One possibility might be Regional Syndication.
Here, a TV station in a major market produces a show which is not only seen there, but seen in neighboring markets as well.
In many cases, the show can still be "local" although it may air in up to a half-dozen cities.
As an example, WBZ-4 in Boston could produce a regional talk/variety show that could also be broadcast in Providence, Hartford, Springfield, Manchester, Portland, Burlington, and Bangor. As a CBS O&O, WBZ might get the CBS affiliates in those cities (except Manchester, where CBS has no affiliate) to pick-up the aforementioned show.
Or WRC-4 in Washington could produce a regional program that could be picked-up by stations in Baltimore, Salisbury, Hagerstown and Richmond.
Or KABC-7 Los Angeles could produce a show that could be distributed regionally to San Diego, Palm Springs, and Santa Barbara.
The originating station could charge more for commercial spots, given that the show is seen in several nearby markets, and that should cover the costs of producing the show.