Where Local News Is Always "On"

Written By Tim Hanlon

We've spent a ton of time so far highlighting the various challenges and opportunities for local stations in their various efforts to program fledgling linear FAST streaming channel offerings - while shining a spotlight on the news content that disproportionately powers them.  

Of course, finding those individual channels amidst the hundreds of choices available across the fragmented CTV streaming landscape is vexing for even the most dedicated of viewers. And downloading individual stations’ apps, while potentially more convenient for mobile consumption, doesn't always neatly translate (or "cast") well for big-screen viewing.

Although a hefty dollop of FAST/AVOD aggregators (e.g., Roku Channel, Tubi, LocalNow, Amazon's FireTV, etc.) do their best to corral local streams into their own dedicated menu sections, individual TV channel brands aren't necessarily guaranteed to be included, depending on how station group distribution deals are structured. (Viewers just don't understand!)

One solution to this hit-or-miss availability dynamic has been to aggregate local station feeds into destination-worthy "hubs of their own" - where competing stations across both the network owned-and-operated (O&O) and affiliated landscape join hands to provide viewers an attempt at a one-stop shop for all of their local news needs, regardless of market. 

Syncbak's Zeam (fka VUit and SBTV) is a great example, featuring stations from mostly CBS, Gray, Morgan Murphy, and smaller owners, while Haystack News draws out its own set of station relationships to power its market-curated approach.

The largest local news hub (275 TV station partners in over 165 U.S. markets), however, is also its oldest: NewsON - now owned and operated by Sinclair Broadcasting. We sat down with the service's VP/General Manager Ron Stitt to find out how it all works:

TVREV: How did NewsON get started, how has it evolved to what it looks like today?

Ron Stitt, VP/General Manager, NewsON: The initiative began around 2015, spearheaded by Roger Keating at Hearst. He envisioned consolidating local television news into a single product, initially conceived for mobile platforms. Later, it evolved to include CTV (Connected TV). This endeavor became a joint venture involving five major groups. They pooled resources, developed back-end infrastructure, formulated business strategies, and created mobile products. Despite its potential, commercial traction proved challenging at that time. Sinclair eventually acquired the project to preserve the extensive groundwork laid by the collaboration.

The underlying philosophy recognized the industry's need to compete not only locally but also in the digital realm against formidable adversaries like major media and platform companies. The fragmented nature of the local television news industry hindered its ability to compete effectively. Sinclair's acquisition aimed to address this by positioning the initiative to thrive in the evolving landscape, particularly as CTV gained momentum.

Initially conceived as mobile-centric, the project pivoted towards a CTV-first approach, aligning with the growing prominence of CTV platforms such as Roku. Nevertheless, there's a renewed effort to bolster the mobile aspect, driven by a desire for a cross-platform perspective. While CTV presents significant opportunities, recognizing the value of engaging users across different platforms remains crucial.

The project has seen steady growth in station count, audience metrics, and revenue. Recent enhancements include the rollout of advanced mobile apps and the imminent launch of new CTV apps. Presently, the project encompasses around 250 stations, ensuring broad coverage across the US, exceeding 90%. Major contributors include Sinclair, Tegna, Cox, Hearst, CBS, Hubbard, and several smaller groups and individual stations. This comprehensive approach aims to solidify the project's relevance both nationally and locally, within the dynamic media landscape.

TVREV: Which station groups elude you?

Stitt: We'd love to have Nexstar. Gray was a partner, but they're primarily focused on their own initiatives. They do have a stake in Zeam, so a lot of their attention is directed there. However, I will say, one of our key insights is that coverage outweighs sheer quantity. While having every station in every market would be ideal, having one or two stations can suffice for our user base. When users seek news from a specific market and find that we lack stations from certain groups, they tend to gravitate towards what we do offer. Therefore, coverage is currently the paramount consideration, even more so than the number of stations.

TVREV: Where is NewsON available and what will viewers they see there?

Stitt: We see it as the go-to destination for local television news in the OTT and CTV world.  Our primary competitors in the native apps domain would be Haystack News and LocalNow. However, what sets us apart is our exclusive focus on local television news.

Haystack aggregates news from various sources, including national and topic-driven content alongside local news. Similarly, LocalNow offers a mix of entertainment and news. In contrast, for individuals solely interested in local news, our platform stands out. Our core offering includes the ability to watch live local newscasts as they air and access previous broadcasts on-demand for 48 hours. Surprisingly, VOD newscasts enjoy significant popularity, serving viewers who miss live broadcasts but wish to catch up at their convenience.

Additionally, we provide short-form news clips from partner stations and have introduced always-on FAST channels over the past year and a half.  Another unique feature of NewsON is the capability to access local news from any city across the US, irrespective of one's location.

This flexibility attracts out-of-market viewers, particularly during breaking news events like hurricanes.  Local stations often outshine national networks in covering significant local events, highlighting the strength of our platform and the broader local television news industry. While we've made strides, there's still untapped potential in leveraging and maximizing the impact of local news coverage.

Our primary focus is strictly on local news, which sets us apart from other platforms. This dedication to local news is our key differentiator and unique value proposition. We cater to users who are avid fans of super-local news or those interested in watching out-of-market local news. As far as I'm aware, we're the only platform offering VOD newscasts, a highly popular feature among our users.

