Gray Television Statement on Newly Announced Streaming Service

Rhea-AI Summary

Gray Television, Inc. responds to inquiries about a proposed new streaming service by Disney, Fox, and Warner Bros. Discovery, Inc. The service would include live signals of local affiliates of ABC and Fox broadcast networks, potentially expanding the pay-TV ecosystem and offering benefits to viewers, local communities, and local broadcasters.

Market Research Analyst

The introduction of a new live streaming service that includes local affiliates of major networks such as ABC and Fox could significantly alter the competitive landscape of the pay-TV industry. This move may attract a new segment of consumers, particularly sports fans who currently do not subscribe to traditional pay-TV services. The strategy to target this audience suggests a shift in focus towards niche markets within the streaming domain, possibly in response to the saturation of the general streaming market.

For local broadcasters like Gray Television, this development could mean increased viewership and advertising revenue. The inclusion of local sports and news in the streaming service broadens the appeal to a local audience, potentially leading to higher engagement rates. Furthermore, the collaboration with major networks could provide local stations with additional resources, enhancing their content quality and delivery capabilities.

However, the success of this initiative depends on several factors, such as pricing, content exclusivity and the ability to provide a seamless streaming experience. It is crucial to monitor the adoption rate post-launch and the impact on traditional pay-TV subscriptions to gauge the long-term implications for local broadcasters and the broader industry.

Financial Analyst

The announcement of a new streaming service involving Disney, Fox and Warner Bros. Discovery represents a potential growth opportunity for Gray Television. The market's reaction to this news will likely hinge on the perceived value of integrating local broadcasting into a streaming platform that focuses on sports programming. This could lead to a diversification of revenue streams for Gray, particularly if the service gains traction among cord-cutters and younger demographics.

Investors should consider the potential for increased content licensing fees, subscriber growth and advertising revenue. However, risks include execution challenges and the possibility of increased competition from other local broadcasters seeking to join similar ventures. The financial performance of Gray Television could be positively influenced if the service successfully captures a significant portion of the non-pay-TV sports audience, but this will depend on the terms of the partnership and the effectiveness of the service's market penetration strategies.

Legal Expert

In the context of the proposed streaming service, there are several legal and regulatory considerations that could affect Gray Television and its stakeholders. The inclusion of local affiliates in a streaming platform raises questions about retransmission consent agreements, intellectual property rights and potential changes to carriage fees. The legal framework governing these aspects will be critical in determining how local broadcasters like Gray can monetize their content on the new service.

Moreover, there could be antitrust implications given the collaboration between major media corporations. The structure of the partnership and the service's operations will need to comply with existing regulations to avoid legal challenges. It is important for stakeholders to monitor how these legal factors unfold, as they could significantly influence the business model and revenue potential of the new streaming service.

ATLANTA, Feb. 07, 2024 (GLOBE NEWSWIRE) -- Gray Television, Inc. (“Gray”) (NYSE: GTN) issued the following statement today in response to numerous inquiries from stakeholders regarding the proposed new streaming service that The Walt Disney Company (“Disney”), Fox Corporation (“Fox”) and Warner Bros. Discovery, Inc. (“WBD”) announced yesterday:

The potential launch of a new live streaming service from Disney, Fox, and WBD that would include the live signals of the local affiliates of the ABC and Fox broadcast networks owned by local broadcasters such as Gray as well as those companies’ sports-focused cable channels could be a significant opportunity to expand the pay-TV ecosystem.

Local affiliated stations not only carry nationally televised sports but also provide local sports coverage, local news and weather, local jobs and extensive community service. We believe that including ABC and Fox stations in a new virtual multichannel video programming service could offer benefits to viewers, their local communities, and local broadcasters. Local affiliates and their audiences could also benefit if the venture provides additional resources and scale that enables the venture to compete successfully and expand the sports programming available on the ABC and Fox broadcast networks and the affiliates of those networks.

Finally, we understand that the proposed new streaming service is expected to target sports fans who do not currently subscribe to a pay-TV package, complementing the wider programming offerings available from existing pay-TV providers. Gray welcomes any venture that expands the reach of local broadcasting stations, which in turn supports the ability of local stations to maintain trusted local news operations that benefit everyone.

About Gray:

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. Gray 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.

Cautionary Statements for Purposes of the “Safe Harbor” Provisions of the Private Securities Litigation Reform Act

This press release contains certain forward-looking statements that are based largely on Gray’s current expectations and reflect various estimates and assumptions by Gray. These statements are statements other than those of historical fact, and may be identified by words such as “estimates,” “expect,” “anticipate,” “will,” “implied,” “assume” and similar expressions. Forward-looking statements are subject to certain risks, trends and uncertainties that could cause actual results and achievements to differ materially from those expressed in such forward-looking statements. Such risks, trends and uncertainties, which in some instances are beyond Gray’s control, include Gray’s current expectations and beliefs regarding the recently announced streaming service, including the benefits of such service, and other future events. Gray is subject to additional risks and uncertainties described in Gray’s quarterly and annual reports filed with the Securities and Exchange Commission from time to time, including in the “Risk Factors,” and management’s discussion and analysis of financial condition and results of operations sections contained therein, which reports are made publicly available via its website, www.gray.tv. Any forward-looking statements in this communication should be evaluated in light of these important risk factors. This press release reflects management’s views as of the date hereof. Except to the extent required by applicable law, Gray undertakes no obligation to update or revise any information contained in this communication beyond the date hereof, whether as a result of new information, future events or otherwise.

Gray Contact:

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

What is the ticker symbol for Gray Television, Inc.?

The ticker symbol for Gray Television, Inc. is GTN.

What is the proposed new streaming service announced by Disney, Fox, and WBD?

The proposed new streaming service would include the live signals of local affiliates of the ABC and Fox broadcast networks owned by local broadcasters such as Gray as well as those companies’ sports-focused cable channels.

Who are the companies involved in the proposed new streaming service?

The companies involved are The Walt Disney Company, Fox Corporation, and Warner Bros. Discovery, Inc.

What are the potential benefits of the new streaming service?

The service could offer benefits to viewers, their local communities, and local broadcasters by expanding the pay-TV ecosystem and providing additional resources and scale to compete successfully and expand sports programming.

Who would the proposed new streaming service target?

The service is expected to target sports fans who do not currently subscribe to a pay-TV package, complementing the wider programming offerings available from existing pay-TV providers.

What is Gray Television, Inc.'s stance on the proposed new streaming service?

Gray Television, Inc. welcomes any venture that expands the reach of local broadcasting stations, supporting the ability of local stations to maintain trusted local news operations that benefit everyone.