Journal Broadcast Group Sells 2 Stations

[Guest]

JBG has announced plans to sell their California stations, KMIR and KPSE in Palm Springs, to Virginia-based OTA Broadcasting.

 

This will bring OTA's portfolio of stations up to 6 - currently owning stations in New York and San Francisco that you've likely never even heard of.

[News 9 Viewer 100]

...and a pair of obscure stations in Seattle, one of which is an over the air affiliate of MeTV.

 

This transaction means that the News-Press & Gazette Company cluster (KESQ, KPSP, KDFX, KCWQ and KUNA) is poised to dominate the Palm Springs market. OTA Broadcasting clearly has no experience running a news op, so either they'll shut the news department down or, more likely, run it into the ground.

[Samantha 2896]

I'm still trying to figure out what the point of this whole deal was.

[cal888 0]

 

I'm still trying to figure out what the point of this whole deal was.

 

OTA Broadcasting is a spectrum speculator. If the FCC spectrum auction goes ahead as planned, they would probably be able to sell the station for a premium. One of the main complaints about the auction is the lack of frequencies along the US borders with Canada and Mexico and in major markets. With KMIR, they could auction the spectrum off for San Diego or Los Angeles rates.

 

Likewise for KVOS -- tiny station but in a border region whose spectrum could be valuable, and WLWC, which despite being in the Providence market could sell for Boston rates.

[Samantha 2896]

OK, that makes sense. It's being on the fringes of a very large market and selling for a premium. The question is, once they sell off the station, what happens to NBC?

[GoldenShine9 1513]

 

OK, that makes sense. It's being on the fringes of a very large market and selling for a premium. The question is, once they sell off the station, what happens to NBC?

 

Probably forced to pipe it in from KNBC.

 

KESQ is the leading station in Palm Springs correct?

[effseesee 101]

...and a pair of obscure stations stations in Seattle, one of which is an over the air affiliate of MeTV.

 

This transaction means that the News-Press & Gazette Company cluster (KESQ, KPSP, KDFX, KCWQ and KUNA) is poised to dominate the Palm Springs market. OTA Broadcasting clearly has no experience running a news op, so either they'll shut the news department down or, more likely, run it into the ground.

Even more likely, they will sign a SSA with NPG and have them run the place until OTA sells the spectrum. KMIR has been a train wreck for awhile. Weather is piped in from Vegas and they don't have a sports department.

[CAnewsjunkie 6]

 

Even more likely, they will sign a SSA with NPG and have them run the place until OTA sells the spectrum. KMIR has been a train wreck for awhile. Weather is piped in from Vegas and they don't have a sports department.

 

I think you're right that NPG will eventually get involved either before or after the spectrum sale. But can you imagine... one company running the ABC, NBC, CBS, Fox, CW and Telemundo stations/"channels" (if not MNTV, which KPSE currently has) in the same market?! Boy has Palm Springs fallen.

[Samantha 2896]

 

I think you're right that NPG will eventually get involved either before or after the spectrum sale. But can you imagine... one company running the ABC, NBC, CBS, Fox, CW and Telemundo stations/"channels" (if not MNTV, which KPSE currently has) in the same market?! Boy has Palm Springs fallen.

 

Any SSA/JSA of KMIR would include KPSE. I don't know if NPG could actually handle that. I also imagine there'd be a lawsuit. The only non-NPG choice for viewers would be Entravision's Univision outfit KVER.

 

Also, Entravision is already dipping its toes into other agreements. Up the coast they recently picked up a JSA to handle ad sales for KCBA.

[CircleSeven 1955]

I don't think NPG would even need do that. Let's not forget Gulf-Cali has enough LPs that they could move the NBC affils to one of those, and they don't need to form a SSA with KMIR. Case in point, KYAV-LD. Some would no doubt cry foul, but I don't think there's any other alternative post-auction. Now pre-auction. They're going to have to keep things at least a status quo. I don't know what Journal thinking about, if they have to continue the outsourced weather segments, or OTA would have to hire someone to do the whether, under their own stewardship. But they will no doubt won't do any heavy investment at all. All there's awaiting is auction time, when the inevitability occurs. No one is stupid to what they're really planning on. It's just that pitiful that TV stations have to cease, so the FCC can give that spectrum to the wireless companies.

