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Boston TV crisis: WHDH and WNEU


TheRolyPoly

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I know there not buying any stations period, but to the person I was just asking their opinion, and was being sarcastic as well too. You came off as rude, and again we know Disney not looking for any stations. You might want to take a deep breath dude.

You are right Disney CEO Bob Iger is not want to buy ABC stations,

#1. He want to save the money and cheaper syndicated program s

or

#2 ABC-Owned Stations will or not swap the station in smaller market (KSFN-TV)?

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You are right Disney CEO Bob Iger is not want to buy ABC stations,

#1. He want to save the money and cheaper syndicated program s

or

#2 ABC-Owned Stations will or not swap the station in smaller market (KSFN-TV)?

Stations like WTVD and KSFN are rooted in the CapCities era. There is quite a bit of sentimentality towards retaining those stations; heck, WKBW and WXYZ would have become ABC O&Os if not due to the 1986-era ownership caps (plus the waiver CapCities-ABC had to request for WPVI).

 

Disney is a multi-billion dollar film and entertainment conglomerate that has expanded in their core business via the acquisitions of Pixar, Marvel and LucasFilm (Disney even sold off the ABC Radio networks and station group to pay for Pixar, a pretty shrewd trade if you ask me). ABC is a valuable tool for cross-promotions and synergies that is not a dominant force, but not a neglected one, either. For those reasons, they don't feel any need to buy any more stations... because honestly, Disney easily could have sent multiple Brinks trucks down to Hunt Valley when the Allbritton-S!nclair deal was in DOJ purgatory, just for the purposes of getting WJLA. Any other network - even CBS - would have done just that.

 

Now, Disney is going to have some major problems with their 80% stake in ESPN (remember that Hearst still owns 20%) what with the cord-cutting and the collapse of the basic cable bundle setup. Which is why they've been buying into Marvel and Star Wars, so as to help weather the storm.

People keep talking about transmission issues of WNEU, so I'll ask my question again since it wasn't answered the first time...is it unreasonable/too expensive for NBC just to build a new, more powerful transmitter or upgrade the existing one to boost its range?

People keep talking about transmission issues of WNEU, so I'll ask my question again since it wasn't answered the first time...is it unreasonable/too expensive for NBC just to build a new, more powerful transmitter or upgrade the existing one to boost its range?

 

The issue is that WNEU is licensed to Merrimack, NH, and the FCC requires the transmitter to be within a certain distance (20 Miles?) of the City of License while covering the City of License. Legally, they may not be permitted to move the transmitter any farther.

People keep talking about transmission issues of WNEU, so I'll ask my question again since it wasn't answered the first time...is it unreasonable/too expensive for NBC just to build a new, more powerful transmitter or upgrade the existing one to boost its range?

The FCC has put a freeze on building new full-power transmitters and power boosts. Therefore, WNEU is stuck broadcasting at 80kw from NH.

The FCC has put a freeze on building new full-power transmitters and power boosts. Therefore, WNEU is stuck broadcasting at 80kw from NH.

 

And in a post-repacking landscape, a full-power move may be impossible into a major market like Boston.

So in other words we are looking at a 'CBS DETROIT' situation in Boston..where if WHDH gets stripped of its NBC affiliation , NBC may not have a choice in where they go..

 

Which then begs the question: Why in the world would NBC even play this game of chicken with Ansin?

 

I only see two scenarios if NBC is serious: Negotiate for WMUR with Hearst, or convince Nielsen to bring Bristol County back into the Boston DMA proper and make a play for WLNE. I bet Citadel would be fine unloading WLNE to anyone who will make a fair offer.

Maria and Pete didn't have no-compete clauses? I find that very hard to believe. Typically it'd be at least 6 months or maybe even a year before they could resurface in the same market.

Last I heard, MA does not allow no-compete clauses. Thus there would be no waiting.

Non-competes cannot be enforced in Massachusetts

They could still have NCAs. MA laws can be easily worked around for national companies. The NCA is written so that it is governed by the laws of governed by the laws of the parent company's home jurisdiction. And, contains provisions consenting to jurisdiction and venue in the parent company's home jurisdiction. I've seen plenty of NCAs with language like this and have signed a few myself.

