Gannett, Hearst, Belo, Scripps: Who taps out first?

[jdb820]

It's obvious that a second round of broadcast consolidation has begun under the watch of an administration which just doesn't seem to care. Right now it's only two heavily-leveraged, TV-only companies at the wheel but inevitably the more diverse companies might have to consolidate.

I've heard some rumors through the years of assorted combinations of the Gannett/Hearst/Belo/Scripps quartet being combined: Gannett/Hearst, Belo/Hearst, Belo/Scripps, Hearst/Scripps, et Al. Thing is when does something like this become necessity. 20ish stations (less for Scripps), a bunch of newspapers, and some cable TV (for Scripps/Hearst) may not make it in the second Wild West of 2010s TV. Not with the Sinclairs of the world with unlimited funds credit willing to buy everything. At some point, consolidation within these ranks may become necessary, question is who buys whom.

If they do, it's their fault for sitting on the sidelines or shooting themselves in the feet.

 

[Firebird]

Media General and Young Broadcasting announce a merger:

http://www.bizjournals.com/washington/prnewswire/press_releases/Virginia/2013/06/06/PH27302

 

[justpassingthough]

I envision in a world in which the broadcast networks transform into cable networks, and local broadcast stations' value rests in their news programming and syndicated fare. Consolidation probably makes sense to these companies as they realize that one day in the future, these broadcast stations will be less valuable commodities, and there will be even greater economies of scale by combining news gathering operations and having a large station group with which to buy popular syndicated fare.

 

[Morgan Wick]

And I envision a world where a la carte transforms local broadcast stations' value into the only linear platform guaranteed to be available to a wide audience, which means the most popular programming will, for the most part, remain on broadcast.

 

[justpassingthough]

And I envision a world where a la carte transforms local broadcast stations' value into the only linear platform guaranteed to be available to a wide audience, which means the most popular programming will, for the most part, remain on broadcast.

If the network programming is gone from local broadcast stations, it will be interesting to see how the MSOs and satellite providers place a value on retransmission fees, or if some of the local stations will need to invoke must carry to stay in people's homes (assuming that cord cutting isn't entirely the wave of the future).

 

[Morgan Wick]

And I envision a world where a la carte transforms local broadcast stations' value into the only linear platform guaranteed to be available to a wide audience, which means the most popular programming will, for the most part, remain on broadcast.

If the network programming is gone from local broadcast stations, it will be interesting to see how the MSOs and satellite providers place a value on retransmission fees, or if some of the local stations will need to invoke must carry to stay in people's homes (assuming that cord cutting isn't entirely the wave of the future).

I don't think any network leaves broadcast unless Congress and the FCC don't do anything to protect OTA.

By the way, with Media General backing it, I wonder if KRON might end up getting a real network affiliation back.

 

[justpassingthough]

And I envision a world where a la carte transforms local broadcast stations' value into the only linear platform guaranteed to be available to a wide audience, which means the most popular programming will, for the most part, remain on broadcast.

If the network programming is gone from local broadcast stations, it will be interesting to see how the MSOs and satellite providers place a value on retransmission fees, or if some of the local stations will need to invoke must carry to stay in people's homes (assuming that cord cutting isn't entirely the wave of the future).

I don't think any network leaves broadcast unless Congress and the FCC don't do anything to protect OTA.

Congress and especially the FCC have had a rather hands-off approach to telecommunications since the Clinton era. I wouldn't expect them to do anything about the broadcasters leaving over the air. Broadcasters use the public airwaves to "serve the public good", but they are not required to do so. They can pull their product and stick it on a cable network today if they wanted to. Congress and the FCC only have oversight over what happens over the airwaves, so what happens to the O&Os after the network leaves would be left to the FCC but it really doesn't affect what a network does. The corporations who own all the networks have enough lobbyists to nearly ensure that there won't be a fight when or if the networks are ready to pull up stakes.

Plus, at some point, the FCC is going to need part of that spectrum for more mobile communciations services and would probably welcome a few broadcasters turning in their licenses.

