Nexstar CEO Warns Big Tech Poses Existential Threat to Local TV
The CEO of Nexstar Media Group has warned that large technology platforms pose a significant threat to the future of local television, drawing parallels to the decline of local newspapers. He stated that outdated regulations hinder local broadcasters' ability to effectively compete with Big Tech's vast economic power and extensive reach. The CEO emphasized that strategic moves, such as Nexstar's pursuit of acquiring TEGNA, are crucial for local journalism to grow, attract advertising, and continue providing trusted local news in an increasingly competitive digital landscape.
The CEO of Nexstar Media Group has voiced concerns that major technology platforms are threatening the viability of local television broadcasters, echoing the challenges that led to the decline of local newspapers. He argues that existing regulations have constrained local TV's ability to grow, compete, and invest in its future.
Big Tech companies, including Google/YouTube, TikTok, Amazon, Meta's Facebook and Instagram, and Netflix, have amassed significant economic power and are reshaping how Americans consume news and information. YouTube alone accounts for one-eighth of all television viewing in the United States, with one in four young adults reportedly getting news from TikTok. Last year, YouTube's video advertising revenue surpassed that of all broadcast television combined, according to S&P Global/Kagan. A Wall Street analyst predicts that by 2026, five digital entities—Facebook, Amazon, Microsoft, Google, and TikTok—will control 65% of the advertising market, valued at $260 billion.
These platforms' business models, which prioritize clicks over accuracy or accountability, do not serve the same critical purpose in civic discourse as fact-based journalism. This creates a real and urgent threat to local broadcasters and local news.
The situation is compared to the fate of local newspapers, which were once indispensable community institutions. With the rise of online news and advertising, their economic models unraveled, leading to thousands of closures and a loss of nearly 270,000 jobs at local newspapers in the last 20 years, as reported by the Medill Local News Initiative. Regulatory relief for newspapers often came too late.
Nexstar Media Group, founded in 1996 with a single station, has grown to serve over 130 communities across the country. The company currently employs more than 18,000 people, including nearly 9,000 journalists. Americans consistently rank local newscasts as their most trusted source of information, with Nexstar stations producing over 300,000 hours of local news and programming annually.
To sustain this mission, particularly in an era of misinformation, local broadcasters require scale. The CEO highlighted that Nexstar's pursuit of TEGNA was driven by this need, asserting that such transactions are vital for the future of local television and journalism. Without the ability to grow, local broadcasters would struggle to attract audiences and advertising, and to invest in essential local journalism. Even combined, Nexstar and TEGNA represent only 15% of the more than 1,700 full-power stations nationwide.
According to Fortune, the CEO of Nexstar Media Group expressed these views.