 

What I said earlier, any broadcaster that sell its spectrum just to receive a big payout, so the FCC can give the wireless companies the use of the airspace for broadband use, these broadcasters should never operate anything relating to television ever again. If the FCC was so keen to squeeze more out of the television spectrum, they should've though about that 4 years ago during DTV transition, before many of the TV stations revolted out of the VHF dial. Now you're asking them to go back to VHF, and possible include a VHF discount? Many TV stations will probably won't move back to VHF, and even if they quadruple the ERP, it'll still won't do any good for the urban canyons. If rhe FCC should've done some homework back then, we'll probably won't be in this mess of freezing channel changes or maximizing existed TV facilities, to wait on the outcome of these auctions. But all it's going to do is to make the airspace worst for broadcaster, posing more intereference in-market, and adjacent channels in adjacent markets.

 

If they want to auction off spectrum, why don't they sell the spectrum that's not on the TV grid. No TV station should succumb to this wireless broadband mess. But the FCC has already made that writing on the wall, didn't it?

[sanewsguy 511]

Never thought I'd be saying this, but all I can say is: even worse buyer/owner than Sinclair. Michael Dell is good with computers but not broadcasting.

[GoldenShine9 1513]

 

I don't think NPG would even need do that. Let's not forget Gulf-Cali has enough LPs that they could move the NBC affils to one of those, and they don't need to form a SSA with KMIR. Case in point, KYAV-LD. Some would no doubt cry foul, but I don't think there's any other alternative post-auction. Now pre-auction. They're going to have to keep things at least a status quo. I don't know what Journal thinking about, if they have to continue the outsourced weather segments, or OTA would have to hire someone to do the whether, under their own stewardship. But they will no doubt won't do any heavy investment at all. All there's awaiting is auction time, when the inevitability occurs. No one is stupid to what they're really planning on. It's just that pitiful that TV stations have to cease, so the FCC can give that spectrum to the wireless companies.

 

What I said earlier, any broadcaster that sell its spectrum just to receive a big payout, so the FCC can give the wireless companies the use of the airspace for broadband use, these broadcasters should never operate anything relating to television ever again. If the FCC was so keen to squeeze more out of the television spectrum, they should've though about that 4 years ago during DTV transition, before many of the TV stations revolted out of the VHF dial. Now you're asking them to go back to VHF, and possible include a VHF discount? Many TV stations will probably won't move back to VHF, and even if they quadruple the ERP, it'll still won't do any good for the urban canyons. If rhe FCC should've done some homework back then, we'll probably won't be in this mess of freezing channel changes or maximizing existed TV facilities, to wait on the outcome of these auctions. But all it's going to do is to make the airspace worst for broadcaster, posing more intereference in-market, and adjacent channels in adjacent markets.

 

If they want to auction off spectrum, why don't they sell the spectrum that's not on the TV grid. No TV station should succumb to this wireless broadband mess. But the FCC has already made that writing on the wall, didn't it?

 

In Palm Springs, VHF might be better actually since it bends better over mountains and canyons, which there are many of there...

[CircleSeven 1955]

 

In Palm Springs, VHF might be better actually since it bends better over mountains and canyons, which there are many of there...

 

I don't disagree. In rural spots, VHF is very dominate, with folks with outdoor antenna. You don't see that in the big cities, unless you like far out, miles from the main transmitter.

 

But my point is, no station should be moving because the FCC wants to do so for this Broadband plan crapola. But what's going to end up happening, post-auction & repacking. DTV transition round 2 will be an even-longer process. And more TV channels will be succumbed to all of this. Thanks to spectrum speculators, who don't give a damn about the longevity of the broadcast industry.

 

OTA, LocusPoint & NRJ are only there for one thing. Look at this article from February and see how much they have grabbed thus far. Yeah I've been bitching about Sinclair's buying spree. But to me, this is far worst.

 

Again, TMJ made a big mistake selling KMIR to these speculators. Watch NPG Gulf-Cali get the NBC affiliation (after KMIR goes bye-bye and shove it on a LP station, like the CBS affiliation.

[sanewsguy 511]

OTA, LocusPoint & NRJ are only there for one thing. Look at this article from February and see how much they have grabbed thus far. Yeah I've been bitching about Sinclair's buying spree. But to me, this is far worst.

But have you seen the types of stations they've acquired? mostly low-rated ethnic, religious or home shopping stations. They could afford to go away. Now the reason I'd be upset with KMIR, it has news, a major network, a lot of people would be put out of work over this.