 

I bet this would not happen if Boston had an NBC O&O: http://www.bostonglobe.com/business/2015/12/22/copley-square-viewing-nhl-winter-classic-canceled-over-broadcast-rights-dispute/gvnkC93utUxLBNCDk6jBLP/story.html

 

NBC will not grant the City of Boston a viewing license to showcase the NHL Winter Classic, being played in suburban Foxboro, in Boston's Copley Square.

I'd gladly take that bet. This has little to due with NBC and would likely still happen if they had an O&O in Boston. You can pin most of the blame on the NHL. In a one-sentence joint statement in response to inquiries from the Globe, the NHL and NBC said that “public viewing gatherings for nationally televised regular-season games are not permissible under NHL media-rights policies.”

 

This has happened before...yes, even in O&O markets...so, it's not unique.

 

If this goes through....it is an epic shell game of vertical integration. Doing such a thing and actually going through with it could spell the future of broadcasting as we know it.

 

Comcast has ALL of the cards....a network, a station AND a dominant pay tv platform. Now if they make it impossible for rival systems to carry NBC, then that's a huge problem.

I guess I must be the minority. But, if they didn't pull their NBC O&O's off other providers in other "Comcast Markets" (Philadelphia, et. al) I don't see why they'd start in Boston.

They would be required to divest WNEU prior to closing on the duopoly. The FCC isn't going to let NBC own three full power stations in one market.

 

 

More reason why Ansin holds all the cards here.

 

I think everyone is (or will be) misunderstanding Weeters' salient information here. NBC simply cannot buy both WHDH and WLVI until they completely unload WNEU. Now, everyone's saying they'll give it up in the upcoming spectrum auction. But how long will the auction last? Last I saw, it's merely scheduled to begin next March 29. The end of the auction seems to be open-ended. So, if NBC's hellbent on cashing in WNEU for auction monies, they'll have to hold onto it till the cows come home, and who knows how far into the future that will actually be.

 

 

For all those demanding NBC do something and do it now, you're pretty much forcing them into either selling off WNEU for cheap or simply handing in the license to the FCC for nothing, then hoping they can work out a swell deal with Ed Ansin.

 

 

In a nutshell, if NBC wants WHDH, they'll have to either spend two boatloads of cash now, or wait indefinitely to spend slightly less than two boatloads of cash later.

 

I disagree that owning WNEU is an impediment to acquiring both WHDH/WLVI. They could ask for a temporary waiver from the FCC in order to close the transaction. Of course, said waiver would be conditioned divesting one of the licenses. They could hold one of the licenses separate either in trust or via third party pending divesture. And, They could take offer to take one of the licenses silent upon closing as well. Plenty of examples of this happening or, being proposed in recent history (see: KASW, KNIN and WAGT.) So, It's more of a speed bump rather than a brick wall as far as I see it.

 

 

I was going to say if Comcast really wanted to keep WNEU (either as Telemundo or Satellite) maybe they could go the WCBS/WLNY root? Where CBS said the WLNY signal doesn't reach the population.

 

The signal contour and it's failure to reach NYC had to due with TV/Radio cross-ownership rules. So, CBS didn't have to divest one of their radio properties. But, WLNY still counts as a duopoly in the NYC market...they didn't get a freebee.

 

 

Also, They (or, anyone else) would have a hard time getting a "satellite station wavier." First, the rules for a "satellite station waiver" are similar to the "failing station waiver" rules. I think they (or, anyone else) would have a hard time pleading that WNEU couldn't operate as a stand-alone station considering it's held it's own all these years.

 

 

People keep talking about transmission issues of WNEU, so I'll ask my question again since it wasn't answered the first time...is it unreasonable/too expensive for NBC just to build a new, more powerful transmitter or upgrade the existing one to boost its range?

 

With the license freeze in place right now they cannot apply to upgrade, move or otherwise change WNEU's signal. So, they are stuck with what they have right now. The only way they could "improve/upgrade" WNEU's signal right now is to somehow obtain/acquire another license in the market either full-power or low-power and use that as a means to "improve/upgrade" WNEU's coverage

 

 

For all we know, NBC might just re-up with WHDH and make the affiliation agreement stronger. NBC seems to only be using WNEU/NECN (for now) as a scare tactic to get Ansin in line come 2017.

 

Honestly, I think that ship has sailed. I could be totally wrong but, based on everything to date I think NBC is determined to have an O&O in Boston at this point. Whether that is WHDH or WNEU, I don't know.

