Nexstar Media Enters Into Time Brokerage Agreement With KAZT-TV in Phoenix, Arizona

Rhea-AI Summary

Nexstar Media Group, Inc. (NASDAQ: NXST) has entered into a multi-year time brokerage agreement with KAZT-TV in Phoenix, Arizona, the nation’s 11th largest television market. KAZT-TV will become an affiliate of The CW Network on February 1, providing viewers with LIV Golf, ACC college football and basketball, WWE NXT, and NASCAR Xfinity Series Racing. Nexstar will provide programming and other services to strengthen the station’s relationship with the local community. The agreement expands Nexstar's presence to ten of the 15 largest TV markets in the U.S., and 18 of the top 25.

Insights

Media Industry Analyst

The strategic partnership between Nexstar Media Group and KAZT-TV, marked by the time brokerage agreement, signals a significant move within the media landscape, especially considering the Phoenix market's ranking as the 11th largest in the United States. This affiliation with The CW Network could potentially enhance Nexstar's advertising revenue due to the inclusion of high-demand sports and entertainment content such as LIV Golf, ACC college sports, WWE NXT and future NASCAR Xfinity Series Racing.

By expanding its footprint to include ten of the top fifteen TV markets, Nexstar is poised to leverage economies of scale and bargaining power when negotiating with advertisers and content providers. This expansion could also lead to increased market share and a stronger competitive position, potentially impacting the company's stock performance positively as investors often look favorably upon growth and increased market presence.

Financial Analyst

While the financial terms of the Nexstar-KAZT-TV agreement remain undisclosed, the deal's structure as a time brokerage agreement suggests Nexstar's commitment to cost management by avoiding outright acquisition costs. This arrangement typically involves the broker (Nexstar) handling advertising sales and other operational aspects in exchange for a fee or a share of the advertising revenue, which could lead to a more variable cost structure and potentially higher margins if managed effectively.

Investors should note the potential for this agreement to contribute to Nexstar's top-line growth. The company's strategic presence in key markets ahead of the Presidential election cycle could attract political advertising dollars, which are known to surge during election periods. The long-term benefits may include sustained revenue from new advertising clients and partnerships established through the enhanced content offerings of KAZT-TV.

Advertising and Marketing Expert

The decision to affiliate KAZT-TV with The CW Network aligns with current trends in the advertising industry, where live sports and entertainment are premium content categories. These genres offer a dual benefit: high viewer engagement and the ability to attract a diverse range of advertisers seeking to capitalize on the live event viewership that is less susceptible to ad-skipping behaviors common in recorded programming.

Furthermore, the timing of the agreement allows Nexstar to capitalize on the upcoming Presidential election, as battleground states like Arizona typically experience a surge in political advertising spend. The enhanced programming slate could attract a broader audience demographic, providing advertisers with access to valuable target segments. This could lead to increased ad rates and a more robust advertising portfolio for Nexstar.

KAZT-TV to Become Affiliate of The CW Network on February 1

Multi-Year Agreement Provides Nation’s Leading Local TV Broadcaster with a Partner in the Country’s 11^th Largest Television Market

IRVING, Texas--(BUSINESS WIRE)-- Nexstar Media Group, Inc. (NASDAQ: NXST) today announced that it has entered into a multi-year time brokerage agreement with KAZT-TV in Phoenix, Arizona, the nation’s 11^th largest television market. On February 1, KAZT-TV will become an affiliate of The CW Network, home to LIV Golf, ACC college football and basketball, WWE NXT beginning this fall and NASCAR Xfinity Series Racing in 2025. Financial terms of the agreement were not disclosed.

Under terms of the agreement, Nexstar will provide KAZT-TV with programming and other services to strengthen the station’s relationship with the local community, including management of its sales, promotion, marketing, and technical operations. As a result of the agreement, Nexstar will own or provide services to local television stations in ten of the 15 largest TV markets in the U.S., and 18 of the top 25.

“We’re pleased to enter into this agreement with KAZT-TV, especially since Arizona will once again be a battleground state in this year’s Presidential election,” said Andrew Alford, President of Nexstar’s broadcasting division. “We’re looking forward to helping KAZT-TV expand its service to Phoenix-area viewers and forge an even deeper connection to the community. We know that adding the live sports and entertainment programming of The CW Network will enable KAZT-TV to establish new and meaningful relationships with a variety of advertising and marketing clients.”

About Nexstar Media Group, Inc.

Nexstar Media Group, Inc. (NASDAQ: NXST) is a leading diversified media company that produces and distributes engaging local and national news, sports and entertainment content across its television and digital platforms, including more than 300,000 hours of programming produced annually by its business units. Nexstar owns America’s largest local broadcasting group comprised of top network affiliates, with 200 owned or partner stations in 116 U.S. markets reaching 212 million people. Nexstar’s national television properties include The CW, America’s fifth major broadcast network, NewsNation, America’s fastest-growing national cable news network, popular entertainment multicast networks Antenna TV and Rewind TV, and a 31.3% ownership stake in TV Food Network. The Company’s portfolio of digital assets, including its local TV station websites, The Hill and NewsNationNow.com, are collectively a Top 10 U.S. digital news and information property. For more information, please visit nexstar.tv.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240105111257/en/

Media Contact:

Gary Weitman

EVP & Chief Communication Officer

Nexstar Media Group, Inc.

972/373-8800 or gweitman@nexstar.tv

Investor Contact:

Joseph Jaffoni or Jennifer Neuman

JCIR, Inc.

212/835-8500 or nxst@jcir.com

Source: Nexstar Media Group, Inc.

FAQ

What is the multi-year time brokerage agreement about between Nexstar Media Group, Inc. and KAZT-TV?

The multi-year time brokerage agreement allows KAZT-TV to become an affiliate of The CW Network, bringing live sports and entertainment programming to Phoenix-area viewers.

What live sports and entertainment programming will KAZT-TV provide as an affiliate of The CW Network?

KAZT-TV will offer LIV Golf, ACC college football and basketball, WWE NXT, and NASCAR Xfinity Series Racing.

How will Nexstar Media Group, Inc. strengthen its relationship with the local community through this agreement?

Nexstar will provide programming and other services to KAZT-TV, including management of its sales, promotion, marketing, and technical operations.

What is the significance of this agreement for Nexstar Media Group, Inc.?

The agreement expands Nexstar's presence to ten of the 15 largest TV markets in the U.S., and 18 of the top 25, strengthening its position in the television broadcasting industry.