Gray Television, Inc. (GTN): Business Model Canvas [Dec-2025 Updated]

You're looking at a legacy broadcaster, but the reality of the company's model, especially heading into late 2025, is a fascinating tug-of-war: they still bank heavily on essential retransmission fees-bringing in $346 million in Q3 alone-while simultaneously pouring capital into future-proofing through digital growth and studio operations. It's a classic media pivot, balancing the massive fixed cost of local news operations (over $592 million in Q3 operating expenses) against the high-margin potential of political ad buys and new production revenue. To really see how this 113-market powerhouse, reaching 37% of US households, is structuring its cash flow and managing debt servicing costs near $450 million this year, you need to dive into the full canvas below.

Gray Television, Inc. (GTN) - Canvas Business Model: Key Partnerships

The Key Partnerships for Gray Television, Inc. (GTN) center on content distribution agreements, technology ventures, and content production facilities.

Major Network Affiliations (CBS, NBC, ABC, FOX, CW, Telemundo)

Gray Television, Inc. operates as the nation's largest owner of top-rated local television stations, with its partnership structure built around major broadcast networks.

• Gray Television, Inc. operates 180 terrestrial TV stations across 113 markets in 39 states.
• The station base collectively reaches approximately 37 percent of U.S. television households.
• Gray Television, Inc. is the largest group owner and operator of NBC-affiliated stations, totaling 64 affiliates.
• Gray Television, Inc. is the second-largest group owner and operator of ABC affiliates.
• Gray Television, Inc. owns the largest Telemundo Affiliate group with presence in 44 markets, reaching nearly 1.5 million Hispanic TV Households.
• The company renewed Fox network affiliations across 27 markets.
• Agreements with The CW Network cover 38 Gray-owned television stations, serving more than 12 million television households, representing nearly 10% of the U.S. audience.

The scale of network affiliations translates directly into retransmission revenue potential with distributors.

MVPDs/vMVPDs (Cable/Satellite/Virtual Distributors) for content carriage

Retransmission consent fees from these distributors form a critical, high-margin revenue component for Gray Television, Inc.

The forecast for 2025 Retransmission Revenue is set at $1,532 million.

EdgeBeam Wireless JV (with Nexstar, Sinclair, Scripps) for datacasting

Gray Television, Inc. is a partner in EdgeBeam Wireless, LLC, a joint venture leveraging ATSC 3.0 for wireless data transmission services.

• Partners include The E.W. Scripps Company, Nexstar Media Group, Inc., and Sinclair, Inc.
• The venture targets multiple addressable markets using the combined spectrum footprints.

Professional/Collegiate Sports Teams for local broadcast rights

Partnerships with sports leagues secure local viewership and advertising inventory.

• Gray Television, Inc. launched 9 Broadcast Sports Networks that collectively cover approximately 20% of US TV households.
• The CW affiliation renewal includes remaining the exclusive home for ACC college football and basketball, Pac-12 college football, NASCAR Xfinity Series Racing, and LIV Golf in respective markets.
• A partnership with the Atlanta Braves includes airing 10 Spring Training games exclusively on Gray TV plus additional content creation opportunities.
• Gray Television, Inc. simulcast five upcoming Memphis Grizzlies games with the team and FanDuel Sports Network.
• NHL broadcasts were expanded to 12 Affiliate Stations across Five States for select games.

Production clients utilizing Assembly Atlanta and Third Rail Studios

These studio facilities represent a diversification effort into content production and real estate revenue streams.

Gray Television, Inc. (GTN) - Canvas Business Model: Key Activities

You're looking at the core engine of Gray Television, Inc. (GTN), the day-to-day work that turns local presence into financial results. This isn't just about flipping on a transmitter; it's about content creation, sales execution, and complex contract management. Here's a breakdown of the hard numbers driving those activities as of late 2025, based on the latest reported figures.

Producing high-volume, hyper-local news and investigative content

Gray Television, Inc. operates as a multimedia company with a broadcast portfolio spanning local television stations across the United States, including in top-50 Designated Market Areas and smaller regions. The commitment here is to local journalism, which fuels the core advertising business. Digital engagement is a key performance indicator for this activity.

• Gray Television operates in more than 100 markets across the United States.
• In January 2025, web video plays were up +34% over the previous record set in December 2024.
• News app video plays showed growth of +25.8% over the previous record set in January 2024.
• The company continues to focus on producing local newscasts with local journalists and meteorologists in all existing local news markets.

Selling core and political advertising across all platforms

This is where the content gets monetized, across traditional broadcast spots, digital inventory, and the highly cyclical political advertising market. The shift to digital is a major theme, with Digital Core Ad Revenue now surpassing the core national advertising category.

Here's the quick math on recent advertising performance, using the Q3 2025 results:

What this estimate hides is the impact of the political cycle; Q3 2024 political revenue was $173 million. Also note the digital growth: Digital Core Ad Revenue grew 17% over 2023, surpassing the core national advertising category in 2024.

Negotiating retransmission consent agreements with distributors

Securing carriage fees from cable, satellite, and virtual multichannel video programming distributors (MVPDs) is a critical, high-margin revenue stream. This activity involves managing complex, multi-year agreements with major distributors.

• Retransmission revenue in Q3 2025 was $369 million, representing a 6% decrease from Q3 2023.
• Network affiliation expenses declined by 9% in the third quarter of 2025.
• The company secured ABC renewals through 2028, following the first year-over-year decrease in network affiliation fees in 2024.
• The company expects net retransmission revenue to decline slightly in the fourth quarter of 2025.

Deploying NextGenTV (ATSC 3.0) for advanced broadcasting and datacasting

This involves the transition to the IP-based ATSC 3.0 standard to enable higher quality broadcasts and new data services. Gray Television, Inc. is actively involved in this industry-wide shift.

• As of October 2024, 76% of the United States was within reach of an ATSC 3.0/NextGen TV signal.
• In February 2025, Gray leveraged NextGenTV to broadcast the Super Bowl on eight of its FOX affiliates in both Dolby Vision and HDR10+ formats.
• ATSC 3.0 technology and deployments now make datacasting and other non-video use cases realistic and near-term.
• Broadcasters are working together, targeting markets that will reach more than