Gray Television, Inc. (GTN): Business Model Canvas [11-2024 Updated]
- ✓ Fully Editable: Tailor To Your Needs In Excel Or Sheets
- ✓ Professional Design: Trusted, Industry-Standard Templates
- ✓ Pre-Built For Quick And Efficient Use
- ✓ No Expertise Is Needed; Easy To Follow
Gray Television, Inc. (GTN) Bundle
Gray Television, Inc. (GTN) stands out in the media landscape with its robust business model that effectively combines local broadcasting with innovative digital strategies. With a presence in 113 television markets, GTN leverages key partnerships and activities to deliver high-quality news and entertainment while maximizing advertising revenues. Explore how their business model canvas outlines the intricate framework that drives their success in the competitive media industry.
Gray Television, Inc. (GTN) - Business Model: Key Partnerships
Collaborations with major networks (NBC, CBS)
Gray Television has strategic partnerships with major networks, including NBC and CBS, which are crucial for content distribution and viewership. In the nine-month period ended September 30, 2024, Gray generated approximately $1.1 billion in core advertising revenue, with significant contributions from its NBC and CBS affiliated stations. Notably, $20 million of advertising revenue was attributed to the broadcast of the 2024 Olympic Games on NBC channels.
Partnerships with advertising agencies
Gray Television collaborates with multiple advertising agencies to enhance its advertising revenue. In the nine-month period ended September 30, 2024, advertising agency intermediaries contributed approximately $934 million, representing a notable increase from $753 million in the prior year.
Relationships with local businesses for advertising
Gray Television actively engages with local businesses to secure advertising contracts. This local engagement is essential for driving advertising revenue, which totaled approximately $2.6 billion for the nine-month period ended September 30, 2024. The company focuses on tailored advertising solutions to meet the specific needs of local advertisers, contributing to its core advertising revenue.
Strategic alliances with digital marketing firms
Gray Television has formed strategic alliances with digital marketing firms to expand its digital advertising capabilities. The company owns Gray Digital Media, a full-service digital agency, which enhances its offerings in digital marketing strategies. This segment contributed $68 million in revenue for the nine-month period ended September 30, 2024, up from $54 million the previous year.
Engagements with production companies for content creation
Gray Television collaborates with production companies to create high-quality content. Its production segment, including facilities like Assembly Atlanta, generated $68 million in revenue for the nine-month period ended September 30, 2024, reflecting a $14 million increase year-over-year. These partnerships not only enhance content quality but also provide additional revenue streams through the production of television shows and commercials.
| Partnership Type | Key Partners | Revenue Contribution (9M 2024) | Year-over-Year Change |
|---|---|---|---|
| Major Networks | NBC, CBS | $1.1 billion | Increased due to Olympic Games |
| Advertising Agencies | Multiple Agencies | $934 million | Increase from $753 million |
| Local Businesses | Various Local Advertisers | $2.6 billion | Consistent growth |
| Digital Marketing Firms | Gray Digital Media | $68 million | Increased from $54 million |
| Production Companies | Assembly Atlanta | $68 million | Increased from $54 million |
Gray Television, Inc. (GTN) - Business Model: Key Activities
Broadcasting and streaming television content
Gray Television operates 113 television stations across the United States, reaching approximately 36% of U.S. television households. This extensive network includes top-rated stations in 77 markets and the largest Telemundo affiliate group, serving nearly 1.5 million Hispanic households. For the nine months ended September 30, 2024, the broadcasting segment generated revenue of $2.531 billion.
Selling advertising slots on various platforms
Advertising is a significant revenue stream for Gray Television, contributing to approximately 43% of total revenues in the nine months ended September 30, 2024. Core advertising revenue for this period was $1.110 billion, with political advertising revenue reaching $247 million, reflecting a substantial increase of 437% compared to the previous year. The company reported total advertising revenue of $1.357 billion during the same timeframe.
Producing original content through subsidiaries
Gray Television's production segment, which includes subsidiaries like Assembly Atlanta, generated $68 million in revenue for the nine months ended September 30, 2024, marking a 26% increase from $54 million in the prior year. The company is expanding its original content production capabilities to bolster its offerings across its broadcasting platforms.