 

The other stations, I'm sure (unfortunately) some people would lose their jobs, but the stations are just taking up airspace anyways.

 

I'm sure you wouldn't watch the stations LousPoint, OTA and NRJ own anyways because there's nothing worth watching on those stations anyways.

[Weeters 1916]

I'm not entirely sure the plan would be to shutter these stations post-FCC action. There is still money to be made just dumping the station on a new frequency (or just going cable-only) and selling it. In fact, that would be a wise investment in the event the government doesn't pay any money for the spectrum reallocation. You could still make some money back dumping the station as a cable-only outlet.

[nickp 337]

no idea that Journal Broadcast recently purchased the No. 1 overall rated station in major-market Nashville that is ranked as one of the top CBS affiliates in America that already is producing big-time income. The huge acquisition in Nashville is worth several times more than the combine value of both Palm Springs stations located in the 148th ranked media market.

[CircleSeven 1955]

 

But have you seen the types of stations they've acquired? mostly low-rated ethnic, religious or home shopping stations. They could afford to go away. Now the reason I'd be upset with KMIR, it has news, a major network, a lot of people would be put out of work over this.

 

The other stations, I'm sure (unfortunately) some people would lose their jobs, but the stations are just taking up airspace anyways.

 

I'm sure you wouldn't watch the stations LousPoint, OTA and NRJ own anyways because there's nothing worth watching on those stations anyways.

 

I know what those stations are. NRJ even bought one of KM's stations here in the Chi (WOCH-CA specifically, which hasn't been on-air since consummation, and they aired nothing but ethnic programming). But my point is, they start gobbling up the low-rated, not-too-cared-for stations, to getting these big stations. KVOS, WLWC & now KMIR specifically.

 

I feel no TV station should go away period. Like I said earlier, if the FCC knew that we needed more spectrum for wireless broadband, they would've drew all of that out during the first digital transition. It's just the height of many television stations are now re-maximizing their facilities post-2009 transition that the FCC now place a freeze on, which hurts the consumer. The FCC still haven't acted on WMC petition to move from a really bad channel (VHF 5) to a UHF channel (UHF 17). And also, while some are dumb enough the pay the higher fees, others are ditching cable altogether and going back strictly OTA. That's why, they are now more cord-cutters now, because many can't afford those higher cable rates, thanks to these companies wanting more retransmission consent dough, which make the MVPDs jack the rates up.

 

And hey look y'all. Their major factor of all of this, is to have everyone, even the lower-income folks to get the affordable access to broadband. I'm all for it 100%. What I'm not for is taking more TV channels off the grid as a result. You took 17 channels off the grid in 2009. Why we need to take about 20 channels more? And like that poster said, we don't know if the FCC is going to reimburse broadcasters to after repacking, which will no doubt be inevitable. Some would even go stupid to have two OTA channels sharing the same channel frequency. I don't like that shit one bit. If you own all of those 6mhz & 19.4mbps, its yours period. It's no use to share two HD streams on the same (which it's being done already) when the quality is degrading to both.

 

If the FCC would've done their homework, and least more spectrum space outside of the TV spectrum grid, we wouldn't have to deal with freezing these channel changing petitions or maximizing facility applications. The broadcasters will be facing a double whammy should the auction comes next summer and post-auction, because it will take years to repack and move these channels left and right. It won't be a one day change like February 17 or June 12 of '09, this is going to be prolong process. The LPs would probably have to go bye-bye because they won't have any spot to be move, fearing interference with co-channel adjacents in-market and channel adjecent out-of-market. If they don't have the dough to at least convert to digital by 9/1/15 which is less than 23 months away, they go bye-bye anyway.

 

I strongly thought in 2009, that the reason why they did this digital move was to free-up airspace. Now they want to make the broadcaster even more stressful to have them to move again so you can free-up more. WLS just move from VHF 7 to RF 44 just last year around this time. Anybody can say cable is the best way. But for the folks who don't have cable, or can't afford cable, over-the-air television is their only way to get the emergency information possible. And if they don't have that, they screwed. Those speculator are basically the helpers of the FCC to make sure their Broadband plan goes into their favor. That's why I say, if these broadcasters who want to do the same thing these speculators are doing, they should never broadcast another entity ever again, even if its not over-the-air terrestrial, even if its cable-only or internet stream, they shouldn't broadcast anything ever again.

