PARAMOUNT GLOBAL AND NEXSTAR MEDIA RENEW AFFILIATION AGREEMENTS

Rhea-AI Summary

Nexstar Media Group (NASDAQ: NXST) and Paramount Global (NASDAQ: PARA, PARAA) have announced a multi-year renewal of CBS Television Network affiliations for 42 markets. This agreement covers 40 stations owned by Nexstar and 2 owned by Mission Broadcasting, reaching 15% of the U.S. audience and serving nearly 19 million television households.

Additionally, two Paramount-owned independent stations in Miami (WBFS-TV) and Detroit (WKBD-TV) will become affiliates of The CW Network on September 1, 2024. These stations will begin broadcasting the network's news, primetime entertainment, live sports, and special event programming.

The financial terms of these agreements were not disclosed.

Positive

• Multi-year renewal of CBS affiliations in 42 markets, covering 15% of U.S. audience
• Expansion of The CW Network to two major markets (Miami and Detroit)

Negative

• None.

Insights

Media Industry Analyst

This renewal of affiliation agreements between Paramount Global and Nexstar Media is a significant development in the broadcasting landscape. The deal, covering 42 markets and reaching 15% of the U.S. audience, underscores the continued importance of traditional network-affiliate relationships in an era of streaming dominance.

The inclusion of Mission Broadcasting in this agreement is noteworthy, as it highlights the complex ownership structures within the industry. This partnership allows Nexstar to effectively expand its reach without directly owning all stations, a strategy that has become increasingly common to navigate regulatory constraints.

Perhaps the most intriguing aspect of this deal is the transition of Paramount-owned stations in Miami and Detroit to CW Network affiliates. This move suggests a strategic realignment of Paramount's assets, potentially to streamline operations or to better position these stations in their respective markets. It's a reminder that even major media conglomerates are continuously adjusting their portfolios to optimize performance.

While financial terms weren't disclosed, these types of agreements typically involve substantial revenue-sharing arrangements. For Nexstar, this deal likely secures a significant portion of its future revenue stream, providing stability in an otherwise volatile media landscape. For Paramount, it ensures continued broad distribution for CBS content, which remains important for advertising revenue and overall brand presence.

Investors should view this as a neutral to slightly positive development for both companies. It represents continuity in their business models and demonstrates their ability to maintain mutually beneficial partnerships in a rapidly evolving industry.

Financial Analyst

From a financial perspective, this agreement carries several implications for both Paramount Global and Nexstar Media. While specific financial terms weren't disclosed, we can infer some potential impacts:

• For Nexstar, renewing CBS affiliations in 42 markets secures a significant revenue stream. CBS programming, particularly sports and primetime content, typically drives strong advertising sales for local affiliates.
• The multi-year nature of the agreement provides Nexstar with predictable cash flows, which is valuable for financial planning and potentially for securing favorable terms on any future debt financing.
• For Paramount, this deal ensures continued broad distribution of CBS content, which is important for maintaining the network's national advertising rates.
• The transition of Paramount-owned stations in Miami and Detroit to CW affiliates could potentially result in cost savings, as the CW typically requires less investment in original programming compared to operating independent stations.

It's worth noting that this deal comes at a time when both traditional broadcasters and media conglomerates are facing challenges from streaming services. By solidifying their partnership, Paramount and Nexstar are better positioned to navigate these industry headwinds.

Investors should view this agreement as a stabilizing factor for both companies' near-term financial outlooks. However, the long-term implications will depend on how effectively they can leverage these traditional broadcasting assets in an increasingly digital media landscape.

Multi-Year Renewal Covers CBS Affiliated Television Stations in 42 Markets Owned by Nexstar and Mission Broadcasting, Inc.

Paramount-owned Stations in Miami and Detroit To Become CW Network Affiliates on September 1

IRVING, Texas and NEW YORK, July 30, 2024 /PRNewswire/ -- Nexstar Media Group, Inc. (NASDAQ: NXST) (Nexstar) and Paramount Global (NASDAQ: PARA, PARAA) (Paramount) today announced that Nexstar and its operating partner, Mission Broadcasting, Inc. (Mission), have reached comprehensive multi-year agreements to renew CBS Television Network affiliations in 42 markets across the country, including 40 stations owned by Nexstar and two stations owned by Mission. Together, the 42 stations reach 15% of the U.S. audience, serving nearly 19 million television households. 

In addition, two Paramount-owned independent stations in Miami, Florida, and Detroit, Michigan, both top-20 markets, will become affiliates of The CW Network on September 1. WBFS-TV in Miami and WKBD-TV in Detroit will begin carrying the network's news, primetime entertainment, live sports, and special event programming at that time.

Financial terms were not disclosed.

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 310,000 hours of programming produced annually by its business units. Nexstar owns America's largest local television broadcasting group comprised of top network affiliates, with 200 owned or partner stations in 116 U.S. markets reaching 220 million people. Nexstar's national television properties include The CW, America's fifth major broadcast network, NewsNation, our national news network providing "News for All America," 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.

About Paramount
Paramount Global (NASDAQ: PARA, PARAA) is a leading global media, streaming and entertainment company that creates premium content and experiences for audiences worldwide. Driven by iconic consumer brands, Paramount's portfolio includes CBS, Paramount Pictures, Nickelodeon, MTV, Comedy Central, BET, Paramount+ and Pluto TV. Paramount holds one of the industry's most extensive libraries of TV and film titles. In addition to offering innovative streaming services and digital video products, the company provides powerful capabilities in production, distribution, and advertising solutions.

For more information about Paramount, please visit www.paramount.com and follow @ParamountCo on social platforms.

 

 

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SOURCE Paramount Global

FAQ

How many markets are covered in the CBS affiliation renewal between Paramount Global and Nexstar Media?

The CBS affiliation renewal covers 42 markets across the country, including 40 stations owned by Nexstar and 2 stations owned by Mission Broadcasting.

When will Paramount-owned stations in Miami and Detroit become CW Network affiliates?

WBFS-TV in Miami and WKBD-TV in Detroit will become affiliates of The CW Network on September 1, 2024.

What percentage of the U.S. audience do the renewed CBS affiliations reach?

The 42 stations involved in the CBS affiliation renewal reach 15% of the U.S. audience, serving nearly 19 million television households.

Were the financial terms of the affiliation agreements between Paramount Global (PARA) and Nexstar Media disclosed?

No, the financial terms of the affiliation agreements were not disclosed in the press release.