Nexstar CEO: Big Tech Swallowed Local Newspapers. Local TV Could Be Next

Why It Matters

The deal is critical for preserving locally produced news that underpins civic discourse, while also giving broadcasters a fighting chance against the advertising dominance of a few tech giants.

Key Takeaways

• YouTube captures one‑eighth of all U.S. television viewing
• TikTok delivers news to one‑quarter of young adults
• Five platforms to control 65% of $260 B ad market by 2026
• Nexstar‑TEGNA merger creates reach in 130+ U.S. communities
• Local broadcast stations employ ~18,000 staff, half are journalists

Pulse Analysis

The advertising landscape in the United States has been reshaped by a handful of digital giants. YouTube alone now commands roughly 12.5% of all television viewing, while TikTok is the primary news source for one‑quarter of young adults. According to S&P Global/Kagan, YouTube’s video ad revenue last year exceeded the total spend of traditional broadcast television. Analysts forecast that by 2026 five platforms—Facebook, Amazon, Microsoft, Google and TikTok—will control 65% of a $260 billion ad market. This concentration squeezes the revenue streams that local broadcasters have relied on for decades.

The decline of local newspapers offers a cautionary tale for broadcast. Over the past two decades, the sector lost about 270,000 jobs as advertising migrated online, leaving many communities without a daily paper. Regulatory relief arrived too late to reverse the trend, and local TV faces a similar inflection point. Outdated FCC rules limit ownership consolidation and spectrum flexibility, hampering broadcasters’ ability to achieve the scale needed to compete with algorithm‑driven platforms. Without a comparable boost in reach and resources, stations risk losing audience share and the ability to fund robust newsroom operations.

Nexstar’s acquisition of TEGNA, which expands its footprint to more than 130 markets and adds roughly 9,000 journalists, is a strategic response to these pressures. The combined entity will own about 15% of the nation’s 1,700 full‑power stations, still leaving gaps in 20% of the country, but the scale provides leverage in advertising negotiations and the capacity to invest in local content that algorithms cannot replicate. Policymakers and industry leaders are watching to see whether such consolidation can preserve trusted news while maintaining competition. The outcome will shape the future of local journalism and the democratic function of community‑focused broadcasting.