GRAY TELEVISION REACHES AGREEMENT IN PRINCIPLE TO RENEW ALL GRAY NBC AFFILIATIONS NATIONWIDE

Rhea-AI Summary

Gray Television, Inc. (NYSE: GTN) has reached an agreement with the NBC Network to extend and renew all of its NBC network affiliations, which otherwise would have expired at year-end 2023. Gray owns and operates NBC affiliated television stations serving 56 markets. In the current 2023-24 television season, NBC is the #1 network and ranks first in all key demos, as well as first in primetime, morning/afternoon news, late night, primetime sports, scripted and alternative program categories. Gray Television, Inc. is the nation’s largest owner of top-rated local television stations and digital assets in the United States, serving 113 television markets that collectively reach approximately 36 percent of US television households. Its portfolio includes 80 markets with the top-rated television station and 102 markets with the first and/or second highest rated television station.

Insights

Market Research Analyst

The extension and renewal of Gray Television's NBC network affiliations are significant in maintaining the company's competitive positioning within the multimedia and broadcasting industry. The agreement assures continuity of content distribution, which is critical for audience retention and advertising revenue. Given that NBC is currently leading in several viewership demographics, this partnership is likely to sustain Gray's access to a broad audience base. This can translate into a stable advertising revenue stream, which is a key driver for the company's financial performance.

From a market perspective, the renewal of such affiliations often signals a vote of confidence in the company's management and strategic direction. It may also serve as a positive indicator to investors regarding the company's operational stability and its potential for future revenue growth, especially considering the reach of 36 percent of US television households that Gray commands. However, the impact on the stock price would likely be contingent upon the financial terms of the agreement, which are not disclosed and how these terms compare to industry standards and previous agreements.

Financial Analyst

Renewing network affiliations, particularly with a leading network like NBC, can have a material impact on Gray Television's financials. The company's ability to secure a renewal before the year-end deadline prevents any potential disruption in programming that could have adversely affected viewer ratings and, consequently, advertising revenues. As Gray Television operates a significant number of top-rated local television stations, the renewal will likely help in maintaining its dominance in various markets.

Investors should monitor how this renewal might influence the company's operating expenses and revenue forecasts. The cost of affiliation is a critical factor that can affect profit margins. Additionally, the announcement could potentially have a positive effect on the company's stock, as it eliminates the uncertainty regarding the status of a major network affiliation.

Media Industry Expert

The media landscape is highly competitive, with traditional television networks facing challenges from streaming services and digital media platforms. Gray Television's renewal with NBC, a network with a strong performance in key demographics, is a strategic move to secure high-value content that can attract both viewers and advertisers. This agreement is particularly important for Gray's business model, which relies heavily on local television stations and their associated digital assets.

Understanding the industry context, this affiliation renewal is a proactive step in ensuring that Gray Television remains relevant and competitive. The company's ownership of production facilities and interests in program companies like Swirl Films also suggests a diversified approach to content creation and distribution, which is essential in today's fragmented media consumption environment.

Atlanta, Dec. 27, 2023 (GLOBE NEWSWIRE) -- Gray Television, Inc. (“Gray) (NYSE: GTN) today announced that it has reached an agreement in principle with the NBC Network that extends and renews all of Gray’s NBC network affiliations, which otherwise would have expired at year-end 2023.  Gray owns and operates NBC affiliated television stations serving 56 markets.  In the current 2023-24 television season, NBC is the #1 network and ranks first in all key demos, as well as first in primetime, morning/afternoon news, late night, primetime sports, scripted and alternative program categories.

Gray Television, Inc. is a multimedia company headquartered in Atlanta, Georgia. Gray is the nation’s largest owner of top-rated local television stations and digital assets in the United States. Its television stations serve 113 television markets that collectively reach approximately 36 percent of US television households.  This portfolio includes 80 markets with the top-rated television station and 102 markets with the first and/or second highest rated television station. It also owns video program companies Raycom Sports, Tupelo Media Group, and PowerNation Studios, as well as the studio production facilities Assembly Atlanta and Third Rail Studios. Gray owns a majority interest in Swirl Films. For more information, please visit www.gray.tv.

Gray Contacts

Pat LaPlatney, President and Co-Chief Executive Officer, 334-206-1400

Kevin P. Latek, Executive Vice President, Chief Legal and Development Officer, 404-266-8333

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FAQ

What is the agreement reached by Gray Television, Inc. (NYSE: GTN) with the NBC Network?

Gray Television, Inc. (NYSE: GTN) has reached an agreement with the NBC Network to extend and renew all of its NBC network affiliations, which otherwise would have expired at year-end 2023.

How many television markets does Gray Television, Inc. (NYSE: GTN) serve?

Gray Television, Inc. (NYSE: GTN) serves 113 television markets in the United States.

What percentage of US television households does Gray Television, Inc. (NYSE: GTN) reach?

Gray Television, Inc. (NYSE: GTN) collectively reaches approximately 36 percent of US television households.

What is the current position of NBC in the 2023-24 television season?

In the current 2023-24 television season, NBC is the #1 network and ranks first in all key demos, as well as first in primetime, morning/afternoon news, late night, primetime sports, scripted and alternative program categories.