Managing retransmission consent agreements
Retransmission consent fees are another critical revenue source, accounting for 43% of total revenue. For the nine months ended September 30, 2024, retransmission consent revenue was $1.121 billion, down from $1.167 billion in the previous year. This revenue stream is impacted by subscriber numbers and rate adjustments, highlighting the importance of effective management of these agreements.
Operating digital media and online platforms
Gray Television operates various digital media and online platforms, enhancing its advertising capabilities. The company generated $2.599 billion in total revenue for the nine months ended September 30, 2024, an increase of 8% from $2.417 billion in the same period of 2023. This growth reflects the successful integration of digital strategies into its overall business model, allowing for a diversified revenue stream that includes online advertising and digital content delivery.
| Key Activity | Revenue (in millions) | Percentage of Total Revenue |
|---|---|---|
| Broadcasting Revenue | $2,531 | 97.4% |
| Core Advertising Revenue | $1,110 | 43% |
| Political Advertising Revenue | $247 | 10% |
| Retransmission Consent Revenue | $1,121 | 43% |
| Production Revenue | $68 | 3% |
| Total Revenue | $2,599 | 100% |
Gray Television, Inc. (GTN) - Business Model: Key Resources
Extensive portfolio of local television stations
Gray Television, Inc. operates 113 television stations across the United States, reaching approximately 36% of U.S. television households. This portfolio includes 77 markets with the top-rated television station and 100 markets with the first and/or second highest-rated television station. Gray also has the largest Telemundo Affiliate group, covering 43 markets with nearly 1.5 million Hispanic TV households.
Skilled workforce, including journalists and production teams
Gray Television employs a skilled workforce that includes journalists, production teams, and technical staff. The company continues to prioritize hiring and retaining talented personnel to ensure high-quality news and entertainment programming.
Advanced broadcasting and production technology
Gray invests in advanced broadcasting and production technology. The company operates state-of-the-art facilities including Assembly Atlanta and Third Rail Studios, which support its production capabilities. As of September 30, 2024, Gray's capital expenditures amounted to $103 million, reflecting its commitment to maintaining and upgrading its technological resources.
Strong brand presence in the media industry
Gray Television has established a strong brand presence within the media industry, recognized for delivering high-quality local news and entertainment. The company’s reputation is bolstered by its extensive network of local stations and its strategic partnerships with major broadcasting networks, enhancing its visibility and attractiveness to advertisers.
Financial resources from advertising and retransmission revenues
In the nine months ended September 30, 2024, Gray Television generated total revenue of $2.6 billion, an increase of 8% from the previous year. Key revenue components include:
| Revenue Type | Three Months Ended September 30, 2024 (in millions) | Three Months Ended September 30, 2023 (in millions) | Nine Months Ended September 30, 2024 (in millions) | Nine Months Ended September 30, 2023 (in millions) |
|---|---|---|---|---|
| Core Advertising | $365 | $363 | $1,110 | $1,099 |
| Political Advertising | $173 | $26 | $247 | $46 |
| Retransmission Consent | $369 | $378 | $1,121 | $1,167 |
| Production Companies | $26 | $20 | $68 | $54 |
| Other Revenues | $17 | $16 | $53 | $51 |
| Total Revenue | $950 | $803 | $2,599 | $2,417 |
In the same period, Gray reported an operating income of $526 million, with operating expenses totaling $2.073 billion.
Gray Television, Inc. (GTN) - Business Model: Value Propositions
High-quality, local news and entertainment programming
Gray Television, Inc. is recognized for its commitment to delivering high-quality local news and entertainment programming. The company owns and operates 113 television stations that serve approximately 36 percent of U.S. television households. This local focus is critical as it enables the company to address specific community interests and needs effectively.
Broad reach across 113 television markets
Gray Television has a substantial footprint across the United States, with its stations located in 113 television markets. This broad reach allows the company to capture a diverse audience, making it a significant player in local broadcasting. The portfolio includes 77 markets with the top-rated television station and 100 markets with the first or second highest rated television station.
