This is an important agreement, but not a surprising one. NBC’s new affiliation deal with Tegna Media, the No. 1 independent owner of the network’s affiliates, provides security for both companies as they head into a year of hefty ad sales for the election and the summer Olympics in Rio de Janeiro.
The new pact provides “one, common, long-term agreement” for the 17 NBC affiliates owned by Tegna, the group formerly part of Gannett, the companies say. Tegna offers NBC programming in cities including Denver, Phoenix, Atlanta, Minneapolis, and Cleveland.
They don’t say how long it will run, or any financial terms including how much Tegna will have to pay NBC in reverse compensation. That’s the cash that cable and satellite companies pay to retransmit a station’s signals, that’s then turned over to the networks that provide the most popular prime time shows.
Tegna’s previous agreement with NBC ran through this year. But at the end of 2013 it bought stations from Belo with NBC affiliation terms that expired at the end of 2015.
The station group has a deal with ABC running through 2018 and one with CBS through 2019.
Tegna CEO Gracia Martore told investors last month that the NBC negotiations likely would end up being “very appropriate…for both sides.”
Company President Dave Lougee added that this likely will be “a record year” due to the Olympics, “our strong new stations in multiple presidential battleground states,” as well as “a stable core ad market and continued strong digital revenue growth.”