Local TV Station Owners Have Reason to Back FCC Chair on Kimmel

Core Viewpoint - The local TV industry is leveraging a controversy surrounding Jimmy Kimmel's comments to gain favor with the Republican-controlled FCC, which is crucial for their merger plans and deregulation efforts [1][2][10]. Group 1: Industry Dynamics - Local station owners, including Nexstar Media Group Inc. and Sinclair Inc., are responding to FCC Chairman Brendan Carr's encouragement to drop Kimmel's show due to its controversial comments [2][3]. - The local TV industry is at a critical juncture, facing challenges from declining cable subscriptions and increasing fees demanded by networks [5]. - Executives believe that consolidation through mergers will help them cut costs and enhance negotiating power with cable operators and networks [6]. Group 2: Regulatory Environment - The industry is advocating for the Trump administration to eliminate regulations that currently limit station ownership, which restricts a single company from owning stations that reach more than 39% of U.S. households [7]. - The FCC, under Chairman Carr, is considering changes that would allow for greater consolidation among broadcasters, potentially easing local ownership restrictions [8]. - Nexstar is pursuing a $6.2 billion acquisition of Tegna Inc., which would enable it to reach 80% of U.S. households, significantly above the current limit [9]. Group 3: Strategic Moves - The decision to remove Kimmel's show is seen as a strategic move by Nexstar to align with its goal of regulatory relief, although the company claims it was made independently [10][11]. - Sinclair is also exploring strategic options, including potential sales or restructuring, to adapt to the changing landscape [11]. - The local TV stations may prefer to replace late-night shows with news or other programming, which could be more cost-effective [13].