13 Stations Potentially Affected as Cox Has
Yet to Reach Distribution Agreement with Nexstar
Broadcasting
Nexstar Broadcasting Group, Inc. (Nasdaq: NXST) (“Nexstar”)
announced today that Cox Communications (“Cox”) subscribers in nine
markets are at risk of losing network and local community
programming at 11:59 p.m. local time on January 29, 2016 as Cox has
yet to reach a new distribution agreement allowing the cable
television provider the right to continue to air Nexstar’s highly
rated programming. For over five months, Nexstar has been
negotiating in good faith to establish a mutually agreeable
contract with Cox.
Nexstar has established a long-term record of completing
hundreds of agreements with cable and satellite providers for the
carriage of its programming and is proud it has had no material
service interruptions related to distribution agreements since
2005. Nexstar will continue negotiating with Cox to try and reach a
fair agreement to allow viewers to continue receiving its
programming on an uninterrupted basis.
In the affected markets, Nexstar broadcasts leading network
content from ABC, CBS, FOX, NBC, CW and MyNetworkTV as well as
local news and other programming produced specifically for local
communities. Viewers affected by the potential black-out have
several alternatives to continue to watch their favorite shows
including other local cable providers, DISH, DirectTV,
over-the-air, and services including Verizon’s FIOS and AT&T
U-verse.
Across the U.S., broadcast stations and station groups generate
approximately 35% of household viewing, yet local broadcasters in
aggregate received on average about 12% of the total distribution
revenue from cable, satellite and telecom providers such as Cox.
Conversely, Cox (through charges to its subscribers) pays The Walt
Disney Company nearly $8.00 per household per month for carriage of
ESPN and Turner Broadcasting more than $1.65 per household per
month for TNT. With Nexstar’s commitment to local viewers’
information and entertainment needs, local businesses and their
marketing effectiveness, local stations need to be fairly
compensated for the value of their programming.
Nexstar is committed to consistently elevating the level of
service provided to local communities in the markets it serves
across the United States by making meaningful capital investments
to expand local news, lifestyle, sports, weather and other
programming and enhancing station infrastructure, production
resources and technologies. Nexstar regrets that Cox Communications
is willing to hold its paying subscribers hostage because it won’t
agree to fair and reasonable terms for viewers’ favorite network,
local news and community-focused programming, as well as other
critical information and emergency service updates we provide that
is relevant to local community viewers.
Nexstar remains hopeful that a resolution can be reached before
the January 29 deadline, but should Cox fail to come to terms with
Nexstar, Nexstar intends to actively educate consumers in affected
markets on how they can continue to receive their favorite network
programming, in-depth local news, other content and programming
relevant to their communities, and critical updates in times of
emergencies.
About Nexstar Broadcasting Group, Inc.Nexstar
Broadcasting Group is a leading diversified media company that
leverages localism to bring new services and value to consumers and
advertisers through its traditional media, digital and mobile media
platforms. Nexstar owns, operates, programs or provides sales and
other services to 106 television stations and related digital
multicast signals reaching 57 markets or approximately 17.3% of all
U.S. television households. Nexstar’s portfolio includes affiliates
of NBC, CBS, ABC, FOX, MyNetworkTV, The CW, Telemundo, Bounce TV,
Me-TV, LATV, Estrella, This TV, Weather Nation Utah, Movies! and
News/Weather. Nexstar’s community portal websites offer additional
hyper-local content and verticals for consumers and advertisers,
allowing audiences to choose where, when and how they access
content while creating new revenue opportunities.
Pro-forma for the completion of all announced transactions
Nexstar will own, operate, program or provide sales and other
services to 114 television stations and related digital multicast
signals reaching 59 markets or approximately 18% of all U.S.
television households.
Forward-Looking StatementsThis news release includes
forward-looking statements. We have based these forward-looking
statements on our current expectations and projections about future
events. Forward-looking statements include information preceded by,
followed by, or that includes the words "guidance," "believes,"
"expects," "anticipates," "could," or similar expressions. For
these statements, the Company claims the protection of the safe
harbor for forward-looking statements contained in the Private
Securities Litigation Reform Act of 1995.
The forward-looking statements contained in this news release,
concerning, among other things, changes in net revenue, cash flow
and operating expenses, involve risks and uncertainties, and are
subject to change based on various important factors, including the
impact of changes in national and regional economies, our ability
to service and refinance our outstanding debt, successful
integration of acquired television stations (including achievement
of synergies and cost reductions), pricing fluctuations in local
and national advertising, future regulatory actions and conditions
in the television stations' operating areas, competition from
others in the broadcast television markets served by the Company,
volatility in programming costs, the effects of governmental
regulation of broadcasting, industry consolidation, technological
developments and major world news events. Unless required by law,
we undertake no obligation to update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise. In light of these risks, uncertainties and
assumptions, the forward-looking events discussed in this news
release might not occur. You should not place undue reliance on
these forward-looking statements, which speak only as of the date
of this release. For more details on factors that could affect
these expectations, please see our filings with the Securities and
Exchange Commission.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160125005580/en/
Nexstar Broadcasting Group, Inc.Thomas E. Carter,
972-373-8800Chief Financial OfficerorJCIRJoseph Jaffoni/Jennifer
Neuman, 212-835-8500nxst@jcir.com
Nexstar Media (NASDAQ:NXST)
Historical Stock Chart
From Apr 2024 to May 2024
Nexstar Media (NASDAQ:NXST)
Historical Stock Chart
From May 2023 to May 2024