TEGNA and NBC Renew Affiliation Agreement
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Insights
The multi-year affiliation agreement between TEGNA Inc. and NBC is a significant development in the broadcasting industry. From a market research perspective, the renewal of station affiliation agreements for 20 markets, including 10 of the top 25, is indicative of TEGNA's robust positioning within the industry. The coverage of over 21 million households, which represents nearly 17 percent of U.S. TV households, reinforces TEGNA's footprint in the national broadcast space.
Given that TEGNA is the largest independent owner of NBC affiliates, this deal solidifies its market share and could potentially enhance advertising revenue streams, leveraging NBC's high-profile content such as 'Sunday Night Football' and the Paris Olympic Games. The continued access to popular network content is likely to maintain, if not increase, viewer engagement, which is a key metric for advertisers. Therefore, this agreement can be seen as a strategic move to secure long-term revenue stability and growth for TEGNA.
Analyzing the financial implications of the renewed affiliation agreement, it's clear that the deal could be financially beneficial for TEGNA. The affiliation with a network that ranks first in all key demographics and various programming categories provides TEGNA with a competitive advantage in attracting premium advertising deals. The inclusion of high-profile events like the Olympic Games and popular shows such as 'The Voice' means that TEGNA can command higher advertising rates during these periods.
Moreover, the deal comes at a time when live sports and events are increasingly valuable for networks and affiliates due to their ability to draw live viewership in an era of time-shifted viewing habits. This could lead to a positive impact on TEGNA's stock performance as investors may view the deal as a catalyst for future revenue growth, especially considering the cyclical nature of advertising revenue tied to events such as elections and the Olympics.
From a media industry standpoint, the agreement between TEGNA and NBC is a testament to the importance of local broadcasting rights in the era of streaming and digital media. While digital platforms continue to grow, the deal underlines the enduring value of traditional broadcast television, especially for local news, weather, sports and network programming. The strategic importance of such agreements is underscored by the fact that they secure carriage rights for coveted content, which remains a cornerstone for affiliate broadcasters like TEGNA.
This renewal also demonstrates the symbiotic relationship between national networks and their affiliates, as local stations provide the networks with extensive reach and in return, the networks supply a slate of content that attracts viewership. The inclusion of digital rights in such agreements is becoming increasingly common, ensuring that TEGNA stations can capitalize on multi-platform content distribution, which is critical as viewing habits shift towards digital consumption.
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“As the largest NBC affiliate group among independent station groups, we are proud of our longstanding partnership that enables us to serve local communities,” said Dave Lougee, president and CEO, TEGNA. “This new multi-year agreement allows our stations to continue providing consumers and advertisers with premium network content such as TODAY, Sunday Night Football and this summer’s Paris Olympic Games alongside our award-winning local news, weather and sports.”
“TEGNA continues to be an important partner to NBC, bringing our loved, must-see programming to top markets across the United States,” said Philip Martzolf, President, NBC Affiliate Relations. “This renewal comes at the perfect time as NBC returns to primetime with midseason programming this week, as well as prepares for two of TV’s biggest moments in the election and Summer Olympics later this year.”
The new agreement includes full carriage of the NBC broadcast network, including “TODAY,” “NBC Nightly News with Lester Holt,” “Sunday Night Football,” the Summer and Winter Olympic Games, “The Voice,” “The Tonight Show Starring Jimmy Fallon” and more. 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.
The agreement includes renewals for these TEGNA-owned NBC affiliates: WXIA in
About TEGNA
TEGNA Inc. (NYSE: TGNA) is an innovative media company that serves the greater good of our communities. Across platforms, TEGNA tells empowering stories, conducts impactful investigations, and delivers innovative marketing solutions. With 64 television stations in 51 U.S. markets, TEGNA is the largest owner of top 4 network affiliates in the top 25 markets among independent station groups, reaching approximately 39 percent of all television households nationwide. TEGNA also owns leading multicast networks True Crime Network and Quest. TEGNA offers innovative solutions to help businesses reach consumers across television, digital and over-the-top (OTT) platforms, including Premion, TEGNA’s OTT advertising service. For more information, visit www.TEGNA.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240103756141/en/
For media inquiries, contact:
Anne Bentley
Vice President and Chief Communications Officer
703-873-6366
abentley@TEGNA.com
For investor inquiries, contact:
Julie Heskett
Senior Vice President and Chief Financial Officer
703-873-6747
investorrelations@TEGNA.com
For NBCUniversal media inquiries, contact:
Pat Bunting
Corporate Communications
201-815-9733
pat.bunting@nbcuni.com
Source: TEGNA Inc.
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