Official Press release from Nexstar Broadcasting:
AT&T/DIRECTV BLACKS OUT LOCAL TV STATIONS IN 97 MARKETS ACROSS THE USA ON JULY 4th AFTER REJECTING NEXSTAR OFFERS TO EXTEND ACCESS FOR CONSUMERS TO LEADING LOCAL CONTENT
DIRECTV/AT&T Once Again Holds its Subscribers Hostage Instead of Negotiating in Good Faith and Reaching a Fair Market Rate Agreement with Nexstar, Other Broadcasters and Content Providers
IRVING, Texas, July 5, 2019 – Viewers across the United States have expressed their outrage at AT&T/DIRECTV following their removal of scores of local Nexstar Broadcasting television stations which began on the Fourth of July. For example, as a result of AT&T/DIRECTV’s actions, AT&T/DIRECTV subscribers in Bakersfield, California were unable to receive local Nexstar televised news updates, in both English and Spanish, regarding the large earthquake there.
At present, Hawaii is bracing for severe weather as Hurricane Barbara tracks across the Pacific. Nexstar’s KHON, the number one television station in Honolulu, is providing constant updates on weather models and local conditions. Although it appears Hurricane Barbara will not be a direct hit—torrential rain and severe thunderstorms are expected to begin on Monday and continue for three days. AT&T/DIRECTV serves the majority of the TV households on the Big Island where the storm is expected to be the worst and viewers need KHON for important weather and safety updates. Similarly, a Louisiana viewer of Nexstar’s local stations that is highly concerned with the AT&T/DIRECTV blackout noted, “We in Louisiana are in the middle of hurricane season – WE NEED OUR LOCAL STATION! We pay enough money to have this service – BRING OUR LOCAL STATION BACK!”
Yesterday alone viewers were also denied access to over 530 hours of local news. Consumers are also complaining about missing their favorite network affiliated shows, the Annual Macy’s 4th of July Fireworks event that celebrates the nation as well as over twenty home-town Fourth of July events that Nexstar stations produced specifically for their local markets. This Sunday, July 7, affected AT&T/DIRECTV viewers will be unable to watch the US Women’s National Soccer Team’s historic World Cup finals game, an event which has drawn growing national interest as the success and personalities of team USA seeks their fourth title.
Nexstar has been negotiating in good faith to establish a mutually agreeable contract with AT&T/DIRECTV and has offered AT&T/DIRECTV the same rates it offered to other large distribution partners with whom it completed successful negotiations with in 2019 to date. Over the past 20 months alone, Nexstar has successfully renewed more than 390 distribution agreements with cable providers for the carriage of Nexstar’s stations. Nexstar would like to continue to try to reach a fair agreement with AT&T/DIRECTV and allow its viewers to receive their local stations again.
AT&T/DIRECTV is routinely involved in disputes with content providers and following its 2015 acquisition by AT&T, DIRECTV has dropped or threatened to black out network and local community programming from Viacom, SJL Broadcasting/Lilly Broadcasting, and others. Between May 30, 2019 and June 10, 2019 alone, viewers of at least 20 other non-Nexstar stations (owned by Deerfield Media, GoCom Media of Illinois, Howard Stirk Holdings, Mercury Broadcast Group, MPS Media, Nashville License Holdings, Roberts Media, Second Generation of Iowa and Waitt Broadcasting) lost access to network and local content.
Unfortunately, AT&T/DIRECTV did not accept Nexstar’s offer for an extension which would have allowed viewers in the affected markets to view their favorite network shows, special events, sports, local news and other programming on the Fourth of July and until such time as a new agreement can be reached. Contrary to AT&T’s public statements, Nexstar in no way pulled its stations or asked for their removal from AT&T/DIRECTV’s DIRECTV, U-verse or DIRECTV NOW platforms. Nexstar is also reiterating its offer of an unconditional extension of the existing distribution agreement for 30 days to restore the blackedout programming to viewers and allow the parties to reach a new agreement.
Consumers and viewers affected by AT&T/DIRECTV’s blackout can contact AT&T/DIRECTV directly at 208 South Akard Street, Dallas, TX 75202 and by phone at 855-567-1569 or 210-821-4105. ming.
About Nexstar Broadcasting Group, Inc.
Nexstar Broadcasting Group is a leading diversified media company that leverages localism to bring new services and value to consumers and advertisers through its traditional media, digital and mobile media platforms. Nexstar owns, operates, programs or provides sales and other services to 174 full power television stations and related digital multicast signals reaching 100 markets or nearly 39% of all U.S. television households. Nexstar’s portfolio includes primary affiliates of NBC, CBS, ABC, FOX, MyNetworkTV and The CW. Nexstar’s community portal websites offer additional hyper-local content and verticals for consumers and advertisers, allowing audiences to choose where, when and how they access content while creating new revenue opportunities
This communication 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, Nexstar 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
communication, concerning, among other things, future financial performance, including 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, the ability to service and refinance our outstanding debt, successful integration of acquired television stations and digital businesses (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, volatility in programming costs, the effects of governmental regulation of broadcasting, industry consolidation, technological developments and major world news events. Nexstar undertakes 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 communication 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 Nexstar’s other filings with the Securities and Exchange Commission.
Elizabeth Ryder Joseph Jaffoni, Jennifer Neuman
Executive Vice President & General Counsel JCIR Nexstar Broadcasting Group, Inc. 212/835-8500 or firstname.lastname@example.org
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