That’s the result of paying way too much for a different station (KRON), doesn’t necessarily mean local broadcasting itself is in any jeopardy. The problem is they’re still carrying debt from the 1999 purchase and that’s killing their bottom line. Nothing beats up a company like seriously overpaying for an asset.
The switch to digital is going to seriously alter the broadcast landscape. Networks are going to be running 4 by broadcasts which will give viewers customization from the TV itself. Yes the internet will play more into it, but the idea of networks ending anytime in the next quarter century is laughable. If anything networks are actually going to EXPAND, your local ABC will now have more over the air broadcast ANY the internet as opposed to just one air broadcast.
Here's why that won't happen. Advertising and money. "Broadcast" by definition is inefficient and wasteful of advertising dollars. Last week's NY Times article about the death of newspapers mentioned that advertisers reach their customers via newspaper websites for $0.05 per customer compared to $1.00 per customer via dead-tree newspaper ads.
The exact same is true of television broadcast. Many ads are aired that never get look at by target eyeballs.
Think of the internet as "narrowcast." Advertising is much more targeted and efficient.
At least that's how I see it working out.