Diverse advertising options (TV, digital, political)
Gray Television provides a wide array of advertising options which include traditional TV advertising, digital advertising on its websites and mobile apps, and political advertising. For the nine months ended September 30, 2024, the company's revenue from core advertising was $1.11 billion, while political advertising accounted for 10% of total advertising revenue, amounting to $247 million. This diversity in advertising solutions enhances its value proposition to advertisers looking for comprehensive marketing strategies.
Reliable and trusted news source for local communities
Gray Television's stations are viewed as reliable and trusted news sources within their communities. The company emphasizes local journalism, which fosters strong viewer loyalty and engagement. This trust is critical, especially in a media landscape where consumers seek credible information sources. The company has further solidified its reputation by producing local newscasts in all existing markets, including smaller ones.
Competitive pricing for advertising and sponsorships
Gray Television offers competitive pricing for advertising and sponsorship opportunities, making it an attractive option for businesses of all sizes. The company’s broadcast advertising rates are influenced by factors such as program popularity and audience demographics. In the nine months ending September 30, 2024, total revenues (less agency commissions) reached $2.6 billion, reflecting the effectiveness of its pricing strategy and market positioning.
| Advertising Revenue Type | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) | Percentage of Total Revenue |
|---|---|---|---|
| Core Advertising | $365 | $363 | 38% |
| Political Advertising | $173 | $26 | 18% |
| Retransmission Consent Fees | $369 | $378 | 39% |
| Production Companies | $26 | $20 | 3% |
| Other | $17 | $16 | 2% |
| Total | $950 | $803 | 100% |
Gray Television, Inc. (GTN) - Business Model: Customer Relationships
Direct engagement with clients for advertising needs
Gray Television, Inc. (GTN) engages directly with clients to fulfill their advertising needs, contributing significantly to their revenue streams. In the nine months ended September 30, 2024, core advertising revenue reached $1.11 billion, accounting for approximately 43% of the total revenue. This direct engagement is facilitated through various channels, including in-person meetings and digital communication platforms.
Support services for advertisers to optimize campaigns
GTN provides extensive support services to advertisers aimed at optimizing their campaigns. This includes data analysis, audience targeting, and performance tracking. The company’s digital agency, Gray Digital Media, enhances these services by offering advanced digital marketing strategies to national and local clients, thereby improving the overall effectiveness of advertising campaigns.
Community involvement through local events and news coverage
Gray Television emphasizes community involvement, which strengthens its relationships with local advertisers. The company's television stations actively participate in local events and provide news coverage that resonates with the community. This local focus not only enhances brand loyalty but also attracts advertisers looking to connect with specific demographics. In the nine months ended September 30, 2024, political advertising revenue surged to $247 million due to increased local engagement during the election cycle.
Feedback mechanisms via digital platforms and social media
GTN leverages digital platforms and social media to gather feedback from both viewers and advertisers. This interaction allows the company to adapt its offerings and improve services based on client needs. In the nine months ended September 30, 2024, total revenue derived from digital advertising was approximately $2.6 billion, reflecting the importance of these channels in modern advertising strategies.
Long-term partnerships with key advertisers and agencies
Gray Television maintains long-term partnerships with key advertisers and agencies, which is critical for sustaining revenue growth. The company’s strategy includes fostering these relationships to provide consistent advertising opportunities across its multiple television stations. In the nine months ended September 30, 2024, GTN reported total revenue of $2.6 billion, with a significant portion attributed to long-standing partnerships.
| Type of Revenue | Amount (in millions) | Percentage of Total Revenue |
|---|---|---|
| Core Advertising | $1,110 | 43% |
| Political Advertising | $247 | 10% |
| Retransmission Consent | $1,121 | 43% |
| Production Companies | $68 | 3% |
| Other | $53 | 1% |
| Total Revenue | $2,599 | 100% |
As of September 30, 2024, Gray Television's revenue model reflects a diverse range of income streams, with a strong emphasis on core advertising and retransmission consent fees, which collectively account for 86% of total revenue.
Gray Television, Inc. (GTN) - Business Model: Channels
Over-the-air television broadcasts
Gray Television operates a significant number of television stations across the United States, reaching approximately 36% of U.S. television households. As of September 30, 2024, the broadcasting segment reported revenues of $2.531 billion, which represents a substantial portion of their total revenue of $2.599 billion for the nine-month period ending on that date.
