Nexstar Media Group, Inc. (NASDAQ:NXST) Q4 2022 Earnings Call Transcript

Perry Sook: Well, I can tell you that the number of inbound inquiries as well as discussions that are going on with team owners the activity is frenetic around here. The — there are lots of discussions. I think our Clippers deal with Steve Ballmer and the Clippers putting a group of games on broadcast exclusively to expose that to the part of the market that is not inside the pay TV universe kind of broke the seal. And I think that other team owners have taken notice of that. There are a lot of conversations going on. I would expect you’ll see us do more deals as time goes on. But I think to a certain extent, people want to see how the RSN plays out and what that means to them and then, therefore, how that influences their behavior going forward. But we have a receptive audience, certainly among NBA owners and NHL owners that see the value of broadcast TV and exposing and distributing their product to a much larger audience than is available in the pay TV universe.

Steven Cahall: Thank you.

Operator: Our next question comes from Dan Kurnos with the Benchmark Company.

Daniel Kurnos: Great. Thanks. Good morning. Perry, maybe just to follow-up on that a little bit. How should we think about your willingness to trade off in kind of prime time sort of programming, like how are we thinking about either from a CPM or a viewership perspective, if you wanted to put stuff on CW sort of that trade-off between sort of traditional programming and sports. And if there’s any way to kind of I don’t know, directionally size the impact of LIV Golf, just so we have a sense of what these kind of deals could be — would be helpful?

Perry Sook: Well, I think our — I guess I stated earlier, our goal is to create more value in the CW. Certainly, sports is one avenue that has never been pursued there before. I can tell you that our first — we’re very pleased with our first weekend of LIV Golf across the first three days from Mayakoba, Mexico. LIV Golf was viewed by over 1.4 million total viewers across both the CW linear network as well as our digital platform, the CW app, compared to the average linear golf game on television year-to-date LIV Golf’s two day average linear viewership was 24% higher than the average. And important for us, the linear broadcast ratings increased 21% from Saturday to Sunday — so all of which is to say those numbers exceeded our expectations.

And most importantly, the affiliates as well as our own stations were thrilled. I know that our affiliates and CW affiliates in the top 10 markets generated about 3x the amount of money that the network generated for this first outing. And so it’s selling very well and I think we’ll continue to grow as we get more into the season and more involved. So I think that sports, I think adding another hour on Sunday night to the prime time schedule, are all things you can expect in the future. And again, we want to make the CW — I mean, it has a distribution on par with the big four. So our job now is to continue to increase the profile, relevance and interest in the programming, offer more varied programming and sports is obviously a big piece of that, that can put us more on par with the other network choices that are out there.

Daniel Kurnos: That’s helpful. And just another one, just on political, I know it’s obviously early for ’24, but I mean you have a really broad platform, and we’ve seen some creative ways that others have kind of attacked it, whether the CTV partnerships or what have you. And you guys obviously own some political specific properties now. So I don’t know how do we yardstick kind of ’24 relative to whatever pro forma 2020 was if you have that number? And what kind of incremental opportunities or channels do you see heading into next year?