 

[taylorjsdad]

And I envision a world where a la carte transforms local broadcast stations' value into the only linear platform guaranteed to be available to a wide audience, which means the most popular programming will, for the most part, remain on broadcast.

If the network programming is gone from local broadcast stations, it will be interesting to see how the MSOs and satellite providers place a value on retransmission fees, or if some of the local stations will need to invoke must carry to stay in people's homes (assuming that cord cutting isn't entirely the wave of the future).

I don't think any network leaves broadcast unless Congress and the FCC don't do anything to protect OTA.

By the way, with Media General backing it, I wonder if KRON might end up getting a real network affiliation back.

With which network??? ABC owns KGO-TV, CBS owns KPIX, NBC owns KNTV and from what I have heard and read FOX is happy with Cox's KTVU. Only chance I see is if NBC wants to sell KNTV and move the affiliation back to KRON but of course they have been trying to sell stations in Hartford and Miami for a few years now.

 

[KeithE4]

By the way, with Media General backing it, I wonder if KRON might end up getting a real network affiliation back.

With which network??? ABC owns KGO-TV, CBS owns KPIX, NBC owns KNTV and from what I have heard and read FOX is happy with Cox's KTVU. Only chance I see is if NBC wants to sell KNTV and move the affiliation back to KRON but of course they have been trying to sell stations in Hartford and Miami for a few years now.

Miami (#16) and Hartford (#30) are outside the Top 10. The Bay Area is Market #6. NBC won't get out of SF/Oak/SJ.

 

[TheBigA]

I envision in a world in which the broadcast networks transform into cable networks,

Several of those companies are already invested in cable nets, so the first steps are being taken.

Congress and especially the FCC have had a rather hands-off approach to telecommunications since the Clinton era.

There really hasn't been any new regulations since Reagan. He was the one who cut the FCC budget. Docket 80-90 happened in 1983 under his watch, and everything since then has been built around deregulation and coping with increased competition.

 

[mescutia]

\I've heard some rumors through the years of assorted combinations of the Gannett/Hearst/Belo/Scripps quartet being combined: Gannett/Hearst, Belo/Hearst, Belo/Scripps, Hearst/Scripps, et Al. Thing is when does something like this become necessity. 20ish stations (less for Scripps), a bunch of newspapers, and some cable TV (for Scripps/Hearst) may not make it in the second Wild West of 2010s TV. Not with the Sinclairs of the world with unlimited funds credit willing to buy everything. At some point, consolidation within these ranks may become necessary, question is who buys whom.

Why would mergers between any of those four groups become necessary? Just because Sinclair and Nexstar are so big?

I think it's more likely that we'll see the four of them acquiring smaller station groups to add to their respective portfolios. I read somewhere (here, I think) that Belo is probably waiting patiently for the Griffin stations (KOTV, KWTV, KQCW) to become available, and I would not be surprised if Sunbeam's WSVN, WHDH, and WLVI get new owners at some point in the next several years.

Also, I'm sure Belo, Gannett, Hearst, Scripps, and Lin are all seriously looking at Local TV's stations, though none of them can buy the entire group.

 

[Kent]

By the way, with Media General backing it, I wonder if KRON might end up getting a real network affiliation back.

Not likely. All the networks except Fox already own stations in the Bay Area, and the deal looks a lot like a Morris Trust. In other words, Media General runs the combined company, but Young shareholders will own most of it.

 

[mgsports]

KMBC/KCWE/This TV/ME TV Hearst and KSHB/KMCI/Live Well Network/COZI TV Scripps FOX4KC/Antenna TV Local TV

 

[ding12]

And I envision a world where a la carte transforms local broadcast stations' value into the only linear platform guaranteed to be available to a wide audience, which means the most popular programming will, for the most part, remain on broadcast.

If the network programming is gone from local broadcast stations, it will be interesting to see how the MSOs and satellite providers place a value on retransmission fees, or if some of the local stations will need to invoke must carry to stay in people's homes (assuming that cord cutting isn't entirely the wave of the future).

