Nexstar Media Group Profile
Nexstar Media Group, Inc. operates as a leading diversified media company. The company owns television broadcasting, television network and digital media assets operating in the United States.
As of December 31, 2022, the company owned, operated, programmed or provided sales and other services to 199 full power television stations and one AM radio station, including television stations owned by VIEs, in 116 markets in 39 states and the District of Columbia. The stations are affiliates of CBS, FOX, NBC, ABC, The CW, and MyNetworkTV (MNTV) and other broadcast television networks. The company’s television broadcasts reach approximately 39% of all U.S. television households after applying the Federal Communications Commission’s (FCC) ultra-high-frequency (UHF) discount and approximately 68% of all U.S. television households excluding the FCC UHF discount. The company also owns a 75.0% interest in The CW Network, LLC (The CW), one of the major broadcast networks in the U.S., NewsNation, a national cable news network which is distributed to approximately 70 million homes according to The Nielsen Company (US), LLC (Nielsen); two digital multicast networks, Antenna TV and Rewind TV, and a 31.3% ownership stake in Television Food Network, G.P. (TV Food Network). The company’s digital assets include more than 140 local websites, 280 mobile applications, 22 connected television applications, and six free-ad supported television (FAST) channels representing content from its local television stations, The CW, NewsNation, The Hill, and BestReviews, as well as a suite of advertising solutions for brands and advertisers. Together, the company’s other digital properties attracted almost 100 million unique visitors in December 2022 according to Comscore.
The stations the company owns and operates or provides services to provide free programming to consumers in its markets. This programming includes programs produced by third party networks with which the stations are affiliated, programs distributed by the company’s owned and majority-owned broadcast networks to the affiliated stations, content that the stations produce, and syndicated programs that the stations acquire. The CW delivers 14-hours per week of primetime programming and three hours on weekends to its larger market affiliates, 24 hours of programming, seven days per week to its smaller market affiliates via CWPlus and, beginning in 2023, is expanding its programming on the weekends with LIV Golf. The CW also offers its network content, as well as a library of other third-party content available for free to users via The CW App. The company’s NewsNation cable network primarily delivers national news programming supplemented by quality television series and movies. The company’s digital businesses include video and display advertising platforms that are delivered locally or nationally through our own and various third-party websites, mobile and over-the-top (OTT) applications, other digital media solutions to media publishers and advertisers and a consumer product reviews platform.
The company’s primary sources of revenue include contractual distribution revenue from retransmission consent and carriage agreements with distributors (MVPDs), such as cable and satellite providers, and online video distributors (OVDs), companies that provide video content through internet streaming either directly or via our network affiliation partners, as well as affiliation fees from local affiliates of The CW; the sale of commercial air time by the stations to local advertisers; the sale of commercial airtime by the stations and by the company’s cable and broadcast networks to national advertisers; the sale of advertising on the stations’ websites, on its other owned or third party websites, and through mobile and OTT applications and other digital advertising solutions.
The company also derives significant cash flows from its largest equity investment, a 31.3% interest in TV Food Network. TV Food Network operates two 24-hour television networks, Food Network and Cooking Channel, offering quality television, video, internet and mobile entertainment and information focusing on food and entertaining.
Acquisitions
On September 30, 2022, the company acquired a 75.0% ownership interest in The CW from affiliates of Paramount Global and Warner Bros. Discovery, Inc. (collectively the Sellers).
Strategy
The key elements of the company’s strategy are to leverage its scale; continue to grow distribution and core and political advertising revenues; expand digital offerings; operate and expand national broadcast and cable networks; develop new revenue streams; and acquire and invest in new and complementary businesses.
Relationship with VIEs
Through various local service agreements, as of December 31, 2022, the company provided sales, programming and other services to 35 full power television stations owned by consolidated VIEs and one full power television station owned by an unconsolidated VIE. As of December 31, 2022, all of the VIEs and their stations are 100% owned by independent third parties. In compliance with FCC regulations for all the parties, the VIEs maintain complete responsibility for and control over programming, finances, personnel and operations of their stations.
Seasonality
Advertising revenue is positively affected by national and regional political election campaigns and certain events, such as the Olympic Games or the Super Bowl. Advertising revenue is generally highest in the second and fourth quarters of each year (year ended December 31, 2022), due in part to increases in consumer advertising in the spring and retail advertising in the period leading up to, and including, the holiday season. In addition, advertising revenue is generally higher during even-numbered years, when congressional and/or presidential elections occur and from advertising aired during the Olympic Games.
Competition
Audience: Specifically, The CW, the company’s broadcast television network, competes with other broadcast networks and other distribution technologies for viewers and NewsNation, its growing national cable news network, competes with other established national news networks, such as CNN, FOX News and MSNBC for viewers.
Advertising: The company’s stations compete for advertising revenue with other television stations in their respective markets and other advertising media, such as online media (e.g., Alphabet Inc., Meta, etc.), OVDs, MVPDs, radio stations, newspapers, outdoor advertising, and direct mail, among others. NewsNation also competes for advertising revenue with other advertising media and with other established national networks, such as CNN, FOX News and MSNBC.
History
Nexstar Media Group, Inc., a Delaware corporation, was founded in 1996. The company was incorporated in 2001.
