Local news broadcasters face economic pressure and automation

Local news broadcasting is facing significant economic challenges in both Canada and the United States. In Canada, the traditional model where entertainment revenues subsidize expensive news programming is eroding due to the rise of foreign streaming services. These services have accelerated cord-cutting and increased the costs of acquiring entertainment content, leaving less capital for local newsrooms. The CRTC has acknowledged that news is a fundamental but costly component of the Canadian broadcasting system that requires support.

In the United States, Nexstar Media Group, the largest owner of local television stations, is reportedly implementing further layoffs across its ABC, CBS, FOX, and NBC affiliates. These reductions include cuts to on-air talent, producers, and creative teams. The company is increasingly moving toward automation and centralized hubs to handle graphics production and newscast elements, reducing the need for on-site staff. This shift follows a broader industry trend of declining linear viewership and unpredictable advertising revenue as audiences migrate to streaming platforms.