The confrontation surrounding Jimmy Kimmel has come to an end, yet the struggle between networks and their affiliates continues. Kimmel is back on the airwaves nationwide as defiant affiliate owners Nexstar and Sinclair have retreated, agreeing to resume broadcasting his ABC late-night program following a week of tension.
Kimmel faced a three-night suspension from ABC after Brendan Carr, the Federal Communications Commission chairman, threatened to impose penalties on the network due to remarks made during his monologue. Carr criticized Disney following Kimmel’s commentary on the right-wing narrative surrounding a youth involved in a shooting, characterizing it as a political manipulation attempt.
After Carr’s intervention, Nexstar and Sinclair removed Kimmel from their ABC stations, compelling Disney to temporarily halt “Jimmy Kimmel Live!” for a brief period. However, this incident catalyzed a broader debate about free speech, paving the way for Kimmel’s return on September 23. By week’s end, both Nexstar and Sinclair reinstated the show.
From a surface perspective, it appears Disney emerged victorious. Nonetheless, the landscape of television networks is rarely so simple. While Disney managed to avert a more serious conflict, the brief blackout concluded with an unexpectedly serene resolution given the initial intense disagreements. Despite the restoration of the show, Nexstar and Sinclair made their displeasure known while possibly seeking to win favor with the FCC.
Crucially for Nexstar and Sinclair—two entities notorious for their aggressive strategies (as many syndication distributors would attest)—they communicated their dissatisfaction to Disney forcefully. As affiliates, their unhappiness was evident, especially as they actively push for the FCC to eliminate restrictions on station ownership, which currently limits a single company to owning stations that collectively reach no more than 39% of U.S. households. This enhanced Nexstar and Sinclair have been showcasing their influence.
Two weeks prior, the public’s awareness of Nexstar and Sinclair was limited, even among those who watched their owned stations. Now their names are recognized widely.
Their contentious stance against Disney escalated this September when they pulled “Jimmy Kimmel Live!” from their ABC affiliates, a strategic move following Carr’s warnings against Disney, giving the affiliates a pretext for their actions. With Nexstar and Sinclair removing Kimmel, he disappeared from 25% of the country, prompting Disney/ABC to temporarily sideline him. Even with Kimmel resuming in 75% of the U.S., the incident highlighted a growing divide between broadcast networks and their affiliates, a rift likely to deepen in the future.
This animosity stems from affiliates feeling increasingly aggrieved as network ratings drop while they face rising payments in “reverse compensation” to networks. Historically, networks compensated stations for airing their content. However, by the early 2000s, that dynamic reversed, with networks now demanding that stations pay for the privilege of airing their programming. Moreover, networks are pushing viewers toward their streaming platforms, diverting audiences from local broadcasts.
“The situation is tough,” observes an executive from a competing station group. “Are we content? No. But we hope we can coexist.” Another adds, “With these kinds of shenanigans, do we even want to remain part of the broadcast scene?”
Some affiliate contracts grant Disney the option to license “Jimmy Kimmel Live!” to other stations in the Nexstar/Sinclair markets had their ABC affiliates continued to withhold it. Back in 1993, 57 ABC affiliates—predominantly in smaller markets—declined to air the premiere of “NYPD Blue,” citing content concerns. ABC then found alternative programming sources within independent and Fox stations, ultimately leading to those affiliates capitulating when the show became a significant hit.
The FCC has allowed stations greater leeway in rejecting network content that it deems unsuitable for “the public interest.” Nevertheless, the likelihood of a sustained boycott vanished on September 26, when “Jimmy Kimmel Live!” was reinstated nationwide.
Both Nexstar and Sinclair lean conservative and may not be particularly enthusiastic about airing Kimmel, considering his critiques of the Trump administration. However, there is a more pressing motive for both to curry favor with the FCC. (Nexstar stated it “had no communication with the FCC or any government agency prior to” their withdrawal of Kimmel’s show.)
Nexstar aims to reshape the landscape of local television in the U.S., notably through a significant acquisition; it intends to purchase the Tegna station group for $6.2 billion, potentially expanding its reach to 80% of over-the-air TV audiences. Meanwhile, Sinclair seeks to implement the advanced ATSC 3.0 transmission technology, also known as “NextGen TV,” which has the potential to revolutionize the usage of over-the-air frequencies. Consumer advocacy groups warn the majority of the spectrum might then be allocated for non-broadcast purposes—more crucially, Sinclair holds a significant patent that could yield billions if 3.0 becomes the industry standard.
Ironically, consolidation among station groups is likely to lead to fewer local news platforms. The roll-out of ATSC 3.0 may also eliminate some competitors as station owners pivot to alternative spectrum applications. Disney’s Bob Iger and other executives have contemplated their long-term plans regarding local television as they shift focus to streaming services. As recent developments have unveiled the vulnerability of the traditional network-affiliate partnership, could this signal an imminent decline for local stations?
A final word from an executive on the waning network-affiliate model: “If we can’t collaborate, we’re both destined for decline.”
