WEBVTT - Scripps Co. Bets Big on Broadcast Bandwidth as Key to TV’s Future 0:00:00.080 --> 0:00:12.480 M h. Welcome to Strictly Business, Varieties weekly podcast featuring 0:00:12.560 --> 0:00:16.840 conversations with industry leaders about the business of media and entertainment. 0:00:17.160 --> 0:00:21.439 I'm Cynthia Littleton, co editor in chief of Variety. Today, 0:00:21.440 --> 0:00:25.880 my guest is Adam Simpson, CEO of E W Scripts Company. 0:00:26.640 --> 0:00:29.240 Scripts is one of the oldest names in mass media 0:00:29.320 --> 0:00:33.080 in the US, with deep roots in newspapers. Today, the 0:00:33.080 --> 0:00:36.479 company's focus is firmly on the future of TV and 0:00:36.560 --> 0:00:41.519 how people consume news, information and entertainment. Simpson wants to 0:00:41.560 --> 0:00:44.479 make sure the company that is still controlled by Scripts 0:00:44.520 --> 0:00:47.880 Airs is competitive no matter how the market takes shape. 0:00:48.240 --> 0:00:51.239 Simpson is the rare media CEO who has a background 0:00:51.280 --> 0:00:54.840 as an investigative journalist. He explains in our wide ranging 0:00:54.880 --> 0:00:58.480 conversation why he is aggressively bought TV stations since he 0:00:58.520 --> 0:01:01.680 took over as CEO into when he's seventeen, and he 0:01:01.760 --> 0:01:05.720 also details how Warren Buffett's Berkshire Hathaway came on board 0:01:05.720 --> 0:01:08.240 as a partner in Scripts as few point six five 0:01:08.319 --> 0:01:12.200 billion dollar acquisition of I On Media TV stations earlier 0:01:12.200 --> 0:01:15.640 this year. That's all coming up on today's episode of 0:01:15.680 --> 0:01:28.319 Strictly Business. Welcome back to strictly business. Adam Simpson, President 0:01:28.440 --> 0:01:31.039 CEO of E W Scripts, K, thank you so much 0:01:31.080 --> 0:01:33.679 for joining us today. Yeah, it's my pleasure, glad to 0:01:33.680 --> 0:01:38.000 be here. There has been a lot going on at Scripts. 0:01:38.040 --> 0:01:41.880 I have been writing about deals and transactions and movement 0:01:41.920 --> 0:01:44.720 in the company. UM some m and a on both 0:01:44.720 --> 0:01:48.040 sides of the equations, some buying, some selling. Tell me 0:01:48.160 --> 0:01:51.000 kind of in the big picture, is this the result 0:01:51.280 --> 0:01:54.600 of kind of a concerted effort to grow and make 0:01:54.680 --> 0:01:57.400 some of these moves or are you responding to organic 0:01:57.440 --> 0:02:01.320 market opportunities? Well, I would say both. I mean, really 0:02:01.400 --> 0:02:03.720 for the long history of Scripts and about a hundred 0:02:03.720 --> 0:02:07.600 and forty two years, the company has UH prided itself 0:02:07.680 --> 0:02:11.040 on always evolving to meet the changing needs of the 0:02:11.080 --> 0:02:15.440 media consumer. And you know, the company started in newspapers. 0:02:15.480 --> 0:02:19.399 It was one of the first companies to own radio licenses, 0:02:19.960 --> 0:02:22.919 one of the first companies to launch with television when 0:02:22.919 --> 0:02:25.240 that was brand new and nobody quite understood the impact 0:02:25.280 --> 0:02:30.320 it would have on on America. Was a cable mso 0:02:30.600 --> 0:02:34.400 an operator got out of the operating business and actually 0:02:34.480 --> 0:02:40.680 you know, launched among the first cable UH networks um 0:02:40.800 --> 0:02:44.160 h G TV, and then acquired the controlling interest of 0:02:44.200 --> 0:02:48.840 the Food Network. We spun off the Scripts Networks back 0:02:48.880 --> 0:02:53.360 in two thousand eight, ultimately exited the newspaper business, double 0:02:53.440 --> 0:02:55.799 the size of our local television portfolio, and then, you know, 0:02:55.880 --> 0:02:58.040 under my leadership, I would say over the last three years, 0:02:58.080 --> 0:03:01.160 we've really been focused on re making the company again 0:03:01.200 --> 0:03:04.520 to be prepared for the next iteration of what the 0:03:04.560 --> 0:03:08.200 media landscape looks like. The opportunities have come to us 0:03:08.800 --> 0:03:12.760 UM first to add scale to our local media portfolio. 