Nexstar Media: Broadcasting's Biggest Bet - [Business Breakdowns, EP.221]

This is Zack Fuss. Today, we are breaking down Nexstar Media Group. Nexstar controls more local television stations than any other company in the US. This industry has experienced substantial consolidation, which has reshaped itself over the past decade and ultimately culminated in the emergence of businesses like Nexstar as the preeminent station group outside of the Big Four.  My guest today is Simeon McMillan, a founder of media-focused research firm Accured Interest. He's held roles as a banker and executive within prominent television, cable, and radio businesses, including Univision Networks and Media Co. In this discussion, we will examine the foundational structure of the broadcast television industry, tracing its evolution from the pre-Internet hub-and-spoke model of the major networks, NBC, CBS, ABC, and Fox. Simeon breaks down the revenue streams that sustain this ecosystem and how subscriber fees from multi-channel video programming distributors like YouTube TV and Comcast cable are distributed among the networks and their affiliates. We also address the impact of cord-cutting on subscribers and how those viewership metrics impact pricing power within the television ecosystem. Please enjoy this Breakdown of Nexstar Media. For the full show notes, transcript, and links to the best content to learn more, check out the episode page⁠⁠⁠ ⁠here⁠⁠⁠⁠. —- Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit⁠⁠⁠⁠ joincolossus.com/episodes⁠⁠⁠⁠. Editing and post-production work for this episode was provided by The Podcast Consultant (⁠⁠⁠⁠https://thepodcastconsultant.com⁠⁠⁠⁠). Show Notes (00:00:00) Welcome to Business Breakdowns (00:00:41) Simeon McMillan's Background in Media (00:02:48) Understanding the Broadcast Television Industry (00:04:15) The Evolution and Structure of Broadcast Networks (00:08:12) Revenue Streams and Financial Dynamics (00:14:26) Nexstar Media Group: Growth and Acquisitions(00:21:34) Financial Profile and Revenue Streams (00:32:35) Challenges and Future of Broadcast Television (00:47:15) Capital Allocation and Strategic Insights (00:53:01) Key Lessons from Nexstar