Sinclair’s Big Plans For Cable News, ATSC 3.0

With the Allbritton closing in the rear-view mirror, Sinclair Broadcast Group is eager to enter the cable news fray with NewsChannel 8, the Washington, D.C., 24-hour cable network that was a central reason Sinclair purchased Allbritton.

“Just looking at ratings for the past year, NewsChannel 8 at 6 a.m. has a higher number of people watching it than CNN, CNBC and Headline News combined,” said David Smith, president-CEO of Sinclair, during this morning’s conference call on second-quarter financial results.

“Here’s a local cable news channel that’s been in business for 20 years or so, with no capital behind it — they didn’t really need it — that does better than those other networks combined.

“I really look forward to taking on Fox News Channel and MSNBC” in the markets NewsChannel 8 covers, he said.

Integrating NewsChannel 8 into the Sinclair fold begins today, as Sinclair executives including David Smith, president-CEO, visit the operation, which shares facilities with WJLA, the ABC affiliate for Washington.

“We’re going over today to meet the staff,” Smith said “It’s a new business for us starting today. It’s a bit early to tell you where our longer term plans are.”

In an interview with TVNewsCheck following announcement of the deal a little over a year ago, Smith said, “We’re looking at NewsChannel 8 as an opportunity for the broadcast industry to create something that’s never been created at the local level.”

Smith said then he envisioned creating “a unique hybrid model that focuses not only on national and international news, which traditionally has lower ratings than local news, but also provides a unique, customized local presence in our markets and the markets of other broadcasters with which we may partner in the future.”

Sinclair is doing something similar on the sports side with its recent launch of American Sports Network. ASN has signed contracts with a number of second-tier NCAA Division 1 conferences, including Conference USA, the Colonial Athletic Association, Big South Conference, Southern Conference and Patriot League.

“These are games you typically would see on ESPN2, ESPN3 and Fox Sports,” said David Amy, Sinclair’s EVP and co-COO.

Adding NewsChannel 8 to the fold will help expand ASN distribution, Steve Pruett, VP and co-COO, said. Sinclair currently is negotiating distribution contracts with 11 companies encompassing 15 million viewers.

It’s been a long road for Sinclair to get FCC clearance for the $985 million Allbritton acquisition. Sinclair was forced to sell its Harrisburg, Pa., station and give up licenses to stations in Birmingham, Ala., and Charleston, S.C., to get the deal done.

Sinclair executives clearly are enthusiastic about what they’re getting.

“Of all the groups we’ve purchased over the last three years, this group has its act together,” said Steve Marks, VP and co-COO. “It’s a very, very well-run company and in each of its markets it does extremely well.”

On another initiative near and dear to Sinclair — ATSC 3.0 — Smith said Sinclair is working on a plan to transition to the new standard that costs virtually nothing and is transparent to the public.

Sinclair in May launched ONE Media LLC, a joint venture between Sinclair and Coherent Logix, to create a next-generation platform that would to enable broadcasters to be competitive on all platforms.

“I don’t necessarily think there’s going to be serious friction in that area,” Smith said in response to a question about potential regulatory hurdles. “We’re working on a plan whereby we can effect the transition to a new standard and not affect the public. I think we have a reasonable solution that, oddly enough ends up costing nothing.”

Saying he was “cautiously optimistic” about bringing lawmakers and regulators on board, Smith acknowledged, “We have some selling to do. If we go to the Hill and talk to a few members of committees, I think we’ll get huge reception … and you’ll see some amazing things happen.”