It's an RSS feed that links directly to the other station's website. Lots of Gray stations do it. At mine we have every TV station and newspaper in the state. It's a way to tell your web viewer that you're their best source for news...all of it. Does it work? We'll see. Bold move to put them on the front page...we stick ours inside.
It's an interesting move for WSAZ to put the WOWK news listings on its site. There is the obvious TV news competition, but in the era of the internet, WSAZ is competing just as much online with the Huntington Herald-Dispatch and the Charleston Gazette, and it has links to both papers' websites in that RSS feed section as well.
I disagree with the "McDonald's having a Wendy's menu" comparison. The internet is not a sum-zero game, particularly for websites that offer news and information for free. It's not a case of "Do I want to spend $5 at McDonald's on a Big Mac combo or $5 at Wendy's for a Spicy Chicken sandwich combo?"
Bottom line: WSAZ is providing more local news options for people via WSAZ.com with the RSS feed information, which in turn makes its website that much more valuable as a one-stop location for finding local news.