OTT Local Sales OverviewBill Caudill

Vice President Digital Media Sales

Nexstar Media Group

2

197 Local and Network Affiliated TV Stations

115 U.S. Markets

458 Local Websites and Mobile Apps

43 U.S. States

1,800+ Sellers throughout US

OTT Agenda

• OTT Overview

• OTT Demand

• Forms of OTT

• Digital Video Ecosystem

• Target Cable Advertisers

• Comscore X Cross Platform Sales

• Sales Structure/Education/Training

OTT Overview

Over the Top (OTT)

Over the Top (OTT)

Over the Top (OTT)

OTT Demand

OTT Demand

Between 2019 and 2023, US

advertisers will increase

their spending on connected

TV from $6.94 billion to

$14.12 billion.

Forms of OTT

Forms of OTT

• Resellers – The Trade Desk

• TV Commercial Passthrough agreements

• Owned & Operated Premium Inventory

• Livestream

• Affiliate Offerings: NBC, FOX, CBS, CW

Forms of OTT

• Resellers – The Trade Desk

• TV Commercial Passthrough agreements

• Owned & Operated Premium Inventory

• Livestream

• Affiliate Offerings: NBC, FOX, CBS, CW

Forms of OTT

Partial List of OTT Content Provider

• ABC News

• ACORN.TV

• Amazon Video

• Apple TV iTunes

• CBS All Access

• CBS News

• CNN Go

• Crackle

• Crunchyroll

• CWTV

• Dailymotion

• DirecTV Now

• Disney Now

• Fox News / Fox

Nation

• Fubo.tv

• HBO Now

• Hulu

• iFood.tv

• iHeartRadio

• Mixer

• MLB.tv

• MLG.tv

• NBA App

• NBC News

• NBC Sports

• Netflix

• NFL Mobile

• NHL

• Pandora Radio

• PBS

• PBS Kids

• Philo

• PlayStation Vue

• Pluto.TV

• Showtime

• Sling TV

• Spotify

• Starz

• Syfy Now

• TBS

• The Roku Channel

• The Vidmark

Channel

• Travel Channel

• Tubi TV

• Twitch

• USA

• VEVO

• VRV

• VUDU

• Watch TNT

• Watch ESPN

• WWE

• Xbox Movies & TV

• Xumo

• YouTube

• YouTube TV

15

The New “Big 4” – Monthly Usage based on

Time Spent

Forms of OTT

EMMYS: Best Comedy “FLEABAG” Amazon Prime Video

17

The New “Big 4” – Monthly Usage based on

Time Spent

Forms of OTT

Forms of OTT

• Resellers – The Trade Desk

• TV Commercial Passthrough agreements

• Owned & Operated Premium Inventory

• Livestream

• Affiliate Offerings: NBC, FOX, CBS, CW

Forms of OTT

• Resellers – The Trade Desk

• TV Commercial Passthrough agreements

• Owned & Operated Premium Inventory

• Livestream

• Affiliate Offerings: NBC, FOX, CBS, CW

• Total Pageviews – Legacy Nexstar 2018 to 2019:

❑ 2018 – 5,001,412,768

❑ 2019 – 5,510,887,596

oGrowth of 509,474,828 year over year

o10% increase

• Total Video Views – Legacy Nexstar 2018 to 2019:

❑ 2018 – 227,781,581

❑ 2019 – 539,506,929

oGrowth of 311,725,348 year over year

o137% increase

Forms of OTT

Big video growth markets in Q4

• Baton Rouge 1022% increase in video views

• Wheeling 580% increase in video views

• Abilene 439% increase in video views

• Colorado Springs 385% increase in video views

• Raleigh 367% increase in video views

Forms of OTT

Forms of OTT

• Resellers – The Trade Desk

• TV Commercial Passthrough agreements

• Owned & Operated Premium Inventory

• Livestream

• Affiliate Offerings: NBC, FOX, CBS, CW

User initiated audio

Mobile Web Video Overlay

Mobile App Pre Roll

Desktop Pre-roll Video

Desktop OutstreamVideo

❑Television Schedule

❑Core Digital Video❑Desktop/Mobile Web: Pre Roll Video/Instream

❑Desktop: Outstream

❑Desktop: In Banner Video Ads

❑Desktop: Native Video via Nativo

❑Mobile Web: Mobile Video Overlay

❑Mobile App: Pre Roll Video

❑Sales Shows/Segments Online

❑Live stream (parades)

