NBC Finally Entering the 24/7 Local News Market – No Harm In Being a Copy Cat

Implications: Regional News Network (RNN) serving the New York, New Jersey, and Connecticut has been doing local news in the area for years.  RNN focuses on the Hudson Valley in NY and not the Big Apple.  Not everyone is a big city person. By the way the article forgot to mention RNN.

Analysis: At the end of the day politics is all local, telecommunications is all local, and so is the news.  NBC is launching a bold venture.  I say bold because WNBC of NY is the jewel in the crown of NBC.

However, WNBC has a lot to draw on.  Regional News Network (RNN) a very popular local cable news network serves New Jersey, Connecticut, and the Hudson Valley of New York.  WNBC can simply copy what RNN has done or improve or change what RNN has done.  No harm in being second to the party.

Competition in the local news market is a good thing.  National news is always interesting but I live in a small town and I want to know what is going on in my town.  RNN has it down to a science.  RNN shows up in towns in the Hudson Valley that only people in the Valley or the region know of.  This is what WNBC will have to contend with.  RNN runs all day, seven days a week, and maintains a separate weather channel for the area.  If you watch WNBC today you hear mostly news about New York City.  WNBC is not alone because WCBS and WABC also report news mostly about the City of New York.  I would like to hear news about my town.  When I watch RNN I hear news about my community; the type of news I hear includes serious news as well as news about our high school's basketball team.

A side note: the challenge for a company like RNN will be competition.  But competition is good because it will ultimately lead to better product.  Of course at this time you cannot find RNN on the Verizon FiOS network so I guess I will stick with IO Cablevision because it provides RNN.

WNBC’s entry into the local 24/7 news space will be a god thing for those of us living in the suburbs and rural markets.  This might spur interest in investing in the rural information community.  WNBC's actions may cause the other big broadcasters to start paying attention to the locals.

Can investors make money advertising on news programs serving small communities?  I think so.  Effective advertising is targeted local advertising.  When you watch RNN you see commercials targeted to the town and general area.  WNBC should be able to attract advertising to its 24/7 local news program.  With a big dog like NBC entering the local news market we may see investors trying to figure out how to monetize Tier 2 markets or at least the fringes of Tier 1 markets.