In a deal that makes its multicast networks easier to find over-the-air in major markets, Sinclair has agreed to pay Disney’s ABC Owned Television Stations to carry its Charge! network on its eight owned-and-operated stations.

Sinclair estimates that being on the ABC outlets — often the top stations in big markets such as WABC New York, KABC Los Angeles, WLS Chicago and WPVI Philadelphia — makes the action-and-adventure-themed Charge! available in 4 million new over-the-air households and 3.73 million new pay TV/cable households. 

Adam Ware, senior VP, growth networks group at Sinclair, told Broadcasting+Cable that the broadcaster’s strategy has been to get its multicast networks on Big Four stations in the biggest markets where it doesn’t own stations.

“All those efforts have now come to fruition,” Ware said. “The big payoff in our ratings growth has happened before you start to see increases coming from the distribution.”

Ware declined to say how much Sinclair is shelling out to The Walt Disney Co.-owned ABC for carriage. “We pay them affiliate compensation,” he said. “We’re very satisfied with the opportunities.”

Broadcasting a strong multicast network increases the value of ABC’s spectrum, Ware said, adding that it should help Localish, ABC’s own multicast channel, grow.

Multicast networks, which are broadcast over the air on TV stations’ secondary digital channels, have been growing, but not getting the same amount of attention as free ad-supported streaming television (FAST) channels, which are a darling of advertisers and media buyers.

Sinclair has begun its upfront discussions with buyers, trying to convince them that if they’re looking to reach the audiences they used to get buying cable, they should be buying multicast. The Charge! weekday lineup is heavy on off-network police procedurals, including CSI: Miami, CSI: New York, Law & Order: Criminal Intent, Without a Trace and 1970s offering CHiPs. Weekends offer a mix of those shows along with action movies. 

Ware likened multicast networks, mostly started by companies with experience in distribution rather than content production, to the early cable channels. Companies like Sinclair, E.W. Scripps and Weigel Broadcasting are building the next generation of television networks.

Multicasters Hard To Measure

What’s holding back these networks? For one thing, they don’t get enough attention. In Nielsen’s monthly report on TV usage. Nielsen breaks down the individual streaming services that get more than a 1% share of the market, But it doesn’t break out multicast networks among the broadcasters or cable networks in the cable category.

“Every headline that gets written is cable down, linear dead, streaming up,” Ware said. “If you had a headline that said ‘streaming up 10% and multicast up 9% … I’ve never read that headline, but I imagine if you had that headline, the advertising community might think about it a little bit differently as they’re trying to figure out where cable viewers went.”

Ware noted that the 20 highest-rated multicast networks were up 9% in February and that Sinclair’s Charge!, Comet and TBD were up 14% a month.

“Our revenues are going up. And our share of general market advertising is going up,” Ware said.

Ware notes that Sinclair’s networks — dubbed The Stack — are programmed to attract different audiences. There’s only about 5% audience duplication among the audience of Charge!, science-fiction focused Comet and TBD, he said. (Sinclair last year also launched The Nest, a lifestyle channel.)

In its monthly reports, the only free ad-supported streaming television networks  Nielsen lists in its streaming category are Roku, Pluto TV and Tubi. Each of them offers hundreds of channels, which makes buying Sinclair’s Charge, Comet or TBD more like the linear cable viewership buyers are trying to replace.

But Madison Avenue appears to be infatuated with FASTs, even though issues of measurement and transparency exist, and ad dollars are flowing to those online outlets.

“If they’re trying to move their money from cable and they move it to FASTs, they’re not replacing the reach, they’re getting the frequency,” Ware said.

Advertiser demand for FAST isn’t keeping pace with the added supply as new FAST channels keep launching. That’s depressing the ad prices on a cost-per-thousand viewer basis, Ware noted.

And many FAST channels are simply playlists, with episodes of a series running one after another, without channel branding, promos or other features appear between commercials, creating a less-than-optimal atmosphere for advertisers.

“There are elements of the traditional TV business that advertisers absolutely want,” Ware said.

There also may be a bias against antennas among buyers who don’t see them that often in Manhattan. Getting them to try over-the-air would help. “The quality of the networks that are sitting on the dot-3 and dot-4 has clearly changed over the years,” Ware added.

