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Removal of Nexstar (NXST) Deprives Viewers of Local News
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Nexstar (NXST - Free Report) recently announced that its 159 local television stations have been removed by DIRECTV, impacting more than 10 million subscribers on satellite, cable and streaming systems. Despite unsuccessful negotiations for a new distribution agreement, DIRECTV declined Nexstar's offer to extend the current agreement.
Consequently, viewers have been deprived of essential local news, weather updates, sports coverage, including the Women's World Cup and the MLB All-Star Game and other entertainment programming. The loss also affects critical updates on summer storms and tornadoes.
Nexstar has been engaged in ongoing and genuine negotiations with DIRECTV since May, aiming to establish a long-term contract that benefits both parties. Nexstar has a history of reaching favorable agreements with cable, satellite and telco partners, having successfully completed more than 500 such agreements in the last three years alone.
NXST maintains optimism for a swift resolution that would restore viewers' access to beloved network programming, live sports events, comprehensive local news and other community-specific content. The company emphasizes the importance of delivering vital emergency updates, which DIRECTV is currently charging its subscribers for and hopes for a timely agreement to address these concerns.
Growing Media and Entertainment Market to Aid Nexstar’s Top Line
According to a Mordor Intelligence report, the media and entertainment industry is projected to experience a compound annual growth rate of more than 13% in the forecast period. The industry has undergone significant changes due to rapid advancements in technology, leading to the incorporation of disruptive elements that contribute to the sector's profitability and overall growth.
The Media and Entertainment market is dominated by players like Warner Bros. Discovery (WBD - Free Report) , Disney (DIS - Free Report) and News Corporation (NWSA - Free Report) .
Warner Bros. Discovery is a renowned media and entertainment company that specializes in the creation and distribution of high-quality and popular content. The company’s services include premium pay television, streaming platforms, television and feature film production, home video distribution, and video game production and distribution. Its diverse portfolio encompasses well-known media brands, such as CNN, TBS, HBO, Cartoon Network and many more.
Disney’s operations include its streaming services, advertising sales division and linear television networks, encompassing broadcast, cable and international syndication. Its primary objective is to strategically capitalize on content from Disney's three content groups, such as Studios, General Entertainment and ESPN & Sports.
News Corporation is a company that operates in the media and information services sector. Its business encompasses various divisions, including news and information services, book publishing, digital real estate and cable network programming services. The company caters to customers worldwide, providing them with a wide range of media-related products and services.
The media and entertainment market is characterized by intense competition, with key players holding significant market share. However, the emergence of 5G network technology in the realm of over-the-top services is facilitating the entry of new players, enabling them to expand their market presence and extend their operations in emerging economies. This enables players like Nexstar to mark its presence and acquire a niche market.
Nexstar to Boost Advertisement Revenues
Shares of Nexstar have declined 4.9% year to date against the Zacks Consumer Discretionary sector’s rise of 11.5% in the same period.
This Zacks Rank #1 (Strong Buy) company intends to combine the CW network and NewsNation with its local stations. This strategic move involves packaging these assets together to present a comprehensive offering to advertisers during the upfront season. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for NXST’s second-quarter 2023 earnings is pegged at a profit of $2.13 per share, indicating a year-over-year decline of 61.69%. The Zacks Consensus Estimate for revenues is pegged at $1.25 billion, indicating year-over-year growth of 0.29%.
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Removal of Nexstar (NXST) Deprives Viewers of Local News
Nexstar (NXST - Free Report) recently announced that its 159 local television stations have been removed by DIRECTV, impacting more than 10 million subscribers on satellite, cable and streaming systems. Despite unsuccessful negotiations for a new distribution agreement, DIRECTV declined Nexstar's offer to extend the current agreement.
Consequently, viewers have been deprived of essential local news, weather updates, sports coverage, including the Women's World Cup and the MLB All-Star Game and other entertainment programming. The loss also affects critical updates on summer storms and tornadoes.
Nexstar has been engaged in ongoing and genuine negotiations with DIRECTV since May, aiming to establish a long-term contract that benefits both parties. Nexstar has a history of reaching favorable agreements with cable, satellite and telco partners, having successfully completed more than 500 such agreements in the last three years alone.
NXST maintains optimism for a swift resolution that would restore viewers' access to beloved network programming, live sports events, comprehensive local news and other community-specific content. The company emphasizes the importance of delivering vital emergency updates, which DIRECTV is currently charging its subscribers for and hopes for a timely agreement to address these concerns.
Nexstar Media Group, Inc Price and Consensus
Nexstar Media Group, Inc price-consensus-chart | Nexstar Media Group, Inc Quote
Growing Media and Entertainment Market to Aid Nexstar’s Top Line
According to a Mordor Intelligence report, the media and entertainment industry is projected to experience a compound annual growth rate of more than 13% in the forecast period. The industry has undergone significant changes due to rapid advancements in technology, leading to the incorporation of disruptive elements that contribute to the sector's profitability and overall growth.
The Media and Entertainment market is dominated by players like Warner Bros. Discovery (WBD - Free Report) , Disney (DIS - Free Report) and News Corporation (NWSA - Free Report) .
Warner Bros. Discovery is a renowned media and entertainment company that specializes in the creation and distribution of high-quality and popular content. The company’s services include premium pay television, streaming platforms, television and feature film production, home video distribution, and video game production and distribution. Its diverse portfolio encompasses well-known media brands, such as CNN, TBS, HBO, Cartoon Network and many more.
Disney’s operations include its streaming services, advertising sales division and linear television networks, encompassing broadcast, cable and international syndication. Its primary objective is to strategically capitalize on content from Disney's three content groups, such as Studios, General Entertainment and ESPN & Sports.
News Corporation is a company that operates in the media and information services sector. Its business encompasses various divisions, including news and information services, book publishing, digital real estate and cable network programming services. The company caters to customers worldwide, providing them with a wide range of media-related products and services.
The media and entertainment market is characterized by intense competition, with key players holding significant market share. However, the emergence of 5G network technology in the realm of over-the-top services is facilitating the entry of new players, enabling them to expand their market presence and extend their operations in emerging economies. This enables players like Nexstar to mark its presence and acquire a niche market.
Nexstar to Boost Advertisement Revenues
Shares of Nexstar have declined 4.9% year to date against the Zacks Consumer Discretionary sector’s rise of 11.5% in the same period.
This Zacks Rank #1 (Strong Buy) company intends to combine the CW network and NewsNation with its local stations. This strategic move involves packaging these assets together to present a comprehensive offering to advertisers during the upfront season. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for NXST’s second-quarter 2023 earnings is pegged at a profit of $2.13 per share, indicating a year-over-year decline of 61.69%. The Zacks Consensus Estimate for revenues is pegged at $1.25 billion, indicating year-over-year growth of 0.29%.