0:03:13.080 --> 0:03:18.040 We can recognize the opportunity in consolidation, and we participated 0:03:18.040 --> 0:03:20.440 in that. We double the size of our our local 0:03:20.440 --> 0:03:24.520 media portfolio. UM. We also invested you're talking about the 0:03:24.520 --> 0:03:27.720 purchase of I on Media. No, actually this was even 0:03:27.760 --> 0:03:30.440 before that. We we we double the size of our 0:03:30.440 --> 0:03:35.880 local stations when we acquired stations from cordill Era and 0:03:36.040 --> 0:03:40.840 also stations from the Next Star Tribune to vestitures, and 0:03:40.880 --> 0:03:45.720 then last year, during amidst the pandemic, we really sought 0:03:45.800 --> 0:03:48.880 to seek the opportunity in the chaos, and that's when 0:03:48.960 --> 0:03:52.800 we acquired I on Media and really transformed the company. 0:03:52.800 --> 0:03:56.560 That was what I would consider a significant transformation UH 0:03:56.640 --> 0:04:00.520 an investment in what we see as the future uh, 0:04:00.600 --> 0:04:04.960 the over the air ecosystem, and and we've also created 0:04:05.040 --> 0:04:07.520 value and been in other business as well. I mean, 0:04:07.560 --> 0:04:10.440 we we certainly were early to the game and podcasting, 0:04:10.520 --> 0:04:14.200 acquiring mid Role Media and Stitcher and Trite and digital 0:04:14.720 --> 0:04:18.040 and then last year, uh, and this year we actually 0:04:18.520 --> 0:04:23.440 sold our podcasting business and our exiting digital audio as 0:04:23.440 --> 0:04:26.560 well for really good returns for our shareholders. And what 0:04:26.760 --> 0:04:30.320 made it? With podcasting growing, you know, really, it's got 0:04:30.320 --> 0:04:32.359 so much sizzle. Why did you feel like it was 0:04:32.400 --> 0:04:35.440 the right time for you to exit? Well, I look, 0:04:35.480 --> 0:04:38.160 I think we believe that scale is necessary in the 0:04:38.200 --> 0:04:41.440 media space, and it became very clear to us that 0:04:41.720 --> 0:04:44.599 our brands, we had done a wonderful job growing those brands, 0:04:44.600 --> 0:04:47.719 and they had they had been great companies to operate. Frankly, 0:04:47.760 --> 0:04:49.919 I think podcasting will be one of the most important 0:04:49.920 --> 0:04:53.440 platforms for the future of journalism. But I also recognize 0:04:53.520 --> 0:04:56.240 that we were not going to be in a position 0:04:56.640 --> 0:05:01.359 to help foster those companies growth. And putting them in 0:05:01.400 --> 0:05:05.560 the hands of audio only companies that had the capital 0:05:05.760 --> 0:05:09.960 necessary for them to really continue to foster their growth 0:05:10.200 --> 0:05:14.440 would benefit both the brands are employees, and doing so 0:05:14.520 --> 0:05:17.320 at a time when the valuations were high would benefit 0:05:17.320 --> 0:05:21.360 our shareholders, and that's why we sold Stitcher to Syria 0:05:21.440 --> 0:05:24.480 s x M last year. And that's why we recently 0:05:24.480 --> 0:05:27.600 announced the sale of Triton Digital to Higheart, because those 0:05:27.640 --> 0:05:32.760 two companies truly have scale in the audio ecosystem, the scale, 0:05:32.800 --> 0:05:35.720 the kind of scale that we didn't have. Is it 0:05:35.800 --> 0:05:38.760 hard when you're evaluating your assets like that? Is it hard? 0:05:38.880 --> 0:05:40.760 Do you have to kind of force yourself sometimes to 0:05:40.800 --> 0:05:44.600 be objective because for something that people may be very 0:05:44.640 --> 0:05:47.960 passionate about, or even something like podcasting, which is, you know, 0:05:48.000 --> 0:05:50.360 all the arrows are going up, it seems like it's 0:05:50.400 --> 0:05:53.360 a growth business. But you know, what you explain makes 0:05:53.360 --> 0:05:55.279 a lot of sense. But is it hard to get there? 0:05:55.400 --> 0:05:59.239 Sometimes if you're in a business that you're passionate about, 0:05:59.720 --> 0:06:03.719 Oh absolutely. Um. You know, while I see my role 0:06:04.200 --> 0:06:07.240 as a bit of an asset manager, the truth is, 0:06:07.279 --> 0:06:10.560 you know, podcasting. We got into podcasting under my leadership 0:06:10.600 --> 0:06:13.200 when I was the chief digital officer. I love podcasting. 