 

To what sanewsguy point out, yes I wouldn't watch none of that ethnic, revenue frontier or the "God-squad gimme-$$$$" crapola they have on those stations, but its just a MOP = matter of principle. You wipe out the least rated station is one thing. Then if they can do that, do you even that a high-rated independent station would even have a chance? KCNS & KTNC is one thing, what if another speculator try to get KOFY. Granite is probably breathing their last breath now, and probably ready to go lights out, goodnight. If no big broadcaster pick KOFY up, you know where its going to and it will be a great chance this station will go away after auction. FCC can find other spots in the spectrum to pump their broadband, and not use more of the airspace specifically of television to have broadband access. They will be doing more harm than good. Maybe the FCC should examine other options like what I read last month from this article about spectrum reallocation.

 

EDIT: Speaking of all this spectrum talk, the B&C wrote a piece of all the players involved about how to handle these upcoming auctions and anything post auction.

[cg41386 132]

 

Probably forced to pipe it in from KNBC.

 

KESQ is the leading station in Palm Springs correct?

 

Yes.

[TVIntheDesert 183]

I believe if "spectrum speculators" should be found as unfit to hold a broadcast license, shouldn't the same be said about a certain eccentric/egocentric owner of a low-rated independent station who sends his own personal security guard to go after disgruntled former employees? You know who I'm talking about.

[CircleSeven 1955]

Paperwork for KMIR has been posted. $17M is the initial price. OTA agreed to pay Journal more if its involved in the spectrum auction.

 

In addition, in the event (i) Buyer or an Affiliate of Buyer, in its sole

discretion, elects to (A) participate, exchange, contribute or tender all or part of the spectrum

assigned to KMIR or (B enter into a channel sharing arrangement with respect to KMIR and

another broadcast station, in each case, in connection with the voluntary incentive auction of

broadcast television spectrum (the “Incentive Auction”) being conducted by the FCC in its

Notice of Proposed Rulemaking, “Expanding the Economic and Innovation Opportunities of

Spectrum Through Incentive Auctions,” FCC 12-118 (rel. Oct. 2, 2012), proceeding or any

related proceeding, and (ii) Buyer or an Affiliate of Buyer receives proceeds therefrom, then

Buyer shall pay to Journal an additional contingent payment (the “Contingent Payment”)

equal to seven percent (7%) of the Net Profits (as defined below). In the event that Gross

Proceeds (as defined below) are more than 1.3 times the sum of the Station Acquisition Cost

and the Auction Expenses (each as defined below), then the Contingent Payment payable in

accordance with the preceding sentence shall be equal to the greater of seven percent (7%) of

the Net Profits (as defined below) and Seven Hundred and Twenty Three Thousand Dollars

($723,000).

I still think that they did the dummy selling it to these fools. And they know what's going to happen next. Very pitiful.

[montevallomatt 0]

 

I believe if "spectrum speculators" should be found as unfit to hold a broadcast license, shouldn't the same be said about a certain eccentric/egocentric owner of a low-rated independent station who sends his own personal security guard to go after disgruntled former employees? You know who I'm talking about.

 

Sorry, I don't know who you are talking about... could you clue me in?

[Samantha 2896]

OTA Broadcasting, run by Michael Dell (that Dell), is a company whose business model until this acquisition has been to buy up stations on the fringes of major markets (with KTLN and WLWC as examples) with the hope that they will be repaid once the FCC's spectrum repacking/incentive auction occurs next year. By surrendering the spectrum that is valuable in spectrum-starved major markets (WLWC is in the Providence DMA but the aim is Boston; KTLN is in San Francisco; KMIR is fairly close to LA), profit is to be made.

 

But OTA has a CW affiliate and a bunch of Me-TV outlets. This is a little different, as KMIR has been the area's NBC outlet for 45 years.

[TVIntheDesert 183]

 

Sorry, I don't know who you are talking about... could you clue me in?

 

Owner of Detroit Channel 38.

[NewsMaster 226]

 

Owner of Detroit Channel 38.

 

The man who (arguably) single-handedly caused CBS to go to channel 62 in that market.

[GoldenShine9 1513]

I had this thought - with an "absentee" owner, could the station actually try to develop into a quasi-independent with no shots being called from the owner, and maybe that would be beneficial?