It’s hardly Breaking News. In 2021, Nexstar Media Group was the top television broadcasting company by total revenue, BIA Advisory Services finds. But, there’s a perhaps premature presage that’s been computed by the firm that puts a new entity at No. 2.
With the FCC scrutinizing the still pending deal and groups vocalizing their opposition to the transaction, is it too soon for Soo Kim to be heading the “second-largest group” in broadcast TV?
With nearly $4 billion in total revenue — comprised of nearly $1.9 billion in advertising revenue and $2.1 billion in estimated retransmission revenue, computed at the station level — Nexstar is No. 1 when it comes to dollars.
The revenue total for Nexstar reflects a rise from $3.6 billion in 2020, when some $2.1 billion in advertising and $1.5 billion in retrans revenues were seen by the owner of such stations as KTLA-5 in Los Angeles and KDAF-5 in Dallas; the NewsNation cable TV network; and digital multicast networks including Antenna TV.
The biggest takeaway is that Standard General, thanks to its pending acquisition of TEGNA, is now the second-largest broadcast station owner by ad dollars.
BIA Senior Research Analyst Suzanne Ackley was quick to defend her decision to put Standard General, led by Kim with a broadcasting arm set to see Deb McDermott succeed Dave Lougee as TEGNA CEO, in the second spot.
“Before you cry foul and tell me that the Standard General/TEGNA deal was announced in 2022, and the deal hasn’t even closed yet, it wouldn’t make any difference in the rankings,” Ackley says.
Looking at the list without the Standard General/TEGNA acquisition, BIA’s new head of forecasting, Nicole Ovadia, remarked, “TEGNA would have surpassed Gray, moving from third to second this year on our list even without the sale to Standard General.”
As BIA sees it, Standard General/TEGNA, when combined, had $2.7 billion in revenue in 2021 ($1.3 billion in advertising and $1.38 billion in retransmission). The only TV station included in those totals that Standard General isn’t acquiring from TEGNA is FOX affiliate WFXT-25 in Boston; it plans to acquire the station from Cox Media Group.
Despite several acquisitions that closed in 2021, Gray Television dropped to the third spot with total revenues of $2.6 billion ($1.5 billion advertising/$1.1 billion retrans revenues), down from $3.3 billion ($2.0 billion advertising/$1.3 billion retrans revenues) in 2020.
Standard General/TEGNA and Gray swapping places in the top 3 is the only change in order in the Top 10 between 2020 and 2021.
As Nexstar maintains duopoly partnerships (Joint Services Agreements and/or Shared Services Agreements) with Mission Broadcasting-owned TV stations, BIA combined Nexstar and Mission’s revenues for its rankings. The same holds true for Sinclair Broadcast Group, which has similar agreements with TV stations owned by Stephen Mumblow and Cunningham Broadcasting, BIA explains.
Without a boost from Mumblow and Cunningham, which on their own would each have ranked in the top 25 owners, Sinclair would have been in sixth place and not fourth, BIA adds.
A LIST OF THE TOP 30 TV STATION GROUPS IN 2021 ACCORDING TO BIA WAS ONLY PROVIDED TO ONE TRADE PUBLICATION. WE HAVE ASKED BIA TO AMEND THIS POLICY MOVING FORWARD.
