Nexstar's Bold Move: Why America's Largest Local Media Giant Pulled Kimmel Off Air

In a move that sent shockwaves through the television industry, Nexstar Media Group, America’s undisputed titan of local broadcasting, abruptly pulled the plug on Jimmy Kimmel Live! from its ABC-affiliated stations. This dramatic decision left millions of viewers in the dark, highlighting the escalating tensions and high-stakes negotiations that are rapidly reshaping the future of television.

The controversy stems from Nexstar’s accusations against Disney, which owns ABC.

Nexstar alleges that Disney sought to bundle the local ABC affiliates with its Disney+ streaming service without offering additional compensation for the linear broadcast. For Nexstar, this wasn’t just about Jimmy Kimmel; it was a fundamental battle for the financial viability of local journalism and the traditional broadcast model.

The company stated its commitment to protecting its local stations and ensuring fair compensation for the valuable content they provide, particularly their high-rated local news programming.

But who exactly is Nexstar Media Group, and why does its every move reverberate across the airwaves? Headquartered in Irving, Texas, Nexstar has quietly, yet aggressively, grown into the nation's largest owner of local television stations.

Its vast empire now encompasses an astonishing 199 stations across 116 markets, including affiliates for all the major networks: ABC, CBS, NBC, and Fox. This makes Nexstar an unparalleled gatekeeper of local news and entertainment for a significant portion of the American public.

At the helm of this formidable media conglomerate is its visionary founder, chairman, and CEO, Perry Sook.

Sook, a seasoned broadcast executive, launched Nexstar in 1996 with a single station. His strategy has been nothing short of brilliant and relentless: identify struggling or undervalued local stations, acquire them, streamline operations, often by cutting costs, and then leverage their local news dominance to command higher retransmission fees from cable and satellite providers.

This calculated approach has transformed Nexstar from a fledgling startup into a financial powerhouse, generating $5.2 billion in revenue and $926 million in net income in 2022.

Sook’s acquisitive nature is legendary in the industry. He has consistently pursued and successfully executed mega-mergers, including the significant acquisitions of Media General and Tribune Media.

These strategic takeovers not only expanded Nexstar's footprint but solidified its position as the dominant force in local broadcasting. The company’s focus on local news isn't merely a public service; it's a shrewd business decision. Local news commands higher margins and provides a critical service that streaming platforms cannot easily replicate, making it an invaluable asset in retransmission fee negotiations and attracting local advertising dollars.

The Jimmy Kimmel Live! incident serves as a stark reminder of the immense power wielded by entities like Nexstar in today’s fragmented media landscape.

As traditional cable and satellite subscriptions decline, the battle for content distribution and fair compensation intensifies. Broadcasters are fighting to protect their revenue streams from network owners who are increasingly prioritizing their own direct-to-consumer streaming services. This ongoing tug-of-war directly impacts what millions of Americans can watch, when they can watch it, and ultimately, the viability of local journalism.

Nexstar's bold stance against Disney is more than just a carriage dispute; it's a declaration.

It underscores a fundamental shift where local station groups, once seen as mere conduits for national content, are asserting their formidable influence. As Sook and Nexstar continue to navigate these turbulent waters, their actions will undoubtedly shape the future of television, determining how viewers access their favorite shows and, critically, how local news—the lifeblood of communities—will survive and thrive in an ever-evolving digital world.