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Nexstar/Cox Cable Fight Over

Cox Communications, Nexstar Broadcasting and Mission Broadcasting Reach Retransmission Consent Agreement

ATLANTA--(BUSINESS WIRE)--Oct. 20, 2005--Cox Communications, Inc., Nexstar Broadcasting, Inc. (NASDAQ: NXST) and Mission Broadcasting, Inc. today announced that the companies have signed a retransmission consent agreement for analog and digital carriage rights. The deal includes 12 Nexstar stations and 9 Mission stations serving the following Designated Market Areas: Abilene-Sweetwater, San Angelo, Lubbock, Amarillo, Odessa-Midland and Beaumont-Port Arthur, Texas; Shreveport, La.; Fort Smith, Little Rock and Monroe-El Dorado, Ark.; Springfield and Joplin, Mo. and Pittsburg, Kan.

The agreement means that Cox customers in San Angelo, Texas can again enjoy KLST/CBS on Cox Cable. KTAL/NBC returns to the Cox lineup in Bossier City and Minden, La., as well as Magnolia, Ark. and Mt. Pleasant, Texas. KRBC/NBC (a Mission Broadcasting station) is again available to Cox customers in Abilene, Sweetwater and Snyder, Texas. Without permission from Nexstar and Mission to carry these broadcast signals, Cox was required to remove these channels from the lineups in the impacted markets last January.

"We are pleased to welcome these Nexstar and Mission stations back to Cox Cable," said Pat Esser, chief operating officer. "We regret the inconvenience to our customers while we negotiated these deals, which will help keep cable prices reasonable, fair and competitive. We also thank our loyal customers who stuck with us through this challenging time."

Nexstar Broadcasting Group Chairman and Chief Executive Officer Perry A. Sook commented, "As has been previously reported, Nexstar refused to grant retransmission consent without receiving adequate compensation. Although the confidentiality provisions limit Nexstar and Cox from discussing publicly the financial aspects of this agreement, we are pleased to have reached an economic agreement that is acceptable to both parties. This agreement encompasses all of the Nexstar and Mission stations carried on Cox cable systems. Going forward, we anticipate a mutually beneficial relationship between the companies."

"We highly value the local and national programming that the Nexstar and Mission stations deliver to our customers," said Debbie Cullen, director of programming. "We are pleased to have reached this agreement with Mission and Nexstar, which meets all of our original objectives. The deal demonstrates that broadcasters and cable operators can reach terms that are mutually agreeable and in the best interest of consumers. Our innovative agreement provides for incremental value to all parties, while giving Cox the long-term rights to carry the primary analog and digital signals of the Nexstar and Mission stations."

ABOUT COX COMMUNICATIONS (www.cox.com)

Cox Communications Inc., a Fortune 500 company, is a multi-service broadband communications company with approximately 6.7 million total customers, including approximately 6.3 million basic cable subscribers. The nation's third-largest cable television provider, Cox offers analog cable television under the Cox Cable brand as well as digital video service under the Cox Digital Cable brand, featuring advanced services including digital video recording, high-definition television and video-on-demand. Cox provides an array of other communications services including local and long-distance telephone under the Cox Digital Telephone brand, high-speed Internet service under the Cox High Speed Internet brand, and home networking. Commercial voice and data services are offered via Cox Business Services. Local cable advertising, promotional opportunities and production services are sold under the Cox Media brand. Cox is an investor in programming services including Discovery Communications Inc. Cox Communications is a wholly-owned subsidiary of Cox Enterprises Inc.

ABOUT NEXSTAR BROADCASTING

Nexstar Broadcasting Group, Inc. currently owns, operates, programs or provides sales and other services to 47 television stations in 27 markets in the states of Illinois, Indiana, Maryland, Missouri, Montana, Texas, Pennsylvania, Louisiana, Arkansas, Alabama and New York. Nexstar's television station group includes affiliates of NBC, CBS, ABC, FOX and UPN, and reaches approximately 7.4% of all U.S. television households.

From TelevisionWeek:

October 20, 2005
Carriage Pact Ends Cox Stalemate With Station Groups
By Jay Sherman
Cox Communications on Thursday reached an agreement with Nexstar Broadcasting and Mission Broadcasting in which it will pay the two station groups a retransmission fee to carry the broadcasters' signals on Cox's cable systems.

The agreement ends a nearly year-long stalemate that resulted in Cox removing the station groups' signals from cable systems in San Angelo and Mount Pleasant, Texas; Bossier City and Minden, La.; and Magnolia, Ark.

Nexstar is locked in a similar fight with Cable One.

Financial terms of the pact were not disclosed, though Nexstar Chairman and CEO Perry Sook said Nexstar and Cox "reached an economic agreement that is acceptable to both parties." Last December, when the battle between Cox and Nexstar first broke out, Nexstar was demanding to be paid between 25 cents and 30 cents per subscriber per month.

The carriage agreement with Cox covers the analog and digital signals of 12 Nexstar stations and nine Mission stations in 13 markets in Texas, Arkansas, Missouri and Kansas.
 
