IRVING, Texas—As retransmission fees from pay TV operators are becoming an increasingly fraught issue and operators struggle with massive sub losses, Nexstar is ending live streams of its local newscasts from many of its stations in a bid to make local broadcast content more valuable.
Nexstar's WTNH, for example, posted on its website that “[i]n order to fulfill our obligations to our cable, satellite, and telco partners, on January 12, WTNH will begin making its newscasts and locally produced lifestyle programming available on the WTNH website two hours after their live broadcast over-the-air.”
The strategy shift was previously reported by FTVLive.
B+C is reporting however that some Nextstar stations continue to offer live newscasts on streaming media. WGN-TV, Chicago, KTLA-TV, Los Angeles, and KRON-TV, San Francisco, will continue to stream local news programming live on their station apps WGN Plus, KTLA Plus and KRON Plus, B+C reported.
Nexstar reported that other stations will continue to make highlights of newscasts available through video clips and other coverage after the live broadcast and that breaking news and important weather updates will continue to be offered on websites, mobile apps and social media platforms.
The shift in strategy comes at a time when pay TV operators are seeing mounting sub losses and retransmission consent negotiations with operators have become increasingly fraught. Limiting the live newscasts would allow Nexstar to argue that it deserves higher retransmission fees.
The pullback from local streaming comes, however, as the industry has ramping up live streaming of local news and viewers have shifted more and more of their viewing to those apps. It raised questions about whether the decision will boost short term profits at the expense of longer term business opportunities.
BIA has reported that local OTT revenue is the fastest growing ad business, topping $2 billion in 2022 and should top $2.4 billion by 2024. But those revenues remain tiny compared local TV advertising and retransmission fees.
