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As viewers and advertisers continue to drift away from broadcast television stations, the industry segment finds itself out of favor with many investors. So why is Ackerley Group Inc. willing to snap up stations that others are looking to shed?
Credit the cluster.
Through a technique it calls Digital CentralCasting, Ackerley Group is able to deliver programming for a large collection of stations in a region from a central location, cutting back on costs and thereby allowing the overall group to operate more efficiently than otherwise possible.
The strategy of assembling stations in regional clusters reflects a broader trend in the media business, and it was a major driver behind an active year on the acquisition front for local media companies.
One of the largest deals of the past year involved Ackerley Group and another Seattle-based communications concern, Fisher Cos. Inc. In August Ackerley Group paid Fisher subsidiary Fisher Broadcasting Inc. $60 million for the CBS affiliate in Fresno, Calif., which was renamed KGPE-TV. Through Digital CentralCasting, operations of the station were intertwined with others...