TEGNA’s connected TV and “over-the-top” (OTT) advertising business has just received a shot in the arm from another broadcast TV company — one that recently merged with Raycom Media.
Gray Television has acquired a minority stake in TEGNA’s Premion business, thanks to a strategic partnership announced Wednesday by the companies.
The pact allows Gray to serve as a reseller of Premion’s services across Gray’s 93 television markets.
Terms call for TEGNA and Gray to each have the right to independently sell Premion in markets where they both operate a local television station. The sale of spot television advertising is not part of this agreement, and Gray and TEGNA will continue to sell spot advertising for their respective stations without any involvement from the other party.
TEGNA will continue to oversee and control the Premion business.
The Premion platforms allows local, regional and national advertisers to reach audiences through video programming delivered across various streaming platforms and devices. According to the companies, Premion has direct relationships with upward of 125 premium branded networks, ranging from major media networks to virtual MVPDs and direct OTT aggregators.
“Since our launch of Premion in 2016, we’ve quickly scaled the product and business to capitalize on the dramatic shift of audiences to streaming television,” said TEGNA President/CEO Dave Lougee. “The Premion business exceeded $100 million in revenue in 2019, and we expect double-digit growth rates going forward. We’re seeing tremendous growth opportunities in OTT, particularly at the local level. Our partnership with Gray will further accelerate Premion’s already exceptional growth by expanding our local footprint and leveraging Gray’s strong performing stations.”
Gray President and co-CEO Pat LaPlatney, who took the role following Gray’s merger with Raycom, moving over from that now-defunct operation, added, “We have been impressed with how Premion has quickly established itself as the premier OTT advertising platform with an unrivaled, trusted brand among advertisers. We are equally excited to invest in Premion, and participate in the high growth OTT business, as well as the ability to resell Premion’s services to local advertisers in our markets.”
TEGNA operates 62 television stations in 51 markets, with 39% national reach from its broadcast TV stations. It also owns digital multicast offerings Justice Network and Quest.
Gray currently owns and/or operates television stations and leading digital properties in 93 television markets that collectively reach approximately 24 percent of US television households.