The broadcaster has put together a team to figure out what to do when it loses its CBS affiliation at the end of the year. No matter what, CEO Vince Sadusky says it's "committed to localism, which is a core part of our values and strategies."
DMA 26 (INDIANAPOLIS)
LIN Studying Programming Options For WISH
LIN Media CEO Vince Sadusky is not giving up on WISH Indianapolis just because it will lose its CBS affiliation at the end of the year.
“We look at WISH as an opportunity to work a different model,” Sadusky said during a conference call today in which he and Media General CEO George Mahoney updated investors on the merger of their two companies. “One thing is for certain: We absolutely continue to be committed to the community and we continue to be committed to localism, which is a core part of our values and strategies.”
Sadusky said the new model is a work in progress, but offered no specifics. “It is a little early right now…. We have assembled a strategic team that has experience in running unaffiliated television stations and we’re currently putting our heads together.”
Nine days ago, CBS announced that it was switching its Indianapolis affiliation to Tribune’s WTTV, currently the market’s CW affiliate. Come Jan. 1, WTTV will put CBS on its main channel and move The CW to a subchannel. WTTV also owns the Fox affiliate in town.
In making the announcement, CBS made clear that the breakup was due to LIN’s unwillingness to meet its reverse comp demands and that it was ready to shed other recalcitrant affiliates.
“We always hope to work with the incumbent,” said CBS’s Ray Hopkins at the time. “But if the incumbent doesn’t meet the value that we perceive it to be, we will certainly test the marketplace.”
BRAND CONNECTIONS
Sadusky said that he preferred not to discuss reverse comp or “retrans splits” with the networks given that LIN is still in discussions with CBS regarding affiliational renewals. LIN has 10 other CBS affiliates.
However, he offered some general thoughts.
“These affiliation changes happen fairly infrequently given the beneficial relationship that both the station groups and the networks provide to each other when you have a highly rated television station with great syndicated and local programming.
“They do happen from time to time and some view those opportunistic. As far as we’re concerned, I believe by and large, with few exceptions, this kind of dogged pursuit of affiliation changes really serves to drive up the cost to the industry.”
Comments (9)
Dale Godfrey says:
August 20, 2014 at 4:29 pm
C’mon. There is obviously something else in the pot that is simmering over the change in Indianapolis. If this were a wholesale change, as happened when five CBS stations all flipped to Fox under New World, that would be understandable. But seeing as this is ONE of eleven CBS-Lin stations, perhaps this was a warning shot by CBS to Lin to perhaps not be so daring as they go forward with the remaining ten CBS affiliates.
Rachel Martin says:
August 20, 2014 at 5:37 pm
All you need to do is read the earlier comments (March-April) made by CBS regarding their retrans goal for next year. The retrans goals were based on total population, not subscribers. CBS wants stations to pay then money for viewers watching over the air? This was a wake-up call to every CBS-station negotiation…we will move out
Wagner Pereira says:
August 21, 2014 at 12:08 am
Actually this shows what the value of CBS is to a station. According to estimates, this took $1.85 off the price of LIN which has 55.6M Shares outstanding according to their latest SEC filings. 55.6M * $1.85 means that around $103M of value is attached to being the CBS affiliate in Indy. According to @TVNewsCheck database, there are 1,096,650 TVHH in Indy. Quick math says the value of a TV Household to a CBS Station is roughly $100 per TVHH. Also, if you are Dispatch Broadcasting, with only 1 NBC Affiliate (and it is in Indianapolis) be VERY afraid and check your Affiliation Agreement very closely. You can bet the Media General will make this market a must at their next Group Renewal………..Please follow me on Twitter @NotTedatACA
Don Thompson says:
August 20, 2014 at 5:50 pm
TV Broadcasting’s biggest problem isn’t the free-market, consumer-friendly Rockefeller-Thune Local Choice proposal, which is a Fort Knox windfall for local TV stations ………….. No, the real and growing problem is Air Marshal Moonves at CBS: “CBS Sending Big Message To Affiliates” ………….. .By John Sewarda/Benzinga ………. CBS is sending a message to its affiliates: Pay up or get out. CBS Chief Executive Leslie Moonves signaled that the company was seeking higher fees in a conference call with analysts last week. “We decide what we think is fair,” said Moonves……………….. Please follow me on Twitter @TedatACA
Wagner Pereira says:
August 20, 2014 at 8:23 pm
The ACA would love to get rid of all the local broadcast stations so you could just negotiate with the 4 networks Nationwide, wouldn’t you!!!!!………..Please follow me on Twitter @NotTedatACA
Don Thompson says:
August 20, 2014 at 7:02 pm
Hey, Media General (MEG), do LIN Media (LIN) shareholders get another “window-shop” opportunity to seek a better offer than the 6% haircut you handed out today? Didn’t think so ………………………. Please follow me on Twitter @TedatACA
Wagner Pereira says:
August 20, 2014 at 9:18 pm
Why does the ACA want anyone to OVERPAY for something that is not worth what it once was? Is that what the ACA is all about? ………………………. Please follow me on Twitter @Not TedatACA
Darrell Bengson says:
August 21, 2014 at 9:33 am
The ACA is a bunch of worthless freeloaders.
Steve Ingram says:
August 22, 2014 at 12:25 pm
it seems interesting that the ACA is fighting so hard for attention that their executives think it appropriate to converse with the natives in these columns. The press they enjoy being quoted in vociferously doesn’t seem to be sufficient space to satisfy their inflated egos. They must be NCTA wannabes.