Local stations are continuing to push to reclaim the 10 p.m. hour from broadcast networks, a top industry exec said Wednesday.
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Mike Hayes, President of Hearst Television, was asked during a panel Wednesday at the NAB Show New York about the state of discussions about 10 p.m., a topic that gained wide attention in 2022.
“I don’t think it’s ever stopped,” Hayes said of the conversation. He said his long-ago predecessor at Hearst, David Barrett, “first raised this in the late-’90s with ABC. And we continue to have conversations with the networks. We see it as a win-win.”
Stations have been provoked in recent years by network owners prioritizing streaming and starving their prime-time lineups. There have also been dust-ups like a later-abandoned plan by NBCUniversal to offer access to late-night shows like The Tonight Show with Jimmy Fallon at 8 p.m. on Peacock, which would have undercut affiliates. The view from many local TV execs is that their programming is often capable of drawing more reliable tune-in than what networks offer given budget constraints and the need to bolster streaming services.
“I don’t think it’s any secret,” Hayes said. “There’s a lot of concentration on streaming platforms and scripted programs there. Our place in the ecosystem is live news and community service. So the ability to program one less hour of prime and move that late, local news up, potentially move the late-night talk shows up, I think it’s a win-win for everybody and we’ll continue to have those conversations.”
Andy Alford, President, Broadcast, Nexstar Media Group, was asked about a related trend in the local TV sector: reverse-compensation revenues exceeding what some local station groups get for retransmission consent.
“At Nexstar, we’re probably having different conversations given our scale,” he said. “There has to be a recognition that the affiliates bring a great deal of value to the broadcast networks. The magic of national programming is when it’s married to local affiliates and that creates real value that can be monetized.”
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Nexstar, which was already the No. 1 owner of local stations in the U.S., vaulted into the national ranks when it acquired 75% of The CW in 2022.
“The real beauty of the American system of broadcasting is local being the front door into America’s households,” Hayes said. “We’re very confident in our place in the arc of programming, with local news and community service and what we bring and how the whole system is built. As those conversations continue to evolve, we’re confident that our conversations with our network partners will carry us through and they’ll see the same value in us that we see in them.”
Panelists were asked about the growing speculation that 2025, a post-Olympic, non-election year, could see advertising revenue fall off “a cliff.” Next year “is not a cliff at all for us,” said Valari Staab, Chairman, NBCUniversal Local. “There are definitely challenges in the industry, but we’re well-positioned for them.”
She estimated that linear ads would fall by 5% to 6% in 2025, but Spot On, NBCU’s streaming-centered ad vehicle, is projecting double-digit growth next year.
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