Business Breakdowns
Episode 221 Nexstar Media: Broadcasting’s Biggest Bet
Business Breakdowns

Episode 221: Nexstar Media: Broadcasting’s Biggest Bet

Business Breakdowns

Episode 221

Nexstar Media: Broadcasting’s Biggest Bet

Simeon McMillan is the founder of Accrued Interest. We cover how retransmission fees revolutionized the economics of broadcasting, the consolidation wave that decimated local stations, and why cord-cutting threatens the entire ecosystem.

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

Nexstar Media: Broadcasting’s Biggest Bet

Introduction

Zack
I'm Zack Fuss and today we are breaking down Nexstar Media Group. Nexstar is a business that may not carry household recognition, but controls more local television stations than any other company in the U.S. My guest today is Simeon McMillan, a founder of media-focused research firm Accrued Interest.

Simeon brings a unique perspective to the sector. He's held roles as a banker and executive within prominent television, cable and radio businesses including Univision Networks and Mediaco. 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 to its current state.

Sim will break down the revenue streams that sustain this ecosystem and how subscriber fees from multichannel video programming distributors MVPDs like YouTube TV and Comcast Cable are distributed among the networks and their affiliates. And then we'll address the impact of cord cutting on subscribers and how those viewership metrics impact pricing power within the television ecosystem.

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