Digital platforms (websites, mobile apps)
Gray Television has enhanced its digital presence through various websites and mobile applications, providing content and advertising opportunities. The digital segment contributed to overall revenue growth, with production company revenue increasing by 30% to $26 million in Q3 2024 due to operations at Assembly Atlanta.
Social media channels for audience engagement
Gray actively engages its audience through social media platforms, enhancing viewer interaction and promoting content. While specific revenue from social media engagement is not directly reported, the increase in political advertising revenue by 565% in Q3 2024, reaching $173 million, indicates a successful integration of digital strategies.
Direct sales teams for advertising contracts
Gray Television employs direct sales teams to secure advertising contracts, which are crucial for generating revenue. Core advertising revenue for the nine-month period was $1.110 billion, reflecting a 1% increase compared to the previous year.
Third-party advertising networks for wider reach
In addition to direct sales, Gray utilizes third-party advertising networks to expand its reach. Retransmission consent revenue, a critical revenue stream, accounted for $1.121 billion, making up 43% of total revenue.
| Channel Type | Revenue Contribution (2024) | Growth Rate |
|---|---|---|
| Over-the-air broadcasts | $2.531 billion | N/A |
| Digital platforms | $26 million (production revenue) | 30% |
| Political advertising | $173 million | 565% |
| Core advertising | $1.110 billion | 1% |
| Retransmission consent | $1.121 billion | -4% |
Gray Television, Inc. (GTN) - Business Model: Customer Segments
Local advertisers seeking regional exposure
Gray Television serves a diverse range of local advertisers aiming for regional visibility. In 2024, core advertising revenue rose to $1.11 billion, attributed in part to local businesses leveraging broadcast platforms to reach targeted demographics. Local advertising represents a significant portion of the revenue generated from their extensive network of television stations across 113 markets, which collectively reach approximately 36% of U.S. TV households.
National brands targeting specific markets
National brands utilize Gray Television's market reach to penetrate specific geographic areas. In the nine months ended September 30, 2024, national advertising contributed significantly to the $2.6 billion total revenue. The company’s 54 CBS channels broadcasted events like the Super Bowl, generating $18 million in advertising revenue. This targeted approach allows national brands to tailor their messaging based on local market characteristics, enhancing engagement and effectiveness.
Political candidates and parties during election cycles
Political advertising is a critical segment for Gray Television, especially during election years. In 2024, political advertising revenue surged to $247 million, marking a 437% increase. This spike is indicative of the heightened competition and spending associated with the election cycle, as candidates and parties seek to maximize their outreach through local media platforms.
Consumers looking for local news and entertainment
Consumers are a vital customer segment for Gray Television, particularly those seeking local news and entertainment. In 2024, the company’s diverse programming, including local newscasts, attracted significant viewership, contributing to an increase in core advertising revenue. The company’s commitment to producing high-quality local content fosters loyalty among viewers, which in turn attracts advertisers aiming to engage this audience.
Digital advertisers utilizing online platforms
Digital advertising is an expanding segment for Gray Television as it enhances its portfolio with digital marketing solutions. The company operates Gray Digital Media, which provides advanced digital marketing strategies for both national and local clients. In the nine months ended September 30, 2024, digital advertising revenues were part of the overall growth, reflecting the shift in advertising spend towards online platforms.
| Customer Segment | 2024 Revenue Contribution (in millions) | Percentage of Total Revenue |
|---|---|---|
| Local Advertisers | $1,110 | 43% |
| National Brands | Included in Core Advertising | Part of Total Revenue |
| Political Candidates | $247 | 10% |
| Consumers (Local News) | Included in Core Advertising | Part of Total Revenue |
| Digital Advertisers | Included in Total Revenue | Part of Total Revenue |
Gray Television, Inc. (GTN) - Business Model: Cost Structure
High fixed costs associated with broadcasting operations
Gray Television incurs significant fixed costs due to its extensive broadcasting operations. For the nine-month period ending September 30, 2024, the company's broadcasting expenses totaled approximately $1.7 billion, representing a 3% increase from the previous year.
