IRVING, Texas and BALTIMORE, July 20,
2017 /PRNewswire/ -- In preparation for the approval of
ATSC 3.0 by the Federal Communications Commission ("FCC") as well
as the implementation of national television station repacking,
Sinclair Broadcast Group, Inc. (Nasdaq: SBGI) ("Sinclair") and
Nexstar Media Group, Inc. (Nasdaq: NXST) ("Nexstar") (collectively
"the Companies") have reached a tentative agreement on principles
to coordinate the transition of the over-the-air delivery of ATSC
3.0 "NextGen" television services in 97 television markets.
The transition is a complicated process requiring
coordination and cooperation between in-market television
broadcasters. The tentative agreement -- made pursuant to
Companies' previously announced Spectrum Consortium that promotes
spectrum aggregation, innovation and monetization and enhance their
abilities to compete in the wireless data transmission sector --
includes 43 markets where both Companies own a television station,
and a plan to spearhead the transition for shared "NextGen"
services in the 54 markets where only one of the Companies owns or
operates stations.
Once the ATSC 3.0 standard is approved by the FCC, the Spectrum
Consortium expects that television stations will be permitted to
enter into Channel Sharing Agreements where existing ATSC 1.0 as
well as "Next Gen" ATSC 3.0 will be simulcast on different
stations' spectrum. The agreements between Sinclair and
Nexstar will provide that the Companies share their spectrum within
their markets, with some spectrum remaining as 1.0 and other
spectrum migrated to ATSC 3.0 enabled "NextGen" services. The FCC's
recent broadcast spectrum auction and mandated repack of remaining
broadcast television stations has complicated the process of
transitioning to the new technology by eliminating much of the
spectrum that was dedicated to free over the air
broadcasting. As such, the Spectrum Consortium believes that
agreed upon coordination principles are critical to ensuring that a
transition to the upgraded technology can occur.
"We look forward to working with Nexstar to enable new and
innovative services that add value to the viewers we serve, our
advertising clients and our broadcast assets. Sinclair and Nexstar
are leading the broadcast industry in this critical technology
upgrade and we are confident that through our coordination and
mutual efforts we can navigate this transition together," said
Chris Ripley, President and CEO of
Sinclair.
"Our collaboration with Sinclair demonstrates Nexstar's
commitment to making 'NextGen' television a reality for the
communities and businesses we serve across America. Our
research and analysis indicates that this market-based solution to
the transition is a win for broadcasters and for television viewers
who will soon have access to the enhanced over-the-air services
that this new technology can bring, which will enable us to remain
highly competitive in today's multi-platform environment," said
Perry Sook, Chairman, President and
Chief Executive Officer of Nexstar.
Specific market roll out schedules and sharing arrangements are
in development in anticipation of the FCC approval of the new ATSC
3.0 standard by the fourth quarter of 2017.
About Sinclair Broadcast Group, Inc. (Nasdaq:
SBGI)
Sinclair is one of the largest and most diversified
television broadcasting companies in the country. Pro forma for the
Tribune acquisition (before any related divestitures) and all
previously announced pending transactions, the Company will own,
operate and/or provide services to 233 television stations in 108
markets. The Company has multiple emerging networks as well as
stations affiliated with all the major networks. Sinclair is a
leading local news provider in the country and a producer of live
sports content. Sinclair's content is delivered via
multiple-platforms, including over-the-air, multi-channel video
program distributors, and digital platforms. The Company regularly
uses its website as a key source of Company information which can
be accessed at www.sbgi.net.
About Nexstar Media Group, Inc.
Nexstar Media Group is
a leading diversified media company that leverages localism to
bring new services and value to consumers and advertisers through
its traditional media, digital and mobile media platforms. Nexstar
owns, operates, programs or provides sales and other services to
170 television stations and related digital multicast signals
reaching 100 markets or nearly 39% of all U.S. television
households. Nexstar's portfolio includes primary affiliates of NBC,
CBS, ABC, FOX, MyNetworkTV and The CW. Nexstar's community
portal websites offer additional hyper-local content and verticals
for consumers and advertisers, allowing audiences to choose where,
when and how they access content while creating new revenue
opportunities. For more information please visit
www.nexstar.tv.
Forward-Looking Statements for Nexstar Media
Group
This communication includes forward-looking
statements. We have based these forward-looking statements on our
current expectations and projections about future events.
Forward-looking statements include information preceded by,
followed by, or that includes the words "guidance," "believes,"
"expects," "anticipates," "could," or similar expressions. For
these statements, Nexstar claims the protection of the safe harbor
for forward-looking statements contained in the Private Securities
Litigation Reform Act of 1995. The forward-looking statements
contained in this communication, concerning, among other things,
future financial performance, including changes in net revenue,
cash flow and operating expenses, involve risks and uncertainties,
and are subject to change based on various important factors,
including the impact of changes in national and regional economies,
the ability to service and refinance our outstanding debt,
successful integration of acquired television stations and digital
businesses (including achievement of synergies and cost
reductions), pricing fluctuations in local
and national advertising, future regulatory actions and
conditions in the television stations' operating areas, competition
from others in the broadcast television markets, volatility in
programming costs, the effects of governmental regulation of
broadcasting, industry consolidation, technological developments
and major world news events. Nexstar undertakes no obligation to
update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise. In light of
these risks, uncertainties and assumptions, the forward-looking
events discussed in this communication might not occur. You should
not place undue reliance on these forward-looking statements, which
speak only as of the date of this release. For more details on
factors that could affect these expectations, please see Nexstar's
other filings with the SEC.
Forward-Looking Statements for Sinclair Broadcast
Group
The matters discussed in this news release include
forward-looking statements regarding, among other things, future
operating results. When used in this news release, the words
"outlook," "intends to," "believes," "anticipates," "expects,"
"achieves," "estimates," and similar expressions are intended to
identify forward-looking statements. Such statements are subject to
a number of risks and uncertainties. Actual results in the future
could differ materially and adversely from those described in the
forward-looking statements as a result of various important
factors, including, but not limited to the impact of approval,
adoption and implementation of ATSC 3.0, changes in national and
regional economies, the volatility in the U.S. and global economies
and financial credit markets which impact our ability to forecast,
our ability to integrate acquired businesses and maximize operating
synergies, our ability to obtain necessary governmental approvals
for announced acquisitions, successful execution of outsourcing
agreements, pricing and demand fluctuations in local and national
advertising, volatility in programming costs, the market's
acceptance of new programming, our news share strategy, our local
sales initiatives, the execution of retransmission consent
agreements, our ability to identify and consummate investments in
attractive non-television assets and to achieve anticipated returns
on those investments once consummated, and any other risk factors
set forth in the Company's most recent reports on Form 10-Q, Form
10-K and Form 8-K, as filed with the Securities and Exchange
Commission. There can be no assurances that the assumptions
and other factors referred to in this release will occur. The
Company undertakes no obligation to publicly release the result of
any revisions to these forward-looking statements except as
required by law.
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SOURCE Sinclair Broadcast Group, Inc.