Is Nexstar Dealing Dirty?

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As Nexstar Media Group, the nation's largest owner of local television stations, approaches a contract deadline with Verizon Fios TV, a consumer advocacy group is accusing the media giant of threatening a blackout to extract higher fees.

The American Television Alliance (ATVA) publicly criticized Nexstar, framing the dispute as a profit grab that could leave thousands of consumers with a black screen instead of their local programming.

"As families and friends gather to watch Sunday Football, Big Broadcasters are preparing to pull the plug on thousands of pay-TV customers," said ATVA spokesman Hunter Wilson. "Nexstar Media Group is currently demanding exorbitant retransmission consent fee hikes, using a potential television blackout as ‘deal leverage.’ Clearly, they are more interested in extracting huge profits from pay-TV consumers than giving people the programming they’re already paying for.”

The advocacy group's statement comes as Nexstar's contract with Verizon is set to expire this Friday. Verizon confirmed on Tuesday that the companies have been unable to reach an agreement, specifically over the price increases Nexstar has demanded.

"Unfortunately, we simply cannot agree to the significant price increases they have asked for to date," Verizon said in a Tuesday statement. The company stressed that "The rising cost of programming is the single biggest factor in higher TV bills and we are fighting to keep prices reasonable for you."

If an agreement is not reached by the deadline, an estimated 2.6 million Verizon customers could lose access to the channels in 10 markets, including major metropolitan areas like New York City, Philadelphia, and Washington, D.C. The channels affected are primarily network affiliates (ABC, CBS, NBC, FOX, CW) and include:

  • Providence, RI: WPRI (CBS), WVBT (FOX)

  • New York, NY: WPIX (CW)

  • Buffalo, NY: WIVB (CBS), WNLO (CW)

  • Syracuse, NY: WSYR (ABC)

  • Albany, NY: WTEN (ABC)

  • Harrisburg, PA: WHTM (ABC)

  • Philadelphia, PA: WPHL (CW)

  • Washington, D.C.: WDCW (CW), WDVM (DC News Now)

  • Richmond, VA: WRIC (ABC)

  • Norfolk, VA: WAVY (NBC), WVBT (FOX)

  • The national news channel NewsNation is also included.

While a blackout would be impactful, Verizon noted that it would not be "especially widespread" across the country,largely because the company has scaled back its marketing of the Fios TV service.

For its part, Nexstar, which owns hundreds of stations across the U.S., confirmed the discussions. "We are in active discussions on a new agreement," said Gary Weitman, Nexstar’s EVP and Chief Communications Officer.

Now, imagine if Nexstar has 80% of the country if the Tegna deal goes through. If they're throwing their weight around now, what about then?