Employee salaries and benefits for production staff
Employee compensation is a major component of Gray Television's cost structure. For the three-month period ending September 30, 2024, broadcasting payroll expenses rose by $12 million due to routine increases in compensation and the filling of vacant positions, bringing total broadcasting payroll expenses to $571 million. Additionally, corporate and administrative expenses, which also include salaries, reached $80 million for the nine-month period.
Programming and content acquisition expenses
Gray Television allocates significant resources to programming and content acquisition. The total amortization of intangible assets, which includes programming rights, was $94 million for the nine-month period ending September 30, 2024. Furthermore, costs associated with program broadcast rights amounted to $20 million during the same period.
Maintenance of broadcasting infrastructure
Maintenance costs for broadcasting infrastructure form another critical aspect of the cost structure. The company reported an increase in non-payroll expenses, which includes maintenance, by $8 million primarily due to increases in sports programming expenses. Overall, the maintenance of broadcasting infrastructure is essential to ensure operational efficiency and reliability.
Marketing and promotional expenses
Marketing and promotional expenses are vital for Gray Television to maintain its competitive position. The company has engaged in various promotional activities, contributing to an increase in corporate and administrative expenses to $80 million. Additionally, the overall marketing strategy is supported by revenue from political advertising, which saw a significant rise of $201 million, or 437%, during the nine-month period ending September 30, 2024.
| Cost Category | Q3 2024 Amount (in millions) | Q3 2023 Amount (in millions) | Change (%) |
|---|---|---|---|
| Broadcasting Payroll Expenses | 571 | 557 | 2.5 |
| Corporate and Administrative Expenses | 80 | 79 | 1.3 |
| Amortization of Intangible Assets | 94 | 147 | -36.1 |
| Program Broadcast Rights | 20 | 30 | -33.3 |
| Political Advertising Revenue Increase | 201 | 46 | 337.0 |
Gray Television, Inc. (GTN) - Business Model: Revenue Streams
Advertising revenue from television and digital platforms
For the nine months ended September 30, 2024, Gray Television reported core advertising revenue of $1.11 billion, which accounted for approximately 43% of total revenue. This was a slight increase from $1.099 billion in the same period of 2023. The advertising revenue for the third quarter of 2024 was $365 million, showing a marginal increase from $363 million in the third quarter of 2023.
Retransmission consent fees from cable and satellite providers
Retransmission consent fees generated $1.121 billion in the nine months ended September 30, 2024, which represented 43% of total revenue. This was a decrease from $1.167 billion in the same period of 2023. In the third quarter of 2024, retransmission consent revenue was $369 million, down from $378 million in the third quarter of 2023.
Income from production services and content licensing
Gray Television's production companies segment generated $68 million in revenue for the nine months ended September 30, 2024, increasing from $54 million in the same period of 2023. For the third quarter of 2024, production revenue was reported at $26 million, compared to $20 million in the third quarter of 2023.
Event sponsorships and promotional partnerships
While specific figures for event sponsorships are not detailed in the financial reports, the increase in political advertising revenue, which rose to $247 million for the nine months ended September 30, 2024 (up from $46 million in 2023), indicates a significant utilization of event sponsorships during the election cycle.
Digital advertising sales on owned media properties
Digital advertising sales are included in the overall advertising revenue figures. Gray Television's digital media revenue is part of the core advertising revenue, which saw a total of $1.11 billion for the nine months ended September 30, 2024. The company has enhanced its digital marketing strategies, aiming to capture a larger share of the growing digital advertising market.
| Revenue Stream | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) | 9M 2024 Revenue (in millions) | 9M 2023 Revenue (in millions) |
|---|---|---|---|---|
| Core Advertising | $365 | $363 | $1,110 | $1,099 |
| Political Advertising | $173 | $26 | $247 | $46 |
| Retransmission Consent | $369 | $378 | $1,121 | $1,167 |
| Production Companies | $26 | $20 | $68 | $54 |
| Other Revenue | $17 | $16 | $53 | $51 |
Updated on 16 Nov 2024
Resources:
- Gray Television, Inc. (GTN) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Gray Television, Inc. (GTN)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Gray Television, Inc. (GTN)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.