Nexstar's FCF and Capital Allocation
arr
food
network
THE HILL
NU
BILL BARR
Biographical Data, Bill Barr
OCCUPATION
Former United States At
General, 2019-2020
EDUCATION
George Washington
Columbia Universit
University, A.B.
•
•
3. ATSC 3.0 (NEXTGEN TV) Opportunity
•
Nexstar is upgrading its spectrum to allow it to monetize it via B2B data transmission services and other opportunities.
Nexstar is nearing full utilization of its existing spectrum capacity
and conversion to NEXTGEN TV (e.g. ATSC 3.0) will increase revenue
growth opportunities
Nexstar expects to convert its stations to ATSC 3.0 reaching 50% of
the population with consumer adoption of new standard TV sets to
follow
A BIA Advisory Services study estimated that broadcaster
expansion into high-speed broadband data transmission
markets could generate up to $15.0 billion of revenue for the
industry by 2030 comparable to current industry retransmission
revenues of $13.0 billion
NEXTGEN TV Revenue Opportunities
- Targeted advertising
Sports betting
.
Signal encryption
•
Other
Nexstar Leads the Way in ATSC 3.0 Deployment
Nexstar
TV Households
45,000,000
40,000,000
35,000,000
MEDIA GROUP, INC.
30,000,000
25,000,000
20,000,000
15,000,000
10,000,000
5,000,000
Nexstar
Sinclair
TEGNA
Fox
Gray
EW Scripps
Hearst
Univision
Cox Media
Graham Media
Comcast/NBC
ABC/Disney
High-Speed Data Transmission Revenue
Could Rival Retransmission Revenue Levels
NEXTGEN TV Revenue Projection
Medium-Term TV Applications:
Long-Term B2B Data Applications:
•
Additional multicast channels
•
Agriculture
($ in billions)
$15.0
•
Connected car
2020 Industry Retransmission Revenue: $13.0 BN
.
Interactive television,
$15.0
•
including:
Digital signage
$10.0
•
Education and distance learning
$10.7
.
GPS
•
IoT
$5.0
.
Public safety for emergency alerts
and other features
$6.4
$5.0
$1.7
$0.0
•
network applications
Telemedicine
Telecom for hybrid NextGen TV/5G
2025
2027
2030
Low Middle
High
Source: BIA and SNL Kagan
# of Markets
40
40
35
30
22205
15
10
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