In the ABC deal, Sinclair’s Charge! moves from CBS Stations-owned WLNY in Riverhead, New York, to WABC, the top station in the nation. In Chicago, Charge had no carriage. It is now on WLS. It moves from WPHY in Philadelphia; KUBE, in Baytown Texas; and KMPH in Visalia, California.

Being on a more-watched channel is important in multicast. Sinclair recently made a deal to get its Comet network on CBS-owned stations. When CBS aired the Super Bowl, Comet got a boost going from nearly no viewers on an obscure station having about 3,000 viewers in February.

Those numbers pop on Madison Avenue. 

“Their eyes are open when they start to see numbers,” Ware said of media buyers. “The future of TV is here. We have to educate people that viewers are going to FAST, and they’re also going to multicast, and they use antennas to get there.” Ware said.

In the Media Mix

Chris Shewmake, VP of comms strategy and media at Denver-based media agency Cactus, said multicast is something that is considered part of a marketing plan.

“When we're going to market with TV spend on behalf of clients, we're thinking about the whole ‘living room experience’ more than we're thinking about how the ‘living room experience’ is delivered, whether that’s broadcast, multicast, etc.,” Shewmake said.

“We're evaluating the right mix of those delivery mechanisms based on the audience's consumption habits, and the economics of the platforms to get to our effectiveness goals. So for us, it's all on the table,” he said. “That said, I think some of the appeal of FAST for buyers is the growth in audience being reported by these sellers, the efficiency these platforms often offer versus direct buys with subscription-based streaming services, and the ability to reach viewers across such a wide variety of content and channels through one buy versus needing to take a multi-partner approach when working with a range of streaming providers.”

Shewmake said: “In general, we're still investing more heavily directly with the subscription-based providers because of the premium environment they offer with noteworthy original programming and premium events, such as sports. We will then supplement with more efficient, lower CPM offerings to help with overall reach and delivery.”

Nexstar Media said it plans to launch Rewind TV, a new digital subchannel airing classic sitcoms from the 1980s and 1990s, on Sept. 1.

With cord-cutting more viewers are turning not just to streaming, but to over the air digital multicast channels, and broadcasters are launching channels featuring vintage series to take advantage of the demand.

Also Read: E.W. Scripps Plans to Take Over the Air Nets Over the Top

Rewind TV will reach 50 million homes at launch, or about 40% of U.S. television households, Nexstar said. It will be carried on digital subchannels by TV stations, including outlets in New York, Los Angeles and Chicago.

The new network will feature shows from the 1980s and 1990s, including The Drew Carey Show, Murphy Brown, The Facts of Life, Growing Pains, Wings, Sabrina The Teenage Witch, Who’s the Boss and Family Ties.  

Nexstar already owns one of the oldest digital broadcast networks with Antenna TV, originally started by Tribune Broadcasting, which Nexstar acquired. Antenna TV will focus on programming from the 1960s and 1970s, including reruns of Johnny Carson on weeknights.

“This year marks Antenna TV’s 10-year anniversary, and it continues growing and finding new audiences,” said Sean Compton, president of Nexstar Media Inc.’s Networks Division. “To complement Antenna TV’s strong following with Baby Boomers, we created Rewind TV to give Gen X viewers a network dedicated to their own nostalgic comedy classics.”

Nexstar is not the only company launching digital channels, which are becoming a substantial business.

Earlier this month, Tegna launched Twist, a digital multicast channel aimed at women with unscripted lifestyle shows including Dance Moms, Tabatha Takes Over and Flipped Out. Twist was initially available in 43 markets.

Tegna bought two other multicast networks from Cooper Media for $77 million in 2019. The networks are adventure-oriented Quest and Justice, which was relaunched as True Crime last year.

E.W. Scripps plans to launch two new multicast networks on July 1, One is Defy, with unscripted programming aimed at men with the slogan “Here’s to the Mavericks.” . The other is TrueReal, featuring reality shows, mainly off-cable from A+E Networks, aimed at women 25 to 54. TrueReal was originally called Doozy, but it was quickly rebranded. 

In 2017, Scripps bought Katz Networks for $302 million, Katz operated Bounce, Escape, Grit and Laff channels featuring vintage shows targeting viewers based on genres and demographics. It has since launched additional channels including Court TV. 

