Nexstar adn Sinclair’s Stance on ‘Jimmy Kimmel Live!’ Highlights Local TV’s Complex Relationship with Networks

Nexstar Media Group and Sinclair Broadcast Group’s decision highlights the influence and sometimes-tenuous relationship local TV station owners have with national broadcasters such as Disney-owned ABC.

Kimmel was briefly suspended over comments he made in the aftermath of conservative activist Charlie Kirk’s assassination.

Here are key facts about the two companies, which collectively own about a quarter of ABC affiliates, including in some bigger cities like Washington, D.C.

Nexstar Media Group

Nexstar Media group, based in Irving, Texas, operates 28 ABC affiliates.It said Tuesday that it stands by last week’s decision to preempt the show, “pending assurance that all parties are committed to fostering an surroundings of respectful, constructive dialog in the markets we serve.”

It added “Jimmy Kimmel Live!” will be available nationwide on multiple Disney-owned streaming products, and Nexstar’s stations will focus on “continuing to produce local news and other programming relevant to their respective markets.”

Nexstar owns ABC-affiliated stations in cities including Nashville, Tennessee; new Orleans; Salt Lake City and smaller markets including Evansville, Indiana; and Binghamton, N.Y., among others.

In all,the company owns or partners with more than 200 stations in 116 U.S. markets, and owns broadcast networks the CW and NewsNation, and also the political website The Hill and nearly a third of the Food Network.

It hopes to get even bigger. Last month, it announced a $6.2 billion deal to buy TEGNA Inc., which owns 64 other TV stations.

The deal would require the Federal Communications Commission to change rules limiting the number of stations a single company can own. The FCC’s chair, Brendan Carr, has expressed openness to changing the rule.

Disney Holds the Upper Hand in Content Negotiations

Disney is in a relatively strong position when negotiating with cable companies and streaming services, despite concerns about the future of conventional broadcast television. While the ABC broadcast network was once a central pillar of Disney’s business, it now represents a “very small percentage” of the company’s overall revenue, according to Alan Wolk, co-founder and senior analyst at TVRev. This shift in financial importance gives Disney more flexibility and leverage in these crucial negotiations.

Published: 2025/09/24 02:05:24

The Declining Importance of ABC

The traditional broadcast model is facing significant challenges due to the rise of streaming and on-demand content. As viewership fragments across numerous platforms,the value of linear television networks like ABC has decreased. Disney, though, has proactively diversified its revenue streams, mitigating the impact of this decline.

Diversification through Streaming and Cable Networks

Disney’s strength lies in its extensive portfolio of streaming services, including Disney+, Hulu, and ESPN+, as well as its established cable networks like ESPN and FX. These platforms provide option avenues for reaching consumers and generating revenue, reducing Disney’s reliance on the ABC broadcast network. This diversification allows Disney to negotiate from a position of strength, as they are not solely dependent on carriage fees from traditional cable and satellite providers.

Impact on Negotiations

The shift in revenue distribution fundamentally alters the power dynamic in negotiations. Cable and streaming companies need Disney’s content to attract and retain subscribers. Disney, knowing its content is valuable and accessible through its own platforms, can afford to be more assertive in its demands. This includes negotiating favorable terms for carriage fees, streaming rights, and other key aspects of content distribution agreements.

Cable Company Concerns

Cable companies are increasingly concerned about the rising cost of content and the potential for “cord-cutting” – subscribers canceling their traditional cable subscriptions in favor of streaming services. Disney’s strong negotiating position exacerbates these concerns, potentially leading to higher costs for consumers or, in certain specific cases, the removal of Disney content from certain platforms. Recent disputes between Disney and Charter Communications illustrate this tension, highlighting the challenges of balancing content costs with subscriber affordability.

Key takeaways

• The ABC broadcast network contributes a small percentage to Disney’s overall revenue.
• Disney’s streaming services and cable networks provide alternative revenue streams and increase its negotiating leverage.
• Cable companies face increasing pressure to manage content costs and prevent subscriber churn.
• Disney is in a strong position to dictate terms in content distribution agreements.

Looking Ahead

As the media landscape continues to evolve, Disney’s diversified approach is likely to become even more crucial. The company’s ability to leverage its streaming platforms and cable networks will determine its success in navigating the challenges and opportunities of the future. Further consolidation in the media industry and the continued growth of streaming will likely intensify these negotiations, making Disney’s position even more pivotal.