Nexstar Broadcasting Group, Inc. (Nasdaq: NXST) announced today that it
has entered into a six-year retransmission consent agreement with Wide
Open West, (WOW!), a leading regional provider of high-speed Internet,
cable and telephone services. The agreement grants WOW! the
non-exclusive right to distribute Nexstar’s
locally produced content, including market-leading local newscasts, and
to carry the both the analog and digital (including high definition)
signals of WTVW, Nexstar’s FOX affiliated
station in Evansville, Indiana. Financial terms of the agreement were
not disclosed.
Perry A. Sook, Chairman, President and Chief Executive Officer of
Nexstar Broadcasting Group, Inc., commented, "Our
agreement with Wow! highlights the industry’s
growing appreciation of the value of the carriage rights for locally
produced content and leading national programming.”
Beginning in 2005, Nexstar led the television broadcast industry by
negotiating retransmission agreements with approximately 150 cable
operators as well as with both direct broadcast satellite providers,
overbuilders (secondary cable providers) and wireless cable providers in
its markets. More recently, Nexstar established a multi-year
retransmission agreement with Verizon to deliver content for its
fast-growing fiber-optic powered FiOS TV service.
Mr. Sook added, "Our first round of
retransmission consent agreements was concluded early in 2006 resulting
in significant incremental revenue. In 2007 retransmission consent
revenue grew by 25% to $17.2 million compared with 2006. With 47% of the
revenue related to the initial agreements to be re-negotiated in 2008
and 80% of the revenue related to those agreements to be re-negotiated
before year-end 2009, we expect substantial growth in retransmission
revenue.” About Nexstar Broadcasting Group, Inc.
Nexstar Broadcasting Group currently owns, operates, programs or
provides sales and other services to 50 television stations in 29
markets in the states of Illinois, Indiana, Maryland, Missouri, Montana,
Texas, Pennsylvania, Louisiana, Arkansas, Alabama and New York. Nexstar’s
television station group includes affiliates of NBC, CBS, ABC, FOX,
MyNetworkTV and The CW and reaches approximately 8.25% of all U.S.
television households.
Forward-Looking Statements
This news release includes forward-looking statements. We have based
these forward-looking statements on our current expectations and
projections about future events. Forward-looking statements include
information preceded by, followed by, or that includes the words
"guidance," "believes," "expects," "anticipates," "could," or similar
expressions. For these statements, the Company claims the protection of
the safe harbor for forward-looking statements contained in the Private
Securities Litigation Reform Act of 1995. The forward-looking statements
contained in this news release, concerning, among other things, changes
in net revenue, cash flow and operating expenses, involve risks and
uncertainties, and are subject to change based on various important
factors, including the impact of changes in national and regional
economies, our ability to service and refinance our outstanding debt,
successful integration of acquired television stations (including
achievement of synergies and cost reductions), pricing fluctuations in
local and national advertising, future regulatory actions and conditions
in the television stations' operating areas, competition from others in
the broadcast television markets served by the Company, volatility in
programming costs, the effects of governmental regulation of
broadcasting, industry consolidation, technological developments and
major world news events. Unless required by law, we undertake no
obligation to update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise. In light of
these risks, uncertainties and assumptions, the forward-looking events
discussed in this news release might not occur. You should not place
undue reliance on these forward-looking statements, which speak only as
of the date of this release. For more details on factors that could
affect these expectations, please see our filings with the Securities
and Exchange Commission.
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