The Katz Networks had profits of $62.5 million, up 45% in 2020, on revenue of $257.5 million, up 13.4%. 

The Katz Networks are now part of Scripps National Networks unit along with Ion Media. 

Some of the stations that had carried Katz networks will be carrying Nexstar’s new Rewind TV. Scripps is moving its channels to Ion stations it now owns, reducing the distribution fees it pays.

In October, Scripps plans to launch Newsy, its streaming news channel, as a free over-the-air network as well on Oct.1. 

Last year, Byron Allen bought digital multicast networks This TV and Light TV from MGM.

Weigel Broadcasting Co. is another player in the multicast business with one of the oldest and highest rated networks, MeTV. It also operates Movies! Network in cooperation with Fox Television Stations, and Decades, H&I and Start TV in association with CBS Television Stations.

In addition to owning 198 TV stations in its broadcasting division, Nexstar’s networks division operates Antenna TV, the NewsNation cable TV network (formerly WGN America) and WGN Radio in Chicago.

Tegna on Monday launched Twist, its digital multicast channel aimed at women.

Twist is available in 43 of the biggest TV markets, including 41 in which Tegna owns stations. Also carrying Twist are 11 Univision stations, 31 HC2 Broadcasting stations, WISH-TV, Indianapolis, WADL-TV, Detroit and WIWN-TV, Milwaukee. 

The network features unscripted home, food and lifestyle shows that feature surprise endings and reality shows with unpredictable moments. 

Among the titles featured at launch are Dance Moms, Tabatha Takes Over, Flipped Out and Clean House. In the coming month, the network will add Queer Eye for the Straight Guy, Top Chef Masters and Dr. 90210.

Also Read: E.W. Scripps Plans to Take Over the Air Nets Over the Top

“With today’s launch of Twist, reality TV just got much more exciting for over-the-air viewers,” said Brian Weiss, president and general manager of Tegna’s entertainment networks. “Audiences craving lifestyle and reality programming, who have been underserved in the multicast space, now have free access to high quality shows that have never before been available over-the-air.”

Tegna stations have launched an on-air and digital promotional campaign highlighting Twist, it’s programming and how to watch.

Tegna bought two other multicast networks from Cooper Media for $77 million in 2019. The networks are adventure-oriented Quest and Justice, which was relaunched as True Crime last year.

The E.W Scripps Co. said it will launch two multicast TV networks, Doozy and Defy TV, adding to the stable in its new national networks business.

The new networks are set to light up on July 1 and the company said it has secured distribution over 75% of the country.

Station-owner Scripps created its national networks business after acquiring the Katz Networks in 2017 for $302 million and Ion Media in a $2.65 billion deal completed in January.

“By creating compelling new network programming to distribute through Ion’ spectrum, Scripps is expanding the ways it creates value from our ownership of Ion and its powerful distribution platform,” said Scripps Networks president Lisa Knutson. 

Following on Katz’s strategy, the new networks are aimed at specific demographic groups.

Scripps said Doozy is aimed at women ages 25-54 with unscripted drama. The channel will feature off-network shows including Storage Wars, Married at First Sight, Hoarders and Little Women: LA.

Defy TV is for  men ages 25-54, Scripps said, with programming featuring fascinating people living life to the fullest. Shows include off-network series such as Pawn Stars, Forged in Fire, American Pickers and The Curse of Oak Island,

Doozy and Defy TV join Ion, Bounce, Laff, Grit, Court TV, Court TV Mystery and Newsy in the Scripps Networks national portfolio.

“These new networks solidify Scripps’ position as the leader in free TV, serving viewers across the country with premium programming they can access on any television set,” Knutson said. “Over-the-air television is growing rapidly, as more and more consumers ‘self-bundle’ by combining free television with subscription video-on-demand services. Doozy and Defy TV join our other networks in providing consumers even more entertaining, engaging – and free – programming. And they reinforce our ability to provide advertisers with effective and diverse reach.” 

Tegna said it is launching Twist, a multicast network aimed at women and featuring lifestyle and reality programming.

Twist is scheduled to launch in the spring and has distribution lined up in 70% of U.S. television households, Tegna said.

The network will air on Tegna stations in 41 markets; on Univision-owned stations in 11 markets including New York, Los Angeles, Chicago and Philadelphia and on HC2 stations in 31 markets.