❑Nexstar Digital❑OTT, CTV, Blend

❑Programmatic / Targeted Video

User initiated audio

Digital Video Ecosystem

Digital Video Ecosystem

Digital Video Ecosystem

• Reaching Audiences with Video

• Video Environments

• O&O Video Content

Digital Video Ecosystem

• Reaching Audiences with Video

• Video Environments

• O&O Video Content

Connect your brand with a highly engaged audience, wherever they are…

PREMIUM AUDIENCE

Local news consumers

Your demographic

Geographic, behavioral, custom targeting

EVERY ENVIRONMENT

Television

Desktop and Laptop computers

Tablets and Mobile devices

Pre-Roll

Audience “on the go” engaging

with non-skippable video.

Extend your reach into our

network!

In-Banner Video

Grab your audience while

scrolling through their favorite

websites

Outstream

Your video won’t be missed

in-line with premium news

content on desktop and

laptop computers

Overlay

Reach mobile users with this

highly viewable unit

QUALITY CONTENT

Livestream Events

Episodes and Videos

Digital News

VIDEOA N YW H E R E

Local, loyal news audience

in a trusted, credible space

On-Air

Digital Video Ecosystem

OTT

Local, premium audience

watching their favorite programs

Target Cable Advertisers

Cord-Cutting Accelerates in the US (Rapid TV News-January 29,

2019)

A Survey of 5,000 Americans by the Waterstone Group’s has indicated

that 59% of Americans have cut the cord, while another 29% are thinking

about it. That leaves just 12% of Americans who are committed to staying

with their traditional cable packages.

Breakdown of States

As part of the same survey Waterston looked at state-level data, to see

which parts of America are most aligned with cord-cutting trend. The

percentage of cord-cutters is highest in Idaho (72%) and lowest in New

Jersey (just 37%).

The Investment in Content:

Netflix spent $13 Billion on content in 2018, Amazon spent $5 Billion, and

Hulu gave subscribers access to $30 Billion worth of content.

