I agree that's a whole lot of eggs in one basket, but the folks funding this operation must be aware of that possibility. Do you think CNN even considers them a remote threat? Heck No!
I don't have a clue who is really behind the whole deal, but the funding seems to be there for now. There must be some timetable for the growth, and a aggressive business plan. This could easily migrate via OTA into a solid diginet once it get a bit more polished.
Viewers sure don't seem to care about visual and audio quality much anymore as you of all people know (winky guy emoji).
But does anyone (here) remember that first year of CNN?
The first year of CNN they would take anything...and air everything, no matter how bad it was, or where it was produced. A bunch of real crappy TV from all over the USA flowed into Atlanta. Taped packages arrived by Greyhound bus ,mail, Federal Express or Airborne Express. A bunch of small time reporters also got some huge breaks when CNN aired those packages from those small markets.
CNN also aired some real gems during that time, including portions of one reporters resume tape by mistake one late evening.
Train up these kids and their network, and In a few years maybe Sinclair or Byron will buy them.
I'm paying very close attention to them.