I don't think any network leaves broadcast unless Congress and the FCC don't do anything to protect OTA.

By the way, with Media General backing it, I wonder if KRON might end up getting a real network affiliation back.

Maybe it could be sold to Pappas Telecasting to become the Azteca America affiliate, although the Azteca affiliation is held by KEMO which is in North Bay.

 

[Morgan Wick]

And I envision a world where a la carte transforms local broadcast stations' value into the only linear platform guaranteed to be available to a wide audience, which means the most popular programming will, for the most part, remain on broadcast.

If the network programming is gone from local broadcast stations, it will be interesting to see how the MSOs and satellite providers place a value on retransmission fees, or if some of the local stations will need to invoke must carry to stay in people's homes (assuming that cord cutting isn't entirely the wave of the future).

I don't think any network leaves broadcast unless Congress and the FCC don't do anything to protect OTA.

By the way, with Media General backing it, I wonder if KRON might end up getting a real network affiliation back.

Maybe it could be sold to Pappas Telecasting to become the Azteca America affiliate, although the Azteca affiliation is held by KEMO which is in North Bay.

Ouch, from being a valuable NBC affiliate to Azteca America? I guess I was thinking about any effort to create a true fifth network...

 

[Brother]

Maybe it could be sold to Pappas Telecasting to become the Azteca America affiliate, although the Azteca affiliation is held by KEMO which is in North Bay.

Ouch, from being a valuable NBC affiliate to Azteca America? I guess I was thinking about any effort to create a true fifth network...

True fifth network? Phooey to that! Hey, since everyone around here is clamoring for the triumphant return of true independent stations, let's throw KRON into that mix as well. Give the MyNetworkTV time back to KRON so it can run news throughout primetime. Its news department may be a shell of its former self as an NBC affiliate, but it's there. Why not build around that, KRON/Media General? Give us radiodiscussions.com posters what we want!

 

[Sammi Brie]

And I envision a world where a la carte transforms local broadcast stations' value into the only linear platform guaranteed to be available to a wide audience, which means the most popular programming will, for the most part, remain on broadcast.

If the network programming is gone from local broadcast stations, it will be interesting to see how the MSOs and satellite providers place a value on retransmission fees, or if some of the local stations will need to invoke must carry to stay in people's homes (assuming that cord cutting isn't entirely the wave of the future).

I don't think any network leaves broadcast unless Congress and the FCC don't do anything to protect OTA.

By the way, with Media General backing it, I wonder if KRON might end up getting a real network affiliation back.

Maybe it could be sold to Pappas Telecasting to become the Azteca America affiliate, although the Azteca affiliation is held by KEMO which is in North Bay.

Pappas will not last much longer with its only valuable assets being the Azteca outlet in Los Angeles, the ABC affiliate in Kearney-Hastings-North Platte, NE, the Fox affiliate for Kearney and Hastings, and the CBS affiliate in Yuma, AZ. The rest are CW and WeatherNation outlets.

 

[Morgan Wick]

And I envision a world where a la carte transforms local broadcast stations' value into the only linear platform guaranteed to be available to a wide audience, which means the most popular programming will, for the most part, remain on broadcast.

If the network programming is gone from local broadcast stations, it will be interesting to see how the MSOs and satellite providers place a value on retransmission fees, or if some of the local stations will need to invoke must carry to stay in people's homes (assuming that cord cutting isn't entirely the wave of the future).

I don't think any network leaves broadcast unless Congress and the FCC don't do anything to protect OTA.

By the way, with Media General backing it, I wonder if KRON might end up getting a real network affiliation back.

Maybe it could be sold to Pappas Telecasting to become the Azteca America affiliate, although the Azteca affiliation is held by KEMO which is in North Bay.

Pappas will not last much longer with its only valuable assets being the Azteca outlet in Los Angeles, the ABC affiliate in Kearney-Hastings-North Platte, NE, the Fox affiliate for Kearney and Hastings, and the CBS affiliate in Yuma, AZ. The rest are CW and WeatherNation outlets.

SINCLAIR!

 

[ding12]

And I envision a world where a la carte transforms local broadcast stations' value into the only linear platform guaranteed to be available to a wide audience, which means the most popular programming will, for the most part, remain on broadcast.

If the network programming is gone from local broadcast stations, it will be interesting to see how the MSOs and satellite providers place a value on retransmission fees, or if some of the local stations will need to invoke must carry to stay in people's homes (assuming that cord cutting isn't entirely the wave of the future).

I don't think any network leaves broadcast unless Congress and the FCC don't do anything to protect OTA.

By the way, with Media General backing it, I wonder if KRON might end up getting a real network affiliation back.

Maybe it could be sold to Pappas Telecasting to become the Azteca America affiliate, although the Azteca affiliation is held by KEMO which is in North Bay.

Pappas will not last much longer with its only valuable assets being the Azteca outlet in Los Angeles, the ABC affiliate in Kearney-Hastings-North Platte, NE, the Fox affiliate for Kearney and Hastings, and the CBS affiliate in Yuma, AZ. The rest are CW and WeatherNation outlets.

Is the LA station profitable? If LA isn't profitable, does it mean Azteca America would be toast in it's distribution if it lost LA?

Anyways, I was seeing that Media General doesn't run indys in major markets. And KRON has news which isn't cheap. It likely pays a lot for Dr.Phil as well. I mean if the CBS owned station, WWJ, in Detroit doesn't find profitability in running a news operation and CBS has a strong primetime lead-in, how does KRON make it work without any affiliation or niche, in such a high cost of living area?

Given that MG is a Southeast US company that likely isn't into high cost for low return, my guess is it'd drop the newscasts, Dr.Phil, etc. and replace it with infomercials, then spin off the station from it's portfolio or sell it. I don't see the build it up as an indy type approach being attempted.

 

[Morgan Wick]

And I envision a world where a la carte transforms local broadcast stations' value into the only linear platform guaranteed to be available to a wide audience, which means the most popular programming will, for the most part, remain on broadcast.

If the network programming is gone from local broadcast stations, it will be interesting to see how the MSOs and satellite providers place a value on retransmission fees, or if some of the local stations will need to invoke must carry to stay in people's homes (assuming that cord cutting isn't entirely the wave of the future).

I don't think any network leaves broadcast unless Congress and the FCC don't do anything to protect OTA.

By the way, with Media General backing it, I wonder if KRON might end up getting a real network affiliation back.

Maybe it could be sold to Pappas Telecasting to become the Azteca America affiliate, although the Azteca affiliation is held by KEMO which is in North Bay.

Pappas will not last much longer with its only valuable assets being the Azteca outlet in Los Angeles, the ABC affiliate in Kearney-Hastings-North Platte, NE, the Fox affiliate for Kearney and Hastings, and the CBS affiliate in Yuma, AZ. The rest are CW and WeatherNation outlets.

Is the LA station profitable? If LA isn't profitable, does it mean Azteca America would be toast in it's distribution if it lost LA?

LA is the largest Hispanic market at 14% of the Hispanic population, but that's probably less than half of Azteca's reach.

Anyways, I was seeing that Media General doesn't run indys in major markets. And KRON has news which isn't cheap. It likely pays a lot for Dr.Phil as well. I mean if the CBS owned station, WWJ, in Detroit doesn't find profitability in running a news operation and CBS has a strong primetime lead-in, how does KRON make it work without any affiliation or niche, in such a high cost of living area?

Given that MG is a Southeast US company that likely isn't into high cost for low return, my guess is it'd drop the newscasts, Dr.Phil, etc. and replace it with infomercials, then spin off the station from it's portfolio or sell it. I don't see the build it up as an indy type approach being attempted.

I really hope MG doesn't gut the station, but I can easily see them dropping Dr. Phil. If the CW loses the C part of its name I would go after the affiliation there hard, even if it doesn't have a chance to become a true fifth network. It is true that KRON doesn't fit their portfolio very well in general.