Despite Carriage Dispute Keeping Its CBS Stations Off Fubo TV, Nexstar President Tom Carter Expects Bundle Revenue To Keep Flowing: “We Do Not See A Cliff”
08.03.2023 - 01:57
/ deadline.com
Despite an impasse between Paramount Global and FuboTV, which has kept Nexstar stations off the air for weeks, Nexstar President and COO Tom Carter has a relatively upbeat outlook on pay-TV’s future.
“We are projecting subscriber attrition,” he said, with recent gains on internet-delivered bundles like Fubo, YouTube TV, Hulu + Live TV and others failing to offset deeper declines in traditional cable and satellite. “But make no mistake about it — we do not see a cliff. We’re not at a precipice here, or at a point in time where we’re at an inflection point.”
Carter made the comments in an appearance with Nexstar CFO Lee Ann Gliha at the Morgan Stanley Technology, Media and Telecom Conference.
Rather than a cliff or inflection point, Carter says, Nexstar expects more of a plateau. The company, which owns the largest collection of U.S. TV stations as well as national networks like The CW and NewsNation, has research suggesting about 75% of people older than 45 still have pay-TV subscriptions. “We think that’s sticky for at least the foreseeable future,” Carter said.
While any blackout is not ideal, Carter conceded, the stakes in the Fubo-CBS tangle involve “a relatively minor amount of money.” Virtual MVPDs like Fubo account for less than 10% of overall distribution revenue at Nexstar, which in turn is about half of total company revenue, which reached $5.2 billion in 2022.
Fubo, which ended 2022 with 1.445 million subscribers in the U.S., has opted to furnish its customers with the national CBS feed, but local news and other market-specific offerings remain in the dark pending a breakthrough in talks.
Station owners like Nexstar and others have said they feel unfairly disadvantaged by the contractual right of network