0:06:13.240 --> 0:06:17.200 I've always loved audio. I actually started in radio um 0:06:17.320 --> 0:06:21.320 and so, uh, it was a bit of an emotional decision. 0:06:21.440 --> 0:06:25.880 I think anytime you're divesting of businesses, it can be emotional, 0:06:26.000 --> 0:06:27.719 but at the same time, I think you have to 0:06:27.760 --> 0:06:30.400 think about what's best for those businesses. I think you 0:06:30.440 --> 0:06:32.640 have to think about what's best for the employees and 0:06:32.720 --> 0:06:36.560 those businesses. And you know, our responsibility is always to 0:06:36.600 --> 0:06:41.760 create value, and uh, podcasting is a growth business. That's 0:06:41.800 --> 0:06:46.440 what's fueling a lot of the valuations. And it was 0:06:46.480 --> 0:06:49.719 a great opportunity for us to do right by our employees, 0:06:49.880 --> 0:06:53.760 those businesses, and our own company and shareholders divesting of 0:06:53.800 --> 0:06:58.239 those assets, even despite my personal love and affection for 0:06:58.360 --> 0:07:02.279 the medium and the business. MM. Well with the with 0:07:02.360 --> 0:07:05.200 the acquisitions that you've made and with Ion Media coming 0:07:05.240 --> 0:07:09.800 into the fold um earlier this year, you have you 0:07:09.800 --> 0:07:12.720 know you are you said you're looking to position the 0:07:12.720 --> 0:07:15.560 company for the future, and a lot of those those 0:07:15.560 --> 0:07:19.080 acquisitions have been broadcast TV stations, which on the surface, 0:07:19.160 --> 0:07:22.360 don't you know, they don't screen the future. Why are 0:07:22.480 --> 0:07:26.320 you invested in continuing to invest in broadcast TV? Well, yeah, 0:07:26.320 --> 0:07:29.560 I mean I think people have this impression that over 0:07:29.600 --> 0:07:32.120 the air broadcasting is a relic of the past. And 0:07:32.160 --> 0:07:36.600 if you're thinking about over the air broadcasting, um the 0:07:36.680 --> 0:07:39.800 way you know, I grew up where I remember my 0:07:39.920 --> 0:07:43.880 dad having to adjust the antenna in order to get 0:07:43.880 --> 0:07:46.080 the signal before we had cable in our in our 0:07:46.120 --> 0:07:48.840 house when I was a kid. That's not what over 0:07:48.880 --> 0:07:52.680 your broadcasting is anymore. Today, over the air broadcasting is 0:07:52.720 --> 0:07:56.920 a robust marketplace. It's a growth marketplace in media, and 0:07:56.960 --> 0:08:00.400 it all has to do with the changes to the 0:08:00.400 --> 0:08:05.440 television ecosystem because while most people have followed closely the 0:08:05.520 --> 0:08:10.320 growth of over the top television, of streaming of of 0:08:11.320 --> 0:08:15.000 s BOD or subscription video on demand right alongside that, 0:08:15.480 --> 0:08:17.960 over the air has been growing. And today, you know, 0:08:18.000 --> 0:08:20.560 there's recent research that talks about the total number of 0:08:20.560 --> 0:08:25.200 households now at of US homes that are antenna homes 0:08:25.200 --> 0:08:28.720 digital antenna homes. That's about fifty million households that are 0:08:28.800 --> 0:08:33.760 using digital antennas. And I think what's happened is consumers 0:08:33.840 --> 0:08:39.640 have recognized that there is a universe of free over 0:08:39.640 --> 0:08:44.760 the air television that pairs very efficiently with s BOD. 0:08:45.640 --> 0:08:50.720 And we talked about this phenomenon as self bundling, you know, Cynthia, 0:08:50.800 --> 0:08:55.320 I mean, consumers have completely taken control of their entertainment 0:08:55.360 --> 0:09:00.400 options and for US investing further in free ads reported 0:09:00.440 --> 0:09:03.319 television through over the air broadcasting. In fact, being the 0:09:03.360 --> 0:09:07.160 dominant company in this marketplace is a really terrific opportunity 0:09:07.200 --> 0:09:11.160 because we see continued growth ahead and it is interesting 0:09:11.200 --> 0:09:13.560 we're seeing, you know, we've we've seen we've done stories 0:09:13.600 --> 0:09:16.240 about the rise of things like Pluto TV and people 0:09:16.240 --> 0:09:18.320 that are assembling a lot of a lot of big 0:09:18.320 --> 0:09:21.319 content companies are slicing and dicing and assembling new channels. 