Good News! Uh, nothings changing.

You know what's funny about this? I didn't even know there was a battle between Nextar/Mission, and Cox cable. Than, I'm watching KAMC TV here in Lubbock, and on the news, the Anchor lady says "Well, we have good news, Cox cable and Mission have come to an agreement.... You'll be able to continue watching K-Mac 28 on Cox Cabe."

If you ask me, this was a non-storey, and an closd-door issue that we didn't really need to know. Instead, Karla Leslie was forced to waste 3 minutes of air time and 5 minutes of producion time (there was full-screen with the reader), just to tell us that nothing is changing.

Makes me kinda wished they hadn't reached an agreement, then I would have been able to watch WFAA and KTVT instead. LOL

> Cox Communications, Nexstar Broadcasting and Mission
> Broadcasting Reach Retransmission Consent Agreement
>
> ATLANTA--(BUSINESS WIRE)--Oct. 20, 2005--Cox Communications,
> Inc., Nexstar Broadcasting, Inc. (NASDAQ: NXST) and Mission
> Broadcasting, Inc. today announced that the companies have
> signed a retransmission consent agreement for analog and
> digital carriage rights. The deal includes 12 Nexstar
> stations and 9 Mission stations serving the following
> Designated Market Areas: Abilene-Sweetwater, San Angelo,
> Lubbock, Amarillo, Odessa-Midland and Beaumont-Port Arthur,
> Texas; Shreveport, La.; Fort Smith, Little Rock and
> Monroe-El Dorado, Ark.; Springfield and Joplin, Mo. and
> Pittsburg, Kan.
>
> The agreement means that Cox customers in San Angelo, Texas
> can again enjoy KLST/CBS on Cox Cable. KTAL/NBC returns to
> the Cox lineup in Bossier City and Minden, La., as well as
> Magnolia, Ark. and Mt. Pleasant, Texas. KRBC/NBC (a Mission
> Broadcasting station) is again available to Cox customers in
> Abilene, Sweetwater and Snyder, Texas. Without permission
> from Nexstar and Mission to carry these broadcast signals,
> Cox was required to remove these channels from the lineups
> in the impacted markets last January.
>
> "We are pleased to welcome these Nexstar and Mission
> stations back to Cox Cable," said Pat Esser, chief operating
> officer. "We regret the inconvenience to our customers while
> we negotiated these deals, which will help keep cable prices
> reasonable, fair and competitive. We also thank our loyal
> customers who stuck with us through this challenging time."
>
> Nexstar Broadcasting Group Chairman and Chief Executive
> Officer Perry A. Sook commented, "As has been previously
> reported, Nexstar refused to grant retransmission consent
> without receiving adequate compensation. Although the
> confidentiality provisions limit Nexstar and Cox from
> discussing publicly the financial aspects of this agreement,
> we are pleased to have reached an economic agreement that is
> acceptable to both parties. This agreement encompasses all
> of the Nexstar and Mission stations carried on Cox cable
> systems. Going forward, we anticipate a mutually beneficial
> relationship between the companies."
>
> "We highly value the local and national programming that the
> Nexstar and Mission stations deliver to our customers," said
> Debbie Cullen, director of programming. "We are pleased to
> have reached this agreement with Mission and Nexstar, which
> meets all of our original objectives. The deal demonstrates
> that broadcasters and cable operators can reach terms that
> are mutually agreeable and in the best interest of
> consumers. Our innovative agreement provides for incremental
> value to all parties, while giving Cox the long-term rights
> to carry the primary analog and digital signals of the
> Nexstar and Mission stations."
>
> ABOUT COX COMMUNICATIONS (www.cox.com)
>
> Cox Communications Inc., a Fortune 500 company, is a
> multi-service broadband communications company with
> approximately 6.7 million total customers, including
> approximately 6.3 million basic cable subscribers. The
> nation's third-largest cable television provider, Cox offers
> analog cable television under the Cox Cable brand as well as
> digital video service under the Cox Digital Cable brand,
> featuring advanced services including digital video
> recording, high-definition television and video-on-demand.
> Cox provides an array of other communications services
> including local and long-distance telephone under the Cox
> Digital Telephone brand, high-speed Internet service under
> the Cox High Speed Internet brand, and home networking.
> Commercial voice and data services are offered via Cox
> Business Services. Local cable advertising, promotional
> opportunities and production services are sold under the Cox
> Media brand. Cox is an investor in programming services
> including Discovery Communications Inc. Cox Communications
> is a wholly-owned subsidiary of Cox Enterprises Inc.
>
> ABOUT NEXSTAR BROADCASTING
>
> Nexstar Broadcasting Group, Inc. currently owns, operates,
> programs or provides sales and other services to 47
> television stations in 27 markets in the states of Illinois,
> Indiana, Maryland, Missouri, Montana, Texas, Pennsylvania,
> Louisiana, Arkansas, Alabama and New York. Nexstar's
> television station group includes affiliates of NBC, CBS,
> ABC, FOX and UPN, and reaches approximately 7.4% of all U.S.
> television households.
>
> From TelevisionWeek:
>
> October 20, 2005
> Carriage Pact Ends Cox Stalemate With Station Groups
> By Jay Sherman
> Cox Communications on Thursday reached an agreement with
> Nexstar Broadcasting and Mission Broadcasting in which it
> will pay the two station groups a retransmission fee to
> carry the broadcasters' signals on Cox's cable systems.
>
> The agreement ends a nearly year-long stalemate that
> resulted in Cox removing the station groups' signals from
> cable systems in San Angelo and Mount Pleasant, Texas;
> Bossier City and Minden, La.; and Magnolia, Ark.
>
> Nexstar is locked in a similar fight with Cable One.
>
> Financial terms of the pact were not disclosed, though
> Nexstar Chairman and CEO Perry Sook said Nexstar and Cox
> "reached an economic agreement that is acceptable to both
> parties." Last December, when the battle between Cox and
> Nexstar first broke out, Nexstar was demanding to be paid
> between 25 cents and 30 cents per subscriber per month.
>
> The carriage agreement with Cox covers the analog and
> digital signals of 12 Nexstar stations and nine Mission
> stations in 13 markets in Texas, Arkansas, Missouri and
> Kansas.
>
 