An interview with Ed Ansin in today's Boston Globe confirms the details: http://www.bostonglobe.com/business/2015/12/22/ansin-owner-whdh-accuses-nbc-playing-hardball-with-channel-negotiations/o9giEDI4eYIoPeuzRbw8DN/story.html

 

 

I have no doubt that NBC will move to WNEU. NBC will need to address signal penetration, however.

 

 

WWDP, a small station assigned to Norwell, a suburban community south of Boston, miraculously enforced must-carry on their RF channel 10 (rather than virtual 46). The station was owned by NBC and used for its ShopNBC outlet. Whether NBC buys the station, or leases it as a repeater for WNEU, it addresses the signal issue. That's major hurdle one.

 

 

NBC owns New England Cable News and Comcast SportsNet New England, which provides a full news department.

 

 

The final piece of the puzzle is syndicated programming. Unless NBC Distribution's contractual agreements also end in December 2016, this will initially be a problem.

 

 

Can Boston support an additional television news outlet? Personally, I don't think so. There is only so much of the pie to go around. But does that matter? No.

 

 

I think you pretty much hit on the only two remaining hurdles...acquiring syndicated programming and the signal reach.

 

 

First, I think there is enough "churn" in the syndicated market that if they truly have made their decision to move NBC to WNEU that filling out the schedule shouldn't be an issue. It might not great at the outset. But, whatever they put together should be serviceable.

 

 

WRT, to the signal reach. I do think that is a big hurdle. However, there are many ways they could remedy that. Exempting NBC acquiring WHDH(/WLVI) outright for the moment. As noted they could acquire another full power outlet in the market, like WWDP. Likewise, they could acquire another low power outlet in the market, like WTMU. They could also lease space on another full power or low power outlet. And, here is a thought what about a license swap? Say for example between WWDP and WNEU. NBC gets a signal that covers Boston proper. And, Evine gets a signal that (at least based on the opening bid prices) is worth more should they be looking to leave the air. If not, they still have full must carry rights. Again, it's a big hurdle but, I don't think it's insurmountable.

 

 

I'd love to be able to be happy in saying that I was right and that my sources were on point - however, this is a pretty sad situation... Not only is Boston looking at the inevitable demise of two television stations, but there are a few hundred jobs at stake.

 

 

The FCC put WHDH's value at $500m+ for the incentive auction, around the same for WLVI - so for NBC to say "here's $200m, take it or we're leaving" is a huge slap in the face, and a clear sign they are moving forward quickly.

 

 

And for Ed Ansin to publicly say he is willing to sell for the right price... He knows a lot more than he is saying.

 

Agreed. I think it's a Hail Mary by Ed. Quite frankly I wouldn't be shocked to learn that NBC has "moved on" from purchasing WHDH "full steam ahead" with their "plan B" at this point. Not saying I agree with that but, I wouldn't be shocked.

 

 

NBC has made a lot of moves over the last couple of years that were seemingly building to this. They moved NECN to the O&O division. They brought management of WNEU back "in house", ending the JSA/SSA with ZGS. They have invested heavily in upgrading NECN's facilities, including launching news on Telemundo Boston.

 

 

At this point NBC doesn't need WHDH's building. And, how much is WHDH worth without NBC programming? So, I'm not surprised NBC made a "low ball" offer.

 

 

And, it's slightly related but, I think The CW affiliation is headed to WSBK next fall. I think Ed knows it too.

Another ignorant question, why did they put a freeze and how long does it last?

It's in place due to the spectrum auction. Presumably it will be lifted some time after the auction.

 

And probably after the repacking is all set and done.

Wow, WHDH had a contract term with NBC for about 22 years (August 10,1994 - January 1,2017). From what I've read contracts are 5 years max.

 

I think that's a misinterpretation of the facts. The contract originates from 1994 with renewals of the original agreement along the way (i.e., very little changes from time period to time period.

Would Sunbeam even be able to run both WHDH and WLVI as independents, or would they simply shutter WLVI and run only WHDH?

 

It'd be supremely ironic if NBC ends up buying just WLVI from Ansin and making that station their O&O.

I think that's a misinterpretation of the facts. The contract originates from 1994 with renewals of the original agreement along the way (i.e., very little changes from time period to time period.

 

Most of contracts I've seen on the FCC website just list the most recent renewal period.

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