Currently, with a few exceptions, our platform isn't centered around linear or EPG- (Electronic Program Guide-) driven content. Instead, each station has its own page where users can access live newscasts when available, tune into always-on channels, and watch previous newscasts and short-form clips at their convenience. This non-linear approach is what truly differentiates NewsON and aligns with the preferences of our target audience.

TVREV: What is NewsON's business model then?

Stitt:  Our business model is strictly based on ad sales, through a revenue-sharing system. It's crucial to understand that Sinclair acquired the platform to ensure its continuity, maintaining its operational structure similar to when it operated as a consortium or joint venture. All stations, including Sinclair's, are treated equally on the platform without any favoritism.

Regarding revenue sources, our approach has evolved over time. Initially, we  relied heavily on open programmatic advertising. While that's still a part of our sales strategy, we've also expanded to include direct sales, direct programmatic deals, and PMP (Private Marketplace) deals.  We've invested in building a direct sales force and prioritizing PMP deals, which ensures a more sustainable revenue stream moving forward. Additionally, we're exploring opportunities to replicate the success of unwired networks, a concept Sinclair employs for its own stations, to regionalize and target ads more effectively.

Ultimately, our goal is to offer advertisers the ability to purchase highly targeted and localized ads. By leveraging various ad sales channels and strategies, we aim to provide advertisers with flexibility and efficiency in reaching their desired audiences at a local level.  From an advertiser perspective, we're, we're national with the ability to target locally, I would say. And they take advantage of those capabilities variously depending on what their priorities are, what sort of targeting they want to do, geographic or otherwise.

TVREV: How do station newsrooms perceive this platform? It's widely acknowledged that many newsrooms are understaffed, with staff often facing challenges in terms of compensation and high turnover rates. However, it appears that integrating newscasts into your system requires minimal additional effort. Is there also the option for stations to augment their content offerings beyond just newscasts?

Stitt: We've had some instances where stations have produced specials or related content. While we aim to maintain a focus on news or news-adjacent content, there have been exceptions. However, integrating this content doesn't necessitate any additional workflow once all the feeds are set up.

Over time, we've seen increased editorial coordination and communication with partner stations. They inform us about significant events in their market, allowing us to feature them on our platform. We've received positive feedback from newsrooms when a major story in their market garners significant attention through our platform. This broader exposure resonates positively with newsroom staff.

We actively monitor nationwide events and strive to drive traffic to markets and stations through features such as breaking news banners on our platform and push alerts. Additionally, we're moving towards repurposing content in ways that align more with an OTT-first approach. This shift is evident in our new mobile apps and will extend to our CTV apps as they roll out.

We have a dedicated content creator who hosts and produces short-form clips daily. These clips are designed to foster engagement and community interaction, drawing from content originally produced by TV stations but repurposed in a new format. While this approach involves derivative content, it's not a direct broadcast feed. We collaborate closely with our partners, ensuring that content usage aligns with their expectations and standards.

Building trust with our partners has been a priority over the years, and as a result, we're increasingly exploring opportunities for creative content approaches. This evolving landscape encourages innovation, and we're committed to exploring new avenues to enhance the viewer experience

In my opinion, as we move forward, the content will become less derivative of traditional broadcast. There's a strong focus on multi-platform content behind the scenes, acknowledging the diverse audiences and demographics. Developing such content is an expensive endeavor and requires trial and error to determine what resonates with viewers.  Each broadcast group is approaching it differently, and determining the optimal mix of content topics and production methods remains a work in progress for all involved. However, this experimentation is crucial as we navigate the evolving landscape of multi-platform content delivery.

TVREV: What have you and your broadcast partners learned about what's "working" with NewsON, and how it might evolve in the future?

Stitt: The original vision behind NewsON was to unify and leverage the collective strength of local television news outlets. The primary advantage of such consolidation is scale. In the digital media landscape, scale is paramount. Without sufficient scale, platforms struggle to gain traction, rise to the top of rankings, or attract national advertisers. NewsON serves as a vehicle for local television news to achieve this much-needed scale.

While many stations have developed their native apps and are exploring FAST channels, there's still a sense that something is missing in terms of elevating local television news to its full potential. Contrary to the belief that younger demographics are disinterested in local news, my experience suggests otherwise. Content produced by local TV stations can often go viral, debunking the myth that younger audiences are not engaged. However, the challenge lies in capturing this audience collectively, as viewing habits continue to evolve.

Local news remains one of the most valuable content categories across all demographics. However, it's fragmented across numerous ownership groups and hundreds of TV stations, each with its own technology infrastructure and operational challenges.

As an industry, there's a pressing need to rethink how we package and distribute local news content collaboratively to achieve scale. Failure to address this challenge poses an existential threat, but it also presents a tremendous opportunity for innovation and growth. By working together to unlock the full potential of local television news, we can capitalize on the immense value it offers to audiences and advertisers alike.

(Transcript edited for clarity and brevity)

Tim Hanlon

Tim Hanlon is the Founder & CEO of the Chicago-based Vertere Group, LLC – a boutique strategic consulting and advisory firm focused on helping today’s most forward-leaning media companies, brands, entrepreneurs, and investors benefit from rapidly changing technological advances in marketing, media and consumer communications.

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