Target Cable Advertisers

CABLE SPEND IN PORTLAND ‘18 v ‘19

Business Category

# of Businesses

2018

2018 Cable

Local

2019 Cable

Local Difference

FINANCE BANKING &

INSURANCE 6,122 3.07 2.574 -0.496

HEALTH CARE 15,830 2.74 2.305 -0.435

AUTO 1,512 2.705 2.002 -0.703

AUTO AFTERMARKET 5,868 2.188 1.831 -0.357

FURNITURE 1,931 2.176 1.759 -0.417

BROADCAST &

PUBLISHING 1,728 1.943 1.716 -0.227

Automotive Sales 1,187 2.184 1.54 -0.644

Eating and Drinking

Places 10,545 1.847 1.486 -0.361

MISC. RETAIL 8,149 1.706 1.445 -0.261

Furniture Sales 1,198 1.619 1.286 -0.333

Banks 1,216 1.502 1.267 -0.235

Food Stores-Retail 3,575 1.165 0.951 -0.214

ENTERTAINMENT &

AMUSEMENT 4,423 1.067 0.894 -0.173

TELECOMMUNICATIO

NS 1,863 1.038 0.863 -0.175

Television

Broadcasting Stations 34 0.872 0.829 -0.043

Medical Doctors 3,829 0.916 0.777 -0.139

Cable and Other Pay

Television Services TV

Services 106 0.875 0.722 -0.153

Credit and Mortgage

Services 782 0.861 0.721 -0.14

Business Category

# of Businesses

2018

2018 Cable

Local

2019 Cable

Local Difference

Other Medical

Professionals 6,458 0.857 0.713 -0.144

All Other Business

Locations 96,634 0.833 0.707 -0.126

AIRLINES & TRAVEL 6,794 0.745 0.663 -0.082

Retail Tires 303 0.753 0.648 -0.105

Legal Services 3,694 0.754 0.627 -0.127

Retail Jewelry 617 0.673 0.564 -0.109

Automotive Parts and

Supplies 735 0.673 0.547 -0.126

Gambling Casinos 36 0.601 0.547 -0.054

Government 3,758 0.623 0.528 -0.095

Automotive Repair

Services 3,857 0.633 0.527 -0.106

Pharmacies 366 0.611 0.512 -0.099

Telecommunications

Services 1,372 0.618 0.511 -0.107

Hospitals 259 0.596 0.495 -0.101

Retail Floor Coverings 734 0.557 0.473 -0.084

Electric Power Utilities 183 0.563 0.472 -0.091

PERSONAL SERVICES 4,693 0.533 0.457 -0.076

Recreational Vehicle

Dealers 180 0.516 0.457 -0.059

Physical Fitness

Facilities 1,054 0.498 0.419 -0.079

Other Schools 4,341 0.498 0.411 -0.087

Retail Sporting Goods 822 0.454 0.383 -0.071

WHOLESALE TRADE 258 0.476 0.38 -0.096

HVAC Installation

and Repair 172 0.475 0.379 -0.096

DIGITAL VIDEO SPEND IN PORTLAND ‘18 v ‘19

Business Category # of Businesses

2018 Online

Video Local

2019 Online

Video Local Difference

Market Totals 246,561 112.486 1005.147 892.661

AUTO 1,512 11.915 13.672 1.757

Automotive Sales 1,187 10.914 12.537 1.623

Real Estate Services 10,427 11.056 12.507 1.451

MISC. RETAIL 8,149 7.458 8.598 1.14

FINANCE BANKING &

INSURANCE 6,122 7.21 8.192 0.982

Eating and Drinking

Places 10,545 7.13 7.804 0.674

AIRLINES & TRAVEL 6,794 5.747 6.494 0.747

TELECOMMUNICATIO

NS 1,863 5.075 5.748 0.673

FURNITURE 1,931 4.877 5.324 0.447

Food Stores-Retail 3,575 4.675 5.188 0.513

HOME IMPROVEMENT 4,827 4.136 4.556 0.42

ENTERTAINMENT &

AMUSEMENT 4,423 3.894 4.479 0.585

Furniture Sales 1,198 4.125 4.456 0.331

Retail Home

Improvement 2,334 3.96 4.359 0.399

HEALTH CARE 15,830 3.737 4.254 0.517

Colleges and

Universities 402 3.531 4.051 0.52

Retail Jewelry 617 3.261 3.713 0.452

All Other Business

Locations 96,634 3.122 3.603 0.481

BROADCAST &

PUBLISHING 1,728 2.955 3.315 0.36

BUSINESS SERVICES 16,452 2.798 3.251 0.453

Business Category # of Businesses

2018 Online

Video Local

2019 Online

Video Local Difference

Apparel and

Accessory Stores-

Retail 1,953 2.879 3.206 0.327

Credit and Mortgage

Services 782 2.761 3.144 0.383

Travel Services 2,709 2.837 3.143 0.306

AUTO AFTERMARKET 5,868 2.661 3.016 0.355

DotCom Businesses 491 2.577 2.941 0.364

Apartment Operators 2,296 2.512 2.88 0.368

Telecommunications

Services 1,372 2.498 2.808 0.31

Banks 1,216 2.288 2.626 0.338

Cable and Other Pay

Television Services TV

Services 106 2.205 2.469 0.264

CONSTRUCTION 21,036 1.963 2.198 0.235

Recruitment 246,561 1.695 2.066 0.371

Hotels/Motels 1,876 1.841 2.036 0.195

Miscellaneous Retail 4,061 1.589 1.863 0.274

Other Medical

Professionals 6,458 1.402 1.587 0.185

Government 3,758 1.3 1.497 0.197

Contractors-Building 10,057 1.312 1.48 0.168

General

Merchandise Stores 508 1.373 1.46 0.087

Financial Services 1,231 1.293 1.44 0.147

Automotive Repair

Services 3,857 1.128 1.276 0.148

Comscore LXPlatform Report

ComScore XPlatform Report

This chart shows the incremental audience provided by digital platforms

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

WBRE Wilkes-Barre, Pa. (NBC) WEHT Evansville, Ind. (ABC) WHTM Harrisburg, Pa. (ABC) WTAJ Altoona, Pa. (CBS)

News

Primetime

Sales Structure, Education, Training

Sales Structure, Education & Training

• Complex Space

• Transparency-Reporting

• National/Regional Sales

Sales Structure, Education & Training

• Complex Space

• Transparency-Reporting

• Local Direct National Sales

Sales Structure, Education & Training

• Complex Space

• Transparency-Reporting

• Local Direct National Sales

Sales Structure, Education & Training

• Complex Space

• Transparency-Reporting

• Local Direct/National Sales

Thank You!