Re: Good News! Uh, nothings changing.

Were people in the affected markets watching network affiliates from other markets?
 
Re: Good News! Uh, nothings changing.

> Were people in the affected markets watching network
> affiliates from other markets?
>
I believe in *most* cases 'syndicated exclusivity' came into play, if that's the correct phrase. In other words, Nexstar prevented the cable companies from carrying network affiliates from outlying markets, since they have the 'rights' to exclusively air network programming in those areas. (That's not always the case, as there are plenty of examples of cable systems carrying multiple network affiliates-usually in outlying areas boardering other markets).

That was the case recently in an area of Oklahoma where Cable One was carrying the NBC affiliate out of Tulsa-and got in trouble with the FCC. The reason: the area is served by KSNF, the NBC affiliate out of Joplin, MO. It happens to be one of the Nexstar stations embroiled in the stalemate. So if they can't carry KSNF, they can't carry anyone's NBC signal.

In other words-get out those rabbit ears (or switch to Dish or DirectTV, as most Nexstar stations have been advertising).<P ID="edit"><FONT class="small">Edited by Stitch on 10/22/05 05:21 PM.</FONT></P>
 
Re: Good News! Uh, nothings changing.

> > Were people in the affected markets watching network
> > affiliates from other markets?
> >
> I believe in *most* cases 'syndicated exclusivity' came into
> play, if that's the correct phrase. In other words, Nexstar
> prevented the cable companies from carrying network
> affiliates from outlying markets, since they have the
> 'rights' to exclusively air network programming in those
> areas. (That's not always the case, as there are plenty of
> examples of cable systems carrying multiple network
> affiliates-usually in outlying areas boardering other
> markets).
>
> That was the case recently in an area of Oklahoma where
> Cable One was carrying the NBC affiliate out of Tulsa-and
> got in trouble with the FCC. The reason: the area is served
> by KSNF, the NBC affiliate out of Joplin, MO. It happens to
> be one of the Nexstar stations embroiled in the stalemate.
> So if they can't carry KSNF, they can't carry anyone's NBC
> signal.
>
> In other words-get out those rabbit ears (or switch to Dish
> or DirectTV, as most Nexstar stations have been
> advertising).
>
The Nextstar stations are a gaping hole for all 4 networks, and is one of the reasons people watch cable, or use Tivo. As longs as companies like Nexstar own tv affiliates, the networks will continue to lose viewers in local markets.
 
Re: Good News! Uh, nothings changing.

I've wondered why NBC was the #4 network last season.....

The truth finally comes out.

13 of Nexstar's O&O and/or controlled stations carry NBC.

All markets in Arkansas save for Memphis and Springfield, MO have NBC programming slopped up by these folks. And Springfield has CBS and FOX afflis by these guys.

But we do have the "Razorback Nation" segment (shared by KNWA Fayetteville)!
 
Re: Good News! Uh, nothings changing.

> I've wondered why NBC was the #4 network last season.....
>
> The truth finally comes out.
>
> 13 of Nexstar's O&O and/or controlled stations carry NBC.
>
> All markets in Arkansas save for Memphis and Springfield, MO
> have NBC programming slopped up by these folks. And
> Springfield has CBS and FOX afflis by these guys.
>
> But we do have the "Razorback Nation" segment (shared by
> KNWA Fayetteville)!
>

I just wonder why Nexstar would require cable companies in the market where they own a station to pay a retransmission fee, where there are MUST CARRY rules. I think the FCC must review the Must Carry/Retransmission rules.

Are any of the Nexstar stations Low Powered network affilliates, or are all of these stations full powered. I understand they can demand a retransmission fee to cable companies outside their target DMAs, but asking for a retransmission contract where they're better off getting in any cable system using the Must Carry Rule?

Can we say dollars and sense?
 
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