Broadcaster-a-Broadcaster: Nexstar Sues Granite Over Fox Affiliation
July 26, 2011
FORT WAYNE, IND.: Nexstar Broadcasting is crying monopoly in one
of the markets where it dropped a Fox affiliation. The company filed a civil
antitrust suit in the Northern District of Indiana against Granite
Broadcasting, which picked up the Fox affiliation in for Fort Wayne. The
agreement with Fox gives Granite control of three of the top four network
affiliates in the market, No. 107 in the nation.
Granite’s WISE-TV carries NBC and will add Fox to a digital subchannel. It also
runs WPTA-TV, the ABC affiliate, through a local marketing agreement with
Malara Broadcast Group. The two stations also carry MyNetwork and the CW,
bringing network affiliations between them to a total of five.
“Nexstar filed the litigation to remedy the anticompetitive impact that has
been caused and will be caused by Granite’s efforts to monopolize local
advertising sales in the Fort Wayne, Ind., designated market area,” the Irving,
Texas, broadcast company said. “Granite will control local television
advertising sales for stations affiliated with the Fox, NBC and ABC networks,
as well as the CW and MyNetwork TV networks.”
Nexstar’s suit charges that Granite’s market footprint violates federal and
state antitrust law.
“Nexstar is seeking a judgment that will cause Granite’s ability to control the
advertising sales and revenues of at least one of the three ‘Big Four’ network
affiliations to be terminated. It has also sought treble damages for injuries
that it has sustained and will sustain as a result of Granite’s anticompetitive
acts,” the company said, not specifying an amount.
Nexstar’s been busy this year, battling with Fox and more recently, exploring a
sale. The company, which owns 65 TV stations, has been dropping Fox
affiliations over the network’s demand for a split of retransmission fees. WFFT-TV,
it’s Fort Wayne station, is going indie on Aug. 1.
Last week, Nexstar announced that it had hired advisers to explore a possible sale.
Nexstar is being represented in its lawsuit by Constantine Cannon LLP and Krieg
Deborah D. McAdams