Also Read: Tegna Acquires Locked On Sports Podcast Network

Additional distribution agreements are expected to be announced by summer.

“Twist will provide an exciting new viewing option for our female audience with content that has not been available through a multicast channel until now,” said Brian Weiss, president and general manager of Tegna multicast networks. “The launch of Twist will enhance Tegna’s leadership among non-fiction multicast networks, delivering the kinds of free content that over-the-air viewers crave.”

Tegna bought two other multicast networks from Cooper Media for $77 million in 2019. The networks are adventure-oriented Quest and Justice, which was relaunched as True Crime last year.

Twist programming will feature unscripted TV hits including Clean House, Top Chef Masters, Queer Eye for the Straight Guy, Dance Moms, Tabatha Takes Over, Tiny House Nation and Flipping Out. Many of these shows feature surprise, or twist, endings.

The network also plans to encourage viewers to submit videos of their own situations that featured a twist and how they persevered through them. The segments will be called Share Your Twist.

As they transition to ATSC 3.0, the Next Gen TV transmission standard, broadcasters want the FCC to clarify/modify the TV station license framework for simulcasting to extend to multicast streams.

The FCC is allowing stations to partner on distribution arrangements so that broadcasters can continue to deliver a primary stream in ATSC 1.0 given that ATSC 3.0 is not backward compatible with current sets.

Related: ATVA Says FCC Should Mandate HD Before Allowing Broadcast Internet

The National Association of Broadcasters, in a petition for declaratory rulemaking, wants the FCC to declare that various multi-station arrangements for hosting and originating multicast streams in ATSC 1.0 and 3.0 are OK.

It said that extending the TV station license to cover multicast streams would help establish that the originating content provider, whether primary stream or multicast stream, is responsible for compliance with FCC rules, or liable for potential violations.

Related: Everything You Need to Know About ATSC 3.0

"The Commission would simply be making clear that the originator of a particular multicast stream, not the host, would be the sole party responsible for ensuring compliance with statutory and regulatory requirements regarding hosted multicast streams," NAB told the commission. "This would include, but not be limited to, the Commission’s rules regarding political broadcasting, children’s programming, equal employment opportunities, the public inspection file, indecency, sponsorship identification, station identification, contests, the CALM Act, and the Emergency Alert System."

The idea is that if an originating station wants to start broadcasting in ATSC 3.0 and strike a deal with another station in the market to host a 1.0 simulcast of its multicast channels as well as primary channel, it is clear that it is the originating station that must assure the above compliance.

Related: FCC Seeks Comment on ATSC 3.0 Signal Extension

NAB said this would also make it easier for noncommercial stations to strike deals in which they could be paid for carrying the signals of commercial stations.  

NAB also wanted the FCC to rule that a station moving to ATSC 3.0 can strike a deal with a hosting station to air its multicast streams in 1.0 regardless of whether the originating station delivers those multicast channels in 3.0.

NAB said it is not asking the FCC to extend carriage rights to multicast streams, which are not subject to mandatory cable must-carry, but it does say the FCC should not subject the new arrangements to broadcast ownership rules.

"Grant of these requests will help preserve existing programming viewers enjoy today and will also help speed the rollout of Next Gen TV and its improved features and services to American viewers," NAB said.

Sinclair is launching its second multicast network, TBD, in early 2017 on the digital subchannels of Sinclair stations, the company said Wednesday (Dec. 7).

The broadcast net will offer short films, Web series, comedy, lifestyle, eSports, music and viral content from digital companies including Legendary Digital Networks, Jukin Media and Whistle Sports.

The QYOU has been hired to program the net, which will bring digital-first content to broadcasting.

“Our recent focus has been on expanding our business with new digital multicast networks that leverage our broadcast spectrum and household reach,” said Chris Ripley, President of Sinclair. “Much of the multicast market today focuses on classic TV and movie content, with little aimed at audiences for whom fresh and relevant pop culture content is important. With the launch of TBD, we aim to pair the very best premium digital-first content with the unmatched branding power of traditional television."

The launch comes as the FCC continues to reduce the amount of spectrum it is reclaiming for wireless broadband and more broadcasters will be staying in the business and retaining their channels.