Stark political divisions in the U.S. have caused a surge in TV ad spending, with primary races in Ohio, Pennsylvania and other key states pointing to a massive haul in the upcoming fall midterms.
One key beneficiary of that influx of cash is Sinclair Broadcast Group, the No. 2 owner of local TV stations in the U.S. The company’s CEO, Chris Ripley offered his outlook on political ads and other topics in an appearance at the MoffettNathanson 9th Annual Media and Communications Summit.
“Some of these primary races are crazy,” Ripley said. He cited Ohio, where Donald Trump-backed U.S. Senate candidate J.D. Vance prevailed in a hard-fought contest. The $75 million spent on TV ads for the primary was 40 times more than what was spent on the primary in the last election, Ripley said, and four times more than the last general election.
“On the one hand, I lament that we’re in the political environment that we are,” Ripley said. “On the other hand, it’s very good for our business.”
The surge in primary spending points to a record midterm in the fall, with what Ripley called the “big money” kicking in during the third and fourth quarter.
Ripley took care not to make any endorsements, but his company’s local TV operation has been known for its highly partisan commentaries. It decided at the end of 2019 to end its controversial “must-run” opinion segments featuring personalities like former Trump Administration official Boris Epshteyn.
Ripley covered a number of other subjects besides politics during the 45-minute conversation. Sports streaming was a key theme, as the Sinclair-controlled Diamond Sports Group is poised to soft-launch a direct-to-consumer set of regional sports networks.
Asked by moderator Michael Nathanson about the opportunity that sports represent, Ripley said, “We hit about 80 million homes in our footprint. We know that around half of them are not getting an RSN. That’s a huge [total available market] right there that we can address.”
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