0:09:21.520 --> 0:09:24.200 And when you get right down to it, it's like, oh, 0:09:24.240 --> 0:09:27.880 it's free over the air television. What a concept. It's 0:09:27.920 --> 0:09:32.000 been around for you know, upwards of upwards of seventy years. 0:09:32.200 --> 0:09:37.959 Um do you um? How so do you see I mean, 0:09:38.400 --> 0:09:40.760 for for the moves that you're making, it sounds like 0:09:40.800 --> 0:09:43.760 you see E W Scripts as kind of still rooted 0:09:44.040 --> 0:09:46.480 in the broadcast distance. That is that that is kind 0:09:46.480 --> 0:09:48.920 of the core foundation of the company that you see 0:09:49.000 --> 0:09:52.400 in the for the foresueable future. Well, look, we've always 0:09:52.400 --> 0:09:56.080 been a journalism and entertainment company and we will continue 0:09:56.120 --> 0:09:59.960 to be a journalism company. Are our roots are in journalism, 0:10:00.040 --> 0:10:03.599 going all the way back to you know, ews first newspaper, 0:10:03.640 --> 0:10:06.840 the Penny Press in Cleveland. We expect that will continue 0:10:06.880 --> 0:10:11.200 to serve consumers both locally through our local television stations 0:10:11.240 --> 0:10:14.040 as well as nationally. When I think about the platforms 0:10:14.080 --> 0:10:18.040 that we serve people on, will certainly make use of broadcasting. 0:10:18.200 --> 0:10:21.120 I mean there is no more ubiquitous platform up which 0:10:21.160 --> 0:10:25.200 you can reach more Americans than broadcast television. But our 0:10:25.280 --> 0:10:28.600 brands are also in the over the top space where 0:10:28.600 --> 0:10:33.560 obviously aggressive in digital uh, and I expect will continue 0:10:33.600 --> 0:10:37.200 to make, you know, additional moves to distribute our our 0:10:37.240 --> 0:10:41.080 programming streams wherever the consumer gets them. So it's not 0:10:41.160 --> 0:10:45.440 a it's not a you know, a world. We don't 0:10:45.440 --> 0:10:48.400 think the world is going to be either pay TV 0:10:48.920 --> 0:10:51.920 or O T T or over the year. We really 0:10:52.120 --> 0:10:54.559 think that the world is going to be a combination, 0:10:54.640 --> 0:10:57.120 That TV landscape is going to be a combination of 0:10:57.160 --> 0:10:59.480 all three. And I I, you know, I sort of 0:10:59.520 --> 0:11:03.200 think my charges to make sure we're well positioned to 0:11:03.280 --> 0:11:06.400 navigate the future of television no matter how the the 0:11:06.440 --> 0:11:10.800 consumer watches. How are you feeling in the local in 0:11:10.920 --> 0:11:14.320 the local trenches, how are you feeling it various times 0:11:14.320 --> 0:11:17.199 in the pandemic. You know, we've heard that local local 0:11:17.920 --> 0:11:22.199 spot has really really taken taken hard hits obviously, and 0:11:22.360 --> 0:11:25.319 you know, for for obvious reasons. But what what, how's 0:11:25.360 --> 0:11:29.920 it been and what do you see? For well, it's 0:11:29.960 --> 0:11:34.800 sort of interesting. Local television itself has proven itself more 0:11:34.920 --> 0:11:39.239 valuable as a source of news and information for consumers 0:11:39.320 --> 0:11:42.640 during this pandemic than for you know, for for I 0:11:42.920 --> 0:11:46.240 would say, you know, a long while before it comes 0:11:46.320 --> 0:11:52.280 at the moment when newspapers are most um wounded, and 0:11:52.720 --> 0:11:57.720 local TV remains the dominant form of news information for 0:11:57.840 --> 0:12:00.679 most Americans, and in fact it's it's also the most 0:12:00.720 --> 0:12:03.640 trusted source of news and information. So during the height 0:12:03.640 --> 0:12:05.960 of the pandemic, during the social and rest of the summer, 0:12:06.000 --> 0:12:09.320 we saw higher ratings to our newscasts than we had 0:12:09.360 --> 0:12:12.160 seen in a long time. Now some of that is retained, 0:12:12.200 --> 0:12:14.600 been retained, and some of that has settled down. But 0:12:14.679 --> 0:12:17.880 at the same time, you know, we also were significantly 0:12:17.920 --> 0:12:22.920 suffering from the impact of the business disruption. When you 0:12:23.720 --> 0:12:28.680 watch the government shut down local economies, it's you know, 0:12:29.000 --> 0:12:33.800 undoubtedly going to impact the