
an ABC o&o, the switch of Fox from 22 to 50, and NBC from 28
to 17.

These ten-year affiliation contracts, I think, were designed to cut
down on the amount of switching that began when ABC went to
number one in the '70s and was picking off stations from CBS and
NBC seemingly every month.

One thing I do believe is certain: WTVD will not end up with Sinclair;
it already has a duopoly of WLFL/22 (CW) and WRDC/28 (MyNetwork).

 

[billrecto]

agreed and I seen it on the CA TV thread.

 

[nelsonincharlotte]

Gannett would work for WTVD. That would give them stations in Raleigh, Greensboro and Charlotte (when the Belo deal closes) and they would have one of each of the Big 3 in NC.

 

[JeeperOne]

Tribune would also work for WTVD as (Once the Local TV deal closes) they own WGHP 8 also in Greensboro

Incidentally, if Gannett were to buy WTVD, that would mean they own an affiliate in NC of EACH of the Big 3 (Yeah yeah opinions of NBC vary but still). What are the odds of that happening?

Cheers & 73

 

[ding12]

I find the quality of ABC to be downgraded. The asset dump of it's O&Os is like a large hotel chain trying to dump a number of old hotel buildings that are no longer wanted where the owner doesn't want to invest in them.

The network relies on shows like Revenge, Scandal, Backstabbing, Betrayal, etc., Dancing with the Stars that has yet to have a movie star on it, and then there is the cheesy/tabloid like graphics for GMA and abc.com. They lost Oprah, and Katie has failed for their daytime. The network is just operated as one big tabloid.

Disney has considered ABC second fiddle to the ESPN business for years anyways.

The same isn't true with say CBS where CBS keeps a level of quality at it's network and doesn't treat it as one of the side businesses in their operation.

 

[Joseph_Gallant]

Although FCC rules would have to be changed, what if a broadcast network could own at least one station in every market (and maybe two stations in each of the top 10 to 20 markets)??

You may then see Disney/ABC, CBS, Fox, and Comcast/NBC rush to try to buy all the incumbent affiliates of their broadcast networks.

It might cost a lot of money, but look at the savings down the line: Each network would have about 200 owned-and-operated stations and zero affiliates. Compensating them for network programs (what is left of it) would vanish, and local station profits can help the networks even more.

 

[TVCOOL]

great idea it would improve the quality of TV programming

 

[TheBigA]

Although FCC rules would have to be changed, what if a broadcast network could own at least one station in every market (and maybe two stations in each of the top 10 to 20 markets)??

This thread is about how one network is looking to SELL its O&Os. I don't see any network expanding beyond the Top 50. Way too expensive. It's more likely that networks will focus on content creation and leave the real estate & licensee business to someone else.

 

[bringbackradio]

I am surprised ABC kept Fresno and the Raleigh/Durham stations all that time. They coulda swapped those out and gained two more major city affiliates in, say, Washington and Miami years down the line. It's wishful thinking but WJLA in DC would have made a great fit for the Disney portfolio easy since ABC has a news bureau there (then again everybody else does too). It's already called "ABC 7" anyway. Sinclair would just run it in the ground anyway like an independent-level network affiliate. And WPLG Miami would have had the abc dot logo lodged in the "zero" of channel 10 (think 'ABC 10' OR '10 ABC'), if ABC were to pry it from Post Newsweek.

 

[billrecto]

I am surprised ABC kept Fresno and the Raleigh/Durham stations all that time. They coulda swapped those out and gained two more major city affiliates in, say, Washington and Miami years down the line. It's wishful thinking but WJLA in DC would have made a great fit for the Disney portfolio easy since ABC has a news bureau there (then again everybody else does too). It's already called "ABC 7" anyway. Sinclair would just run it in the ground anyway like an independent-level network affiliate. And WPLG Miami would have had the abc dot logo lodged in the "zero" of channel 10 (think 'ABC 10' OR '10 ABC'), if ABC were to pry it from Post Newsweek.

Yes I'm Surprised that ABC Disney Never thought about Buying WJLA in 2006-2007 when they sold the ABC Radio and O&O's to Citadel Radio Now Cumulus Radio. Or Dallas would have been my second bet.