The Riddle of 24-Hour Local TV News Stations: A Revenue and Audience Analysis

Why are there not many 24-hour local TV news stations? The answer to this question is multifaceted, intertwining the economics of broadcasting with the preferences of the modern viewer. Despite the high costs of operating a local news channel, there seems to be a scarcity of stations that operate around the clock. This article delves into the reasons behind this phenomenon, including the implications of low viewership and the impact of advertising rates.

Low Local News Market Demand

Aside from the expenses that have been mentioned, there's the fundamental fact that unless you’re in a fairly large metropolitan area, there just isn’t very much true local news. This reality poses a significant challenge for TV news stations aiming to cater to a niche audience. Even in densely populated areas, traditional local news content like reports on community events, city council meetings, and regular updates on local happenings now often face competition from the internet and social media platforms.

After all, the average viewer is more likely to check social media or visit a news website for local information than to tune into a 24-hour local TV news station. Consider the scenario where a viewer in a small town might be more interested in an update on why Farmer Brown's cows got mysteriously pregnant a few weeks after he thought he saw a flying saucer. However, once the first couple of stories are over, viewers are likely to switch to more popular channels or go online for more substantial content, such as live coverage of presidential events or the latest global news.

Low Viewership and Staffing Costs

24-hour local TV news stations would require a significant amount of staff to maintain the airtime. Even in metropolitan areas with high viewer counts, maintaining staff for overnight programming is a challenge. The reality is that viewership during overnight hours tends to be lower. Unlike the daytime and evening newscasts, which are closely watched and can drive high advertising rates, overnight programming is often less profitable, if not completely ignored by advertisers.

Local news stations that do operate 24/7 often struggle to keep the station running. Maintaining a live team on air 24 hours a day, 7 days a week is a significant cost. This includes salaries, benefits, and equipment maintenance. The costs associated with staffing are often overwhelming, especially given that the revenue generated during the overnight hours is minimal or nonexistent due to low viewer engagement. As a result, it is more economical for most news stations to focus on daytime and evening newscasts, which have higher viewership and more substantial advertising revenue.

Advertising Rates and Revenue Challenges

While local TV news stations can command higher advertising rates during programming like local news, compared to syndicated programming news and sports, this does not necessarily solve the revenue gap created by low overnight viewership. The fact remains that viewers are most likely to watch linear TV during the day and early evening, making these times the most lucrative for advertising.

Local news stations operate on a delicate balance between providing timely and relevant information to their audience and maintaining profitability. The lucrative advertising rates during the day and evening hours are often not enough to justify the high costs associated with maintaining a 24-hour operation. As a result, most local news stations focus on producing and airing news during the most watched periods. This strategy helps them to meet their financial goals while still fulfilling their mission of providing local news to the community.

The Role of Syndicated Programming and Online News

Syndicated programming and online news sources have further eroded the demand for traditional local TV news. Syndicated programming, such as national news stations or specialized news services, offer a convenient and cost-effective alternative for viewers who want reliable and objective news. Additionally, online news platforms provide up-to-the-minute updates and have no geographical restrictions, making it even more difficult for local TV news stations to attract a large audience.

One example of this shift is the prevalence of online news websites and apps. These platforms can deliver news stories in a more interactive and engaging format, allowing users to comment, share, and engage with the content in real-time. Furthermore, online news sources are often available 24/7, catering to the 24-hour news cycle without the high expenses associated with maintaining a physical broadcast station.

Conclusion

There are 24-hour local TV news stations, but they are relatively rare. The scarcity of such stations can primarily be attributed to the low viewership during overnight hours, high staffing costs, and the availability of more efficient and cost-effective alternatives like syndicated programming and online news. While the demand for truly local news still exists, the financial realities of running a 24-hour station make it a hard sell for most news organizations.

Keywords: local TV news, 24-hour news, low viewership, advertising rates, staffing costs