The Nest Secures Nationwide Distribution Gains; Adds 35 TEGNA Stations

Rhea-AI Summary

Sinclair Broadcast Group expands The Nest network's reach to 79% of US households through a new distribution agreement with TEGNA, adding 35 additional channels in major markets. The agreement also includes a station upgrade for Comet network. The Nest offers 'comfort food' programming and shows significant growth in 2023, with plans for further expansion in 2024 and beyond.

Insights

Market Research Analyst

The expansion of Sinclair Broadcast Group's multicast network, The Nest, through an affiliate distribution agreement with TEGNA, represents a strategic maneuver in the media landscape. This development enhances the network's distribution footprint, now reaching 79% of the U.S. over-the-air television households, which is likely to attract more advertisers seeking broader national reach. Consequently, this could result in increased ad revenue for Sinclair.

Furthermore, securing key 'big 4 network' VHF channel positions in major markets enhances the network's visibility and competitiveness. It's essential to note that VHF channels are traditionally more coveted due to their better signal propagation characteristics compared to UHF channels. This can lead to higher viewership numbers, which are critical for the network's ratings and, by extension, its advertising rates.

Financial Analyst

From a financial perspective, Sinclair Broadcast Group's multicast network expansion should be monitored by investors for its potential to impact SBGI's revenue streams. The multicast networks' year-over-year growth, as indicated by the percentage increases for Comet, CHARGE! and TBD, suggests a positive trend in viewership and, implicitly, advertising revenue. This growth trajectory, particularly if it sustains or accelerates with the expansion of The Nest, could positively influence Sinclair's stock performance in the medium to long term.

Investors should also consider the capital expenditure associated with such expansion and weigh it against the projected incremental revenue from advertising and potential syndication deals. The strategic station upgrade for Comet to a CBS affiliate in Houston, a significant TV market, may also contribute to a more favorable market position for Sinclair and should be factored into the valuation of the company.

Media Industry Analyst

The decision to invest in 'comfort food' programming, encompassing genres like home improvement and true crime, aligns with current consumer trends favoring familiar and engaging content. By curating a mix of programming that appeals to a broad audience, Sinclair is positioning The Nest to capitalize on the growing over-the-air (OTA) TV viewership, which has seen a resurgence due to cord-cutting. The move to provide free, accessible content could draw viewers away from paid cable subscriptions, thereby increasing the network's market share within the television industry.

The multicast approach allows Sinclair to leverage existing infrastructure to broadcast multiple channels, optimizing their spectrum usage. This can be a cost-effective way to test new content formats and establish a diverse portfolio of channels that cater to niche markets, potentially leading to higher audience engagement and loyalty.

Sinclair-Owned Multicast Network Now Available in 44 of the Top-50 U.S. Markets; Expanding the Network’s Reach to 79% of the US

BALTIMORE--(BUSINESS WIRE)-- Sinclair Broadcast Group, a subsidiary of Sinclair Inc., (Nasdaq: SBGI) today announced a new broadcast affiliate distribution agreement with TEGNA to expand the clearances for The Nest, Sinclair’s fourth multicast network.

The Nest, the free, over-the-air, national network, will now be available on 35 additional channels, reaching 79% of all US OTA television households. The new affiliations include major market “big 4 network” VHF channel positions in Atlanta, Washington DC, Phoenix, Tampa, Minneapolis, Cleveland, Sacramento, Indianapolis, San Diego, New Orleans and more. With the addition of these markets, The Nest is now available in 44 of the top-50 markets.

The agreement also includes a significant station upgrade for Comet, Sinclair’s sci-fi and fantasy network, to the TEGNA-owned CBS affiliate KHOU TV channel 11 in Houston, Texas.

Beginning this month, The Nest will be available on the following TEGNA-owned channels:

DMA Rank	Market	Primary Network	Station	Channel
7	Atlanta, GA	NBC	WXIA	11.4
9	Washington, DC	CBS	WUSA	9.4
11	Phoenix, AZ	NBC	KPNX	12.5
12	Tampa, FL	CBS	WTSP	10.4
15	Minneapolis, MN	NBC	KARE	11.5
17	Denver, CO	MyNet	KUSA	9.6
19	Cleveland, OH	NBC	WKYC	3.5
20	Sacramento, CA	ABC	KXTV	10.6
21	Charlotte, NC	NBC	WCNC	36.5
25	Indianapolis, IN	NBC	WTHR	13.6
30	San Diego, CA	CBS	KFMB	8.6
32	Hartford, CT	FOX	WTIC	61.5
35	Austin, TX	ABC	KVUE	24.5
41	Jacksonville, FL	ABC	WJXX	25.5
48	Louisville, KY	ABC	WHAS	11.5
50	Memphis, TN	ABC	WATN	24.6
51	New Orleans, LA	CBS	WWL	4.3
61	Knoxville, TN	NBC	WBIR	10.5
64	Spokane, WA	CBS	KREM	2.4
65	Tucson, AZ	MyNet	KTTU	18.2
67	Des Moines, IA	ABC	WOI	5.4
75	Columbia, SC	CBS	WLTX	19.5
80	Toledo, OH	CBS	WTOL	11.7
81	Huntsville, AL	FOX	WZDX	54.7
83	Waco, TX	NBC	KCEN	6.6
96	Ft Smith, AR	CBS	KFSM	5.5
97	Boise, ID	NBC	KTVB	7.5
104	Davenport, IA	ABC	WQAD	8.6
109	Tyler, TX	CBS	KYTX	19.7
120	Macon, GA	CBS	WMAZ	13.5
130	Corpus Christi, TX	ABC	KIII	3.6
147	Odessa, TX	NBC	KWES	9.5
156	Bangor, ME	NBC	WLBZ	2.4
189	Twin Falls, ID	NBC	KTFT	7.6
-	Flagstaff, AZ	NBC	KNAZ	2.5

The Nest, which launched in Oct ’23, offers “comfort food” programming, comprised of home improvement, true crime, factual reality series, and celebrity-driven family shows, joining Sinclair’s lineup of national broadcast networks, Comet, CHARGE!, and TBD. In 2023, the networks experienced unprecedented year over year growth, with Comet +17%, CHARGE! +37% and TBD. +10%* and continuing into 2024.

As previously announced, Sinclair continues to expand distribution of its multicast networks and invest in successful, proven programming, adding iconic franchises to the networks’ lineups, which will continue in 2024 and beyond.

“Multicast broadcast TV continues to grow as audiences discover our group of unique, new, free over the air TV networks,” said Lee Schlazer, SVP, Distribution. “We’re excited to bring our latest network, The Nest, to TEGNA stations across the country.”

For more information, program schedules and a location finder, please visit: https://sbgi.net/networks/.

*Source: Nielsen L+SD P2+ Imp, Total Day (M-Su/9am-3am), 2023 vs 2022

About Sinclair Broadcast Group:

Sinclair Broadcast Group is a subsidiary of Sinclair Inc., (Nasdaq: SBGI) a diversified media company and a leading provider of local news and sports. The Company owns, operates and/or provides services to 185 television stations in 86 markets affiliated with all the major broadcast networks; owns Tennis Channel and multicast networks Comet, CHARGE!, TBD. and The Nest; and owns and provides services to 21 regional sports network brands. Sinclair’s content is delivered via multiple platforms, including over-the-air, multi-channel video program distributors, and the nation’s largest streaming aggregator of local news content, NewsON. The Company regularly uses its website as a key source of Company information which can be accessed at www.sbgi.net.

Category: General

View source version on businesswire.com: https://www.businesswire.com/news/home/20240220455862/en/

Media contact:

Sinclair - Jessica Bellucci jbellucci-c@sbgtv.com

Source: Sinclair, Inc.

FAQ

What is the latest broadcast affiliate distribution agreement announced by Sinclair Broadcast Group?

Sinclair Broadcast Group announced a new broadcast affiliate distribution agreement with TEGNA to expand the clearances for The Nest, its fourth multicast network.

What percentage of US OTA television households will The Nest reach after the expansion?

The Nest will now be available on 35 additional channels, reaching 79% of all US OTA television households.

Which major market 'big 4 network' VHF channel positions are included in the new affiliations for The Nest?

The new affiliations include major market 'big 4 network' VHF channel positions in Atlanta, Washington DC, Phoenix, Tampa, Minneapolis, Cleveland, Sacramento, Indianapolis, San Diego, New Orleans, and more.

What network will experience a significant station upgrade as part of the agreement with TEGNA?

Comet, Sinclair's sci-fi and fantasy network, will experience a significant station upgrade to the TEGNA-owned CBS affiliate KHOU TV channel 11 in Houston, Texas.

What type of programming does The Nest offer?

The Nest offers 'comfort food' programming, including home improvement, true crime, factual reality series, and celebrity-driven family shows.