Nexstar's Strategic Gambit: Can Local TV Thrive in a Streaming Era?

Nexstar Media Group's decision to continue preempting Jimmy Kimmel Live! on its ABC affiliates, despite Disney's resumption of the show's production, underscores a pivotal moment for traditional media in a streaming-dominated landscape. By prioritizing local news and community-focused programming over national syndicated content, Nexstar is signaling a strategic recalibration that reflects broader industry tensions between centralized network power and decentralized affiliate autonomy. This move, which affects 25% of U.S. households, raises critical questions about the long-term viability of local TV in an era where streaming platforms increasingly dictate content consumption patternsTV Viewing Statistics 2025 | TV Consumption Trends^[1].

The Jimmy Kimmel Preemption: A Test of Power and Values

Nexstar and Sinclair Broadcast Group's preemptive scheduling of Jimmy Kimmel Live!—described as “ill-timed and insensitive” by Nexstar—highlights the growing influence of local stations in curating content that aligns with their regional audiences' sensibilitiesTV Viewing Statistics 2025 | TV Consumption Trends^[1]. This decision occurs amid Nexstar's $6.2 billion merger with Tegna, a deal that would create the largest local TV station group in the U.S. and amplify its leverage in negotiations with networks like ABC. The preemption also reflects a broader industry trend: as streaming platforms offer more flexible and on-demand content, local TV stations are doubling down on hyper-local relevance to retain viewership. According to a report by Politico, Nexstar's emphasis on local news aligns with its strategy to differentiate itself from national programming, which faces declining engagement among older demographicsNexstar, joining Sinclair, will preempt Jimmy Kimmel’s ... - POLITICO^[3].

However, this approach carries risks. By sidestepping high-profile national shows, Nexstar may alienate younger viewers who increasingly rely on streaming services for entertainment. Data from The Global Statistics reveals that streaming platforms now account for 43% of global TV viewing time, with younger audiences (ages 16–24) spending half their TV time on digital platformsTV Viewing Statistics 2025 | TV Consumption Trends^[1]. Nexstar's ability to balance local relevance with national appeal will be critical to its long-term success.

Industry Trends: The Dual Realities of Traditional TV and Streaming

The local TV industry's financial health remains a mixed bag. While traditional linear TV still commands 57% of global viewing time, its revenue streams are under pressure. S&P Global Market Intelligence projects a 9.3% decline in U.S. broadcast TV and radio advertising revenue in 2025, driven by cord-cutting and a non-election, non-Olympic yearStudy: Total U.S. TV Station Revenue To Decline in 2025^[4]. In contrast, streaming platforms are projected to grow at a compound annual rate of 6.1% through 2030, with U.S. OTT video revenue expected to reach $112.7 billion by 2029PwC: Price hikes will help streaming revenue reach …^[5].

Yet traditional TV retains unique advantages. For instance, local news remains a cornerstone of audience retention, particularly among older demographics. A 2025 study found that TV ads are the primary source of brand discovery for viewers aged 55–64, a demographic that still spends over two-thirds of their TV time on linear broadcastsTV Viewing Statistics 2025 | TV Consumption Trends^[1]. Nexstar's focus on local news thus taps into a durable demand for real-time, community-specific content—a niche that streaming platforms, with their global libraries, struggle to replicate.

Strategic Adaptation: Hybrid Models and Data-Driven Innovation

To remain competitive, Nexstar and other local TV operators are adopting hybrid strategies that blend linear broadcasting with digital delivery. For example, station groups are aggregating their channels into OTT platforms and leveraging technologies like Automatic Content Recognition (ACR) to track cross-platform audience behaviorCoalition Group Seek Ways To Improve Local TV In An …^[6]. These innovations enable more precise ad targeting and measurement, addressing a key weakness of traditional TV advertising.

Nexstar's merger with Tegna could accelerate this transition. By consolidating resources, the combined entity could invest in advanced data analytics and multi-screen attribution tools, enhancing its ability to compete with streaming platforms for advertiser dollars. However, regulatory hurdles—such as FCC scrutiny of the merger—remain a wildcardTV Viewing Statistics 2025 | TV Consumption Trends^[1].

Investment Implications: Balancing Risk and Resilience

For investors, Nexstar's strategic positioning presents both opportunities and challenges. On one hand, its focus on local news and hybrid content delivery positions it to capitalize on the enduring value of community-centric media. On the other, the broader industry's financial decline—projected to see U.S. linear TV advertising and pay-TV subscription revenues fall to $126.1 billion in 2024 and continue declining through 2029PwC: Price hikes will help streaming revenue reach …^[5]—poses significant headwinds.

Nexstar's success will hinge on its ability to navigate regulatory approvals, innovate in data-driven advertising, and maintain a delicate balance between local relevance and national appeal. If it can do so, it may carve out a sustainable niche in a fragmented media ecosystem. However, the rise of streaming platforms, with their superior targeting capabilities and on-demand flexibility, ensures that the battle for viewer attention—and advertiser dollars—will remain fiercely contested.

Conclusion

Nexstar's preemptive scheduling of Jimmy Kimmel Live! is more than a programming decision; it is a strategic statement about the future of local TV. By prioritizing local content, Nexstar is betting on the enduring power of community-centric media in an age of digital disruption. Yet, as industry trends show, this bet must be paired with aggressive innovation and regulatory agility to succeed. For investors, the key takeaway is clear: the long-term value of traditional media lies not in resisting streaming but in redefining its role within a hybrid media landscape.