local advertising environment, and dealership 0:12:33.840 --> 0:12:36.240 is going to feel it, right absolutely. I mean the 0:12:36.280 --> 0:12:39.440 auto you know, the manufacturing plants shut down, that stops 0:12:39.480 --> 0:12:42.400 the auto dealers from getting inventory. The auto dealers are closed, 0:12:42.400 --> 0:12:44.800 I mean don't forget that, you know, some of our 0:12:44.800 --> 0:12:48.120 TV stations, service advertisers that can be as large as 0:12:48.600 --> 0:12:53.160 you know, the supermarket chain down to as small as 0:12:53.920 --> 0:12:57.440 UM you know, the mufflers, the mufflers shop on the 0:12:57.480 --> 0:13:01.800 corner and all of those business is. We're definitely negatively 0:13:01.840 --> 0:13:05.640 impacted during the pandemic, since I would tell you that 0:13:05.679 --> 0:13:08.800 we have been very encouraged by the pace of the rebound. 0:13:09.520 --> 0:13:14.000 UM first quarter has been very good, I expect us. 0:13:15.000 --> 0:13:19.040 I absolutely could have never guessed that we would have 0:13:19.280 --> 0:13:23.320 seen a rebound as strong as we saw following the 0:13:23.360 --> 0:13:26.760 election and following the pandemic that we experienced last year. 0:13:27.120 --> 0:13:29.600 You know, most of the categories are really coming back. 0:13:29.960 --> 0:13:32.040 The one exception I would say that we haven't seen 0:13:32.120 --> 0:13:35.560 come back yet has been travel and leisure. Travel and 0:13:35.640 --> 0:13:39.360 leisure is starting to come back as governors allow more 0:13:39.960 --> 0:13:43.960 in person events. But I would tell you, UM, you know, 0:13:44.040 --> 0:13:46.599 travel and leisure as a category has also been positively 0:13:46.640 --> 0:13:50.920 impacted by the continued growth of the sports betting industry. 0:13:51.240 --> 0:13:54.800 Sports betting has become a very important category for US. 0:13:54.840 --> 0:13:57.960 So core what we referred to as core advertising is 0:13:57.960 --> 0:14:04.520 actually UM twenty with respect one doing very very well. Hopefully, 0:14:04.679 --> 0:14:07.960 you know, hopefully those are positive signs on many levels 0:14:08.000 --> 0:14:11.160 for the broadcasting business and for the country at large. 0:14:14.000 --> 0:14:17.280 We'll be back with more from Script CEO Adam Simpson 0:14:17.440 --> 0:14:26.840 right after this break, and we're back with Scripts CEO 0:14:27.200 --> 0:14:31.040 Adam Simpson. Scripts that you have invested a lot in 0:14:31.240 --> 0:14:35.480 multicast networks, networks that run on the as sub channels 0:14:35.520 --> 0:14:38.000 on the bandwidth of of what we call the mother 0:14:38.320 --> 0:14:42.200 the mothership station in each market. It's amazing, you know, 0:14:42.280 --> 0:14:46.360 the technology is is amazing. What what can be done? 0:14:46.560 --> 0:14:50.560 And um, you just recently launched announced plans to launch 0:14:50.800 --> 0:14:53.840 a couple of new networks along the lines of programming, 0:14:54.000 --> 0:14:58.240 along the lines of certain niches. How are how is 0:14:58.280 --> 0:15:02.200 the multicast business? It's been around, you know, in various 0:15:02.200 --> 0:15:05.080 stages for some time. Now is it becoming you know, 0:15:05.120 --> 0:15:07.920 this gives you, this gives Scripts a chance to be 0:15:08.080 --> 0:15:10.960 a national player because of the nature of how these 0:15:11.000 --> 0:15:17.040 how these channels can be accessed in streaming by streaming platforms. 0:15:17.120 --> 0:15:19.840 How has that been Is that has that changed your 0:15:19.880 --> 0:15:22.120 profile at all in terms of talking to Madison Avenue 0:15:22.120 --> 0:15:24.080 because you have a lot of services that now can 0:15:24.160 --> 0:15:29.360 reach nationally. Yeah, So let me impact that we don't 0:15:29.360 --> 0:15:31.920 even think about them as multicast anymore. At this point, 0:15:31.960 --> 0:15:36.800 the over the air universe is exploding um and whether 0:15:36.920 --> 0:15:40.920 the whether the signal is on a D one or 0:15:41.040 --> 0:15:44.240 main channel or on one of the sub channels is 0:15:44.280 --> 0:15:47.080 sort of irrelevant at this point because to the consumer 0:15:47.560 --> 0:15:50.840 they all appear to be full fledged over the air 0:15:50.880 --> 0:15:55.880 broadcast television programming streams. And so rather than sort of 0:15:55.920 --> 0:15:59.080 think about them as you know, sort of the dominant 0:15:59.080 --> 0:16:01.760 station and the sub channels, at this point, we programmed 0:16:01.800 --> 0:16:05.080 them as networks, and we bring them to Madison Avenue. 0:16:05.080 --> 0:16:07.760 We bring them to the national advertising marketplace as a 0:16:07.800 --> 0:16:12.840 bundle of networks. We reach more than seventy million Americans monthly. 0:16:13.640 --> 0:16:17.760 Our networks are highly rated. They take significant ratings out 0:16:17.800 --> 0:16:22.960 of the broadcast and cable marketplace and therefore revenue out 0:16:22.960 --> 0:16:28.880 of the marketplace. The real interesting opportunity is that as 0:16:29.000 --> 0:16:33.560 more consumers, particularly younger consumers, forgo pay TV or cut 0:16:33.600 --> 0:16:37.840 the chord, our free over the air television networks become 0:16:38.120 --> 0:16:42.040 the best way for Madison Avenue to reach those consumers 0:16:42.080 --> 0:16:46.360 because they're spending time with spot services which are commercial free, 0:16:46.880 --> 0:16:50.640 and they're spending time with free ad supported television over broadcast, 0:16:50.960 --> 0:16:53.920 and we will in on a grid on your smart TV, 0:16:54.360 --> 0:16:57.120 and it just looks like TV. That's right, it just 0:16:57.160 --> 0:16:59.960 looks like TV. The consumer doesn't care whether they're watching 0:17:00.040 --> 0:17:04.200 it off of what transmitter. You know. That's that's sort 0:17:04.240 --> 0:17:07.159 of like parsing. You know, whether you are watching a 0:17:07.280 --> 0:17:11.080 video on YouTube from WiFi or five G or four G. 0:17:11.600 --> 0:17:13.760 None of that really matters anymore at this point. The 0:17:13.800 --> 0:17:16.640 bottom line is I'm enjoying the content. And so we've 0:17:16.680 --> 0:17:22.080 really spent the last several years putting together networks that 0:17:22.880 --> 0:17:28.720 are programs specifically to attract niche demographics, and we'll continue 0:17:28.760 --> 0:17:32.439 to launch uh those networks in the over the air marketplace. 0:17:32.520 --> 0:17:36.720 At this point, you know, we have a really dominant position. Uh. 0:17:36.760 --> 0:17:38.320 If you if you were to be in one of 0:17:38.320 --> 0:17:41.159 our local markets, for example, and I'll just use uh 0:17:41.600 --> 0:17:45.119 Detroit as an example, there might be twenty five to 0:17:45.240 --> 0:17:49.040 thirty over the year channels that the consumer has access to. 0:17:49.359 --> 0:17:53.160 Now ours are already the biggest. They're they're they're they're 0:17:53.200 --> 0:17:56.480 all Nielsen rated, or they're you know, they're they're the 0:17:56.560 --> 0:18:00.719 most dominant in audience size. And you look at that 0:18:00.840 --> 0:18:05.280 twenty five or thirty channels Scripts has between our local 0:18:05.359 --> 0:18:08.919 stations and our national networks. You know, we will buy 0:18:09.000 --> 0:18:16.199 July have uh eight channels in Detroit, for example. So 0:18:16.240 --> 0:18:20.840 you're really talking about a fairly dominant share of Mart. 0:18:21.680 --> 0:18:24.160 It's a lot of share of the of the marketplace 0:18:24.320 --> 0:18:26.600 and a and a really terrific opportunity for us to 0:18:26.640 --> 0:18:31.320 serve advertisers with the demographics they're seeking. And do you 0:18:31.359 --> 0:18:34.200 have do you get broad m v p D distribution 0:18:34.320 --> 0:18:37.320 of those channels or does that not matter? So some 0:18:37.400 --> 0:18:40.320 of our channels have MVPD distribution and some of them don't. 0:18:40.359 --> 0:18:44.520 It doesn't you know, obviously, the more distribution you have matter, 0:18:45.080 --> 0:18:49.000 it's gonna matter. So Ion, for example, UM is carried 0:18:49.119 --> 0:18:52.400 on virtually all of the m v p ds as 0:18:52.400 --> 0:18:55.840 a result of must carry right, but some of the 0:18:56.000 --> 0:18:59.040 some of the other stations are in different different situations. 0:18:59.040 --> 0:19:01.280 In some cases we have MVB the carriage, in some 0:19:01.359 --> 0:19:04.240 cases we don't. It just really depends. Our goal, though, 0:19:04.320 --> 0:19:07.239 is to continue to drive greater distribution so that we 0:19:07.280 --> 0:19:11.560 can be wherever the consumer wants to watch Spot subscription 0:19:11.640 --> 0:19:16.960 video on demand services UM. That's UM. That's a really expensive, 0:19:17.160 --> 0:19:22.080 high risk knife fight going on among content creators. And 0:19:22.160 --> 0:19:26.080 it's going to benefit us because we have continued to 0:19:26.119 --> 0:19:30.760 see what happens when the consumer loads up incremental cost. 0:19:31.400 --> 0:19:35.119 As they add more cost, they become aware that free 0:19:35.160 --> 0:19:37.840 over the year television is an efficient pairing for it. 0:19:38.440 --> 0:19:40.399 The other the other thing I always think of. I mean, 0:19:40.440 --> 0:19:42.639 I think about, you know, the evenings my wife and 0:19:42.680 --> 0:19:46.280 I spend on the couch. You know, I love the 0:19:46.359 --> 0:19:49.840 subscription video on demand services. Um that I have to admit, 0:19:50.280 --> 0:19:52.040 um that it's starting to feel a little bit like 0:19:52.040 --> 0:19:54.879 a content blood. And every once in a while I 0:19:54.880 --> 0:19:57.159 find myself sitting on the couch and staring at the 0:19:57.200 --> 0:20:00.879 Netflix screen or flipping over to lipping over to Prime 0:20:01.080 --> 0:20:04.320 or Hulu, and I'm almost paralyzed, like what do I 0:20:04.359 --> 0:20:07.840 want to start next? And sometimes I just want to 0:20:08.280 --> 0:20:12.399 lean back, flip around and enjoy something that comes to me. 0:20:12.680 --> 0:20:16.639 And that's the opportunity in the free ad supported television space. 0:20:16.680 --> 0:20:20.399 And that's why consumers are flocking to plugging in digital 0:20:20.440 --> 0:20:23.760 antennas and recognizing that, you know, sometimes you want to 0:20:23.760 --> 0:20:28.400 watch something comfortable, and you know, that's that's the that's 0:20:28.560 --> 0:20:32.560 what's behind really what we expect to be a continued 0:20:32.600 --> 0:20:36.720 growth opportunity on our network side, and I on media. 0:20:36.800 --> 0:20:40.879 Of course, buying those sixties some stations brought you also 0:20:41.040 --> 0:20:44.720 a lot of bandwidth to carry and distribute your your 0:20:45.119 --> 0:20:48.280 subchannels or multicast networks or whatever you want to call them. 0:20:48.280 --> 0:20:51.400 And I know that that they brought you some technical 0:20:51.440 --> 0:20:55.879 capabilities that you didn't have before. So there was precisely 0:20:55.880 --> 0:21:01.040 I mean, we're distributing our programming streams over broadcast spectrum, 0:21:01.080 --> 0:21:04.520 and now our company is the largest holder of broadcast 0:21:04.560 --> 0:21:07.200 spectrum in the company in the country, and I would 0:21:07.240 --> 0:21:11.000 say we're the most efficient at monetizing that broadcast spectrum 0:21:11.040 --> 0:21:14.520 because you know will be uh, you know, eight nine 0:21:14.880 --> 0:21:20.480 networks deep soon. When you think about uh that ecosystem 0:21:20.480 --> 0:21:24.320 where that electronic program guide from the consumer's perspective, you know, 0:21:24.600 --> 0:21:27.280 you've got a lot of programming coming off of all 0:21:27.320 --> 0:21:31.439 of our transmitters that um that is that has delivered 0:21:31.520 --> 0:21:35.159 ubiquitously into the homes of you know that that fifty 0:21:35.160 --> 0:21:40.399 million Americans and growing. M No, it's interesting, and you 0:21:40.480 --> 0:21:43.040 also have a very interesting partner in the ion track 0:21:43.280 --> 0:21:46.960 transaction in Berkshire half away. Can you at all characterized 0:21:47.000 --> 0:21:49.520 sort of what the what the appeal of this transaction 0:21:49.680 --> 0:21:54.080 was from the Berkshire perspective. Well, I think Berkshire recognized 0:21:54.840 --> 0:21:58.359 the opportunity around the economics of this transaction, and I 0:21:58.400 --> 0:22:02.120 think they like to see company is that have near 0:22:02.240 --> 0:22:07.640 term operating discipline but long term value creation aspirations and goals, 0:22:07.960 --> 0:22:11.040 and that's exactly we have Scripts operates. I also know 0:22:11.119 --> 0:22:15.359 Berkshire UM does like doing business with family controlled companies, 0:22:15.440 --> 0:22:17.840 you know, Scripts as public but family controlled. And the 0:22:17.840 --> 0:22:20.159 Script's family has been at this for a hundred and 0:22:20.240 --> 0:22:24.240 forty two years, incredibly committed to this company, and they 0:22:24.320 --> 0:22:27.040 are and Berkshire are long holders. They like to be 0:22:27.160 --> 0:22:30.640 invested with people who themselves are invested in the business, 0:22:31.000 --> 0:22:33.160 and I think all of that comes together. The other 0:22:33.200 --> 0:22:35.960 thing I would say my sense of things is UM 0:22:36.040 --> 0:22:39.960 they understand the television ecosystem and they also understand the 0:22:40.040 --> 0:22:44.640 wireless and spectrum ecosystem, having made investments in both of these. 0:22:44.680 --> 0:22:47.400 You know, they own w p l G in Miami, 0:22:47.520 --> 0:22:50.119 which means they have an intimate understanding of the value 0:22:50.240 --> 0:22:53.159 of local television and what's at play there. They are 0:22:53.200 --> 0:22:56.239 also the nations, if not the nation's the nation, one 0:22:56.240 --> 0:23:01.560 of the nation's largest television advertisers in their ownership of Geico, right, 0:23:01.880 --> 0:23:05.959 so they also recognized exactly where television shines. I mean, 0:23:05.960 --> 0:23:09.680 there is no other medium that does an effective job 0:23:09.760 --> 0:23:15.160 of um, you know, selling cars, of converting people from 0:23:15.160 --> 0:23:19.040 one wireless carrier to the next, of of getting the 0:23:19.119 --> 0:23:22.640 cash registered to ring and television. I think they understood 0:23:22.680 --> 0:23:25.879 the value of journalism and and our company's commitment to 0:23:26.400 --> 0:23:28.880 the fourth of State, the defense of the First Amendment, 0:23:28.960 --> 0:23:31.320 and the service to the communities where we operate. And 0:23:31.320 --> 0:23:34.080 I think they appreciated all of that, along of course 0:23:34.119 --> 0:23:39.160 with the the economics that this transaction UH provided for 0:23:39.320 --> 0:23:42.840 transformation for the scripts for the U Scripts Company. Adam 0:23:42.880 --> 0:23:45.160 tell us a little bit about what about your background 0:23:45.200 --> 0:23:48.600 and what brought you to script. So I'm a journalist 0:23:48.680 --> 0:23:52.040 by trade. I was born and raised in Los Angeles. 0:23:52.040 --> 0:23:55.240 I attended U C L A UM and UH started 0:23:55.280 --> 0:23:57.439 working at a at a radio station when I was 0:23:57.440 --> 0:23:59.480 in high school, a radio station called k g I 0:23:59.640 --> 0:24:03.080 L UH out in the out in the valley. UM 0:24:03.200 --> 0:24:08.040 and then went right into television after UM. Frankly, you know, 0:24:08.119 --> 0:24:10.480 losing my job at kg I L when when they 0:24:10.480 --> 0:24:13.600 when they did a format change, which is not uncommon, 0:24:13.640 --> 0:24:16.040 I guess in the radio business, and I worked in 0:24:16.080 --> 0:24:20.640 Los Angeles television news rooms, mostly doing investigative journalism. For 0:24:20.960 --> 0:24:23.840 the first several years of my career. I worked also 0:24:23.920 --> 0:24:27.720 for the CBS O and O in Chicago w BBM, 0:24:28.000 --> 0:24:31.200 and I found myself working for Scripts as a a 0:24:31.280 --> 0:24:34.359 sort of a consultant um to help them start up 0:24:34.359 --> 0:24:38.399 an investigative team in Phoenix. And at Scripts, I found 0:24:38.400 --> 0:24:44.200 a company incredibly committed to journalism, committed to the highest 0:24:44.280 --> 0:24:49.960 form of ethics, objective quality journalism. It was exactly, you know, 0:24:50.080 --> 0:24:53.840 the kind of storytelling that I that I enjoyed, long form, 0:24:54.200 --> 0:24:59.159 long form investigative journalism. And when my wife was graduating 0:24:59.240 --> 0:25:02.840 from business school, we knew that we should be in 0:25:02.880 --> 0:25:04.800 the same city because I was sort of commuting back 0:25:04.840 --> 0:25:08.919