Lower advertising revenue from its television and entertainment units, coupled with an impairment charge, led the company merging with Sinclair Broadcast Group to a slide in Q1 net revenue and a swing to a steep net loss.
Steamboat Willie is sailing full-steam ahead, as Mickey and Belle boosted both ABC and beleaguered sports network ESPN in bringing The Walt Disney Co. fiscal Q2 results that were far from beastly. Theme parks and Disney's studio operations were to thank for the strong results.
The transition to the next-gen broadcast TV standard, ATSC 3.0, has some broadcast TV companies excited about what lies ahead. But, while much of the discussion has focused on new advertising opportunities, there's a tech angle that has been barely talked about. Simply put, ATSC 3.0 can make a broadcast TV station as powerful as a wireless services company—with respect to data. Even so, the ACA and the NAB both want "light touch" regulation regarding the transition. In this RBR+TVBR INFOCUS report, we examine how ATSC 3.0 can bring two new dynamics to broadcasters—whenever it actually reaches critical mass.
An increasingly competitive commercial environment, with intense competition for audiences and advertising revenue from other media companies, has led to the end of broadcasting license fees and datacasting charges. Furthermore, there's been a repeal of the "two out of three" and 75% audience reach media ownership rules. G'day, readers: This is what's happening in Australia.
Nexstar Media Group released its first Q1 earnings report following its merger with Media General, and on a combined basis, Nexstar had a stellar first three months of 2017. A key catalyst for the growth? Retransmission fees, the new go-to for many broadcast TV companies.
A trio of law firms say they are commencing an investigation into the fairness of the sale of Tribune Media Co. to Sinclair Broadcast Group. Is this a case of "ambulance chasing," or does a dissent group of Tribune shareholders truly want to put a stop to the biggest TV industry deal in recent memory?
On a day when it released Q1 2017 results reflecting a loss of $132.3 million, streaming audio favorite Pandora revealed that it has received a $150 million strategic investment from KKR. However, there's chatter that Pandora won't ever take a penny from KKR, and that it will find a buyer before it engages in a deal relinquishing preferred stock in the company.
Upon closing its merger with Tribune Media in Q4 2017, Sinclair will enjoy a whopping $4.3 billion in combined revenue, while enjoying coverage of 72% of the U.S. That's nearly double the size of the broadcast TV industry's other key players, and Wells Fargo Securities senior analyst Marci Ryvicker gives her thumbs up. Meanwhile, media brokers who spoke with RBR+TVBR see this as the beginning of a transformative time for the TV business.
Following rumors late Sunday that a deal was imminent, Sinclair Broadcast Group and Tribune Media Co. have reached a deal that will see Sinclair acquire 100% of the issued and outstanding shares of Tribune for $43.50 per share, for an aggregate purchase price of approximately $3.9 billion. Sinclair will also assume approximately $2.7 billion in net debt.
The First 100 Days. Many media organizations have turned to the White House, and its accomplishments (or lack thereof) since the transition in power from President Obama to President Trump. On Friday, they had a new individual in D.C. to turn their attention to, as FCC Chairman Ajit Pai shared with a conservative think tank with heavy influence what he's done since succeeding Tom Wheeler as the Commission's leader.
With tough comps due to a loss of political dollars and a tightening advertising landscape, perhaps flat is good for a media company in the early months of 2017. For The E.W. Scripps Co., TV division revenue was statistically flat in Q1. Meanwhile, the company's radio stations experienced a 4.2% revenue dip during the quarter. What's truly hurting Scripps is its digital division, and there's one clear reason why.
A big advertiser that does the bulk of its business in the first quarter of every year has elected to bring its media buying and planning, social strategy, and creative all under the same umbrella. In doing so, Publicis Groupe has snagged a media assignment valued at $146 million, according to industry estimates. For the TV and radio industry C-Suite, now is the time to set appointments to win over business from this "taxing" client.
The first three months of 2017 have been kind to a company dedicated to super-serving Hispanic media consumers across the U.S. Entravision Communications, which not only owns radio stations but is also the largest Univision and UniMás affiliate partner in the nation, saw its net income rise 15% in Q1. The good performance, thanks wholly to its TV segment, came as the company's board of directors approved a cash dividend to shareholders.
An additional NFL game and the presence of Super Bowl 50 on CBS-TV one year ago made a big difference for CBS Corp. in Q1. So did a loss of political dollars, as the company swung to a net loss. Net revenue was down to $3.34 billion, from $3.59 billion. But, the coming merger of CBS Radio with Entercom had perhaps the biggest impact on CBS's Q1 earnings.
Publicly traded radio and TV companies have experienced a decline in share value as a result of MoffettNathanson LLC's Craig Moffett releasing an investor report on Wednesday highlighting a sharp decline in pay-TV subscriptions. The dips continued today for most companies. Saga Communications is flying high, and so is Tribune.