With a possible nationwide coverage of 72% in combining the two TV station groups -- in addition to Tribune Media-owned cable network WGN America -- it could mean far more national ad revenues.
Traditionally, having TV station coverage of more than 70% of U.S. TV homes has meant the ability to attract national/network TV media dollars.
To be fair, Sinclair executives didn’t talk specifically about creating a new national TV network -- only other ways of attracting new advertising dollars. For example, the new broadcast technology standard, ATSC 3.0 is poised to allow TV stations to develop all kinds of new products -- including national TV platforms.
Chris Ripley, president/CEO of Sinclair Broadcast Group, says the new technology will bring the company closer to having a national footprint. "It's that sort of [national] network that opens up all the incremental revenue that are beyond core broadcasting,” in speaking at a press conference about the deal.
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But national advertisers might be cautious when considering other remarks -- especially it pertains to WGN America.
Ripley believes this network needs to cut back on high-cost programming in favor or low-budget originals and reruns. "WGNA does not have a revenue problem. It's got lots of revenues. It's got a nice contractual ramp of affiliates over the next couple of years and a nice base of advertising revenue.”
Trouble comes when national TV advertisers make choices, they look increasingly at what is “premium” TV programming and what isn’t -- especially against some of the swill that exists on digital media.
Reruns, low-budget originals? Are we talking the early days of U.S. syndication or cable TV?
Against a fast-growing TV-video world, TV networks now continually try to distinguish themselves as the producers of high-quality programming, which also goes for top established cable TV networks (TNT, USA, FX, etc.), and other cable networks.
Sending a signal to investors and other potential business partners you want to cut costs is financially prudent. But also telling them you want to program TV networks/platforms on the cheap -- in a world of $6 billion TV production budgets from Netflix -- doesn’t offer up much TV confidence.
A low-rent TV network? A guess it depends on the neighborhood.
More likely, they are thinking about launching syndicated talk shows and, probably, selling national ads via their version of an "unwired network", Wayne.
The ATSC 3.0 technology roadmap is severely impaired and DEAD ON ARRIVAL for mobile.