Media Consolidation overview

[Y2kTheNewOldies]

https://www.axios.com/the-local-tv-...ere-7c65f3fb-eaab-43c4-9a00-81303867dbee.html

Here is the overview.

. The ownership rule will impact the entire local TV landscape, which is currently dominated by roughly a dozen companies.

The latest: Sinclair and Tribune are back to the drawing board.

Sinclair says it will likely pursue other deals to acquire more local stations, but analysts and industry experts say that its poor behavior could make it difficult to pursue other acquisitions.
Tribune will likely sell its stations to another local broadcaster, but its CEO said in an email to employees obtained by Axios that it is focusing on remaining "one of the preeminent broadcasting companies in America."
21st Century Fox was supposed to buy seven Tribune stations from Sinclair once the deal went through. They are likely to continue to look for other acquisitions.
Gray Television is buying Raycom in a deal valued at $3.6 billion. It likely wouldn't face regulatory hurdles as it is currently below the broadcast ownership cap of 39%.
Cox Enterprises says it plans to sell 14 TV stations across the country through mergers or a partnership with a large ownership group.
Scripps purchased Katz Broadcast networks, four targeted TV stations, in 2017 and recently sold its radio stations to focus on growing its TV business.
Nexstar, Meredith and Tegna would also be in the position to buy up other stations to expand their footprint.
Univision's business is in a complicated position following a failed IPO. Its new CEO says he wants to focus the Spanish broadcaster's efforts on investing in Univision’s local stations, among other priorities.
The rush to consolidate isn't limited to local TV.

Newspapers have been consolidating into big national holding groups for years now, creating what experts call "news deserts" in local markets. Some analysts Axios spoke to believe the FCC rules addressing newspaper cross-ownership have become a formality, because the industry, at this point, is shrinking so rapidly.
Radio does not have a broadcast cap, but a consumer trend towards on-demand streaming and internet radio is forcing many major radio broadcasters to either file for debt or consolidate.

 

[TheBigA]

I don't agree with the final sentence. Radio DOES have market caps. Streaming and internet radio had absolutely nothing to do with either iHeart or Cumulus bankruptcies. Those were caused by previous acquisitions made at top-of-market prices.

The real issue I see is that the high cost of music streaming is preventing other players from getting into the business. I find it ironic that the major music labels, such as Warner Brothers, are selling their stakes in Spotify. That ownership stake was supposed to help Spotify compete with Pandora. The record labels have decided they'd rather get the full royalty than have a stake in the streaming business. That says a lot to me about the profitability of internet streaming.

On the other hand, as I've written elsewhere, the FCC's continuing to over-license the FM spectrum with LPFMs and AM translators has devalued existing FM licenses. That's why I feel the radio industry is justified in requesting a loosening of current ownership limits. So if approved, there will be additional consolidation in radio.