Nexstar Media: Broadcasting's Biggest Bet - [Business Breakdowns, EP.221]

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Jun 25, 2025

In this discussion, Simeon McMillan, founder of Accured Interest and former executive in broadcasting, dives deep into Nexstar Media Group's dominance in local television. He analyzes the shifting landscape of the industry, revealing how consolidation has changed the game. The impact of cord-cutting and the decline in pay TV subscriptions are explored, alongside the crucial role of live sports. McMillan also critiques the slow adoption of next-gen broadcasting technology, hitting on both financial strategies and the future challenges facing local broadcasters.

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ANECDOTE

Simeon's Media Journey

Simeon McMillan has extensive experience in media as both an investor and operator across TV, cable, and radio.
He worked at Univision Networks and MediaCo, gaining hands-on financial and strategic insight in broadcasting.

INSIGHT

Broadcast TV’s Hub-and-Spoke Model

Broadcast TV evolved around networks like NBC, CBS, ABC, and Fox partnering with local affiliates due to signal range limits.
Regulations capped ownership at 39% of U.S. population, promoting a hub-and-spoke model with O&Os and many affiliates.

INSIGHT

How Broadcast Revenues Work

Cable providers pay networks and broadcasters subscriber fees decided by complex negotiations.
Retransmission fees let local broadcasters charge cable companies like cable networks, increasing their revenue share.

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This is Zack Fuss. Today, we are breaking down Nexstar Media Group. Nexstar controls more local television stations than any other company in the US. This industry has experienced substantial consolidation, which has reshaped itself over the past decade and ultimately culminated in the emergence of businesses like Nexstar as the preeminent station group outside of the Big Four.

My guest today is Simeon McMillan, founder of media-focused research firm Accrued Interest. He's held roles as a banker and executive within prominent television, cable, and radio businesses, including Univision Networks and Media Co. In this discussion, we will examine the foundational structure of the broadcast television industry, tracing its evolution from the pre-Internet hub-and-spoke model of the major networks, NBC, CBS, ABC, and Fox.

Simeon breaks down the revenue streams that sustain this ecosystem and how subscriber fees from multi-channel video programming distributors like YouTube TV and Comcast cable are distributed among the networks and their affiliates. We also address the impact of cord-cutting on subscribers and how those viewership metrics impact pricing power within the television ecosystem.

Please enjoy this Breakdown of Nexstar Media.

For the full show notes, transcript, and links to the best content to learn more, check out the episode page⁠⁠⁠ ⁠here⁠⁠⁠⁠.

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Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit⁠⁠⁠⁠ joincolossus.com/episodes⁠⁠⁠⁠.

Editing and post-production work for this episode was provided by The Podcast Consultant (⁠⁠⁠⁠https://thepodcastconsultant.com⁠⁠⁠⁠).

Show Notes

(00:00:00) Welcome to Business Breakdowns

(00:00:41) Simeon McMillan's Background in Media

(00:02:48) Understanding the Broadcast Television Industry

(00:04:15) The Evolution and Structure of Broadcast Networks

(00:08:12) Revenue Streams and Financial Dynamics

(00:14:26) Nexstar Media Group: Growth and Acquisitions(00:21:34) Financial Profile and Revenue Streams

(00:32:35) Challenges and Future of Broadcast Television

(00:47:15) Capital Allocation and Strategic Insights

(00:53:01) Key Lessons from Nexstar