Marci Ryvicker, media analyst of Wells Fargo, believes the recent rise in stock prices among TV station groups is pinned to the hope of deregulation -- where one individual TV station group can grow beyond the federal rules placing a 39% limit on its overall U.S. household coverage.
Where might that go? Ryvicker says the U.S. TV station coverage limit could expand to 45% or possibly even 50% of the marketplace.
In that regard, analysts might wonder what opportunities might arise from perhaps an ever smaller -- but more powerful -- number of TV station groups.
Does local cable advertising stand to make better deal for marketers -- especially when it comes to addressable TV advertising through set-top boxes?
Local retail data -- first-party data from marketers -- continues to gain in value among those major national TV advertisers. But right now, local cable has somewhat of a leg up in this area versus that of local TV stations.
TV stations counter this by saying their local TV viewership, amassed together, is bigger than cable -- and far more lucrative and powerful for local-minded marketers.
New programmatic efforts will help out here for local TV stations. But that’s long-term. Going forward, TV groups will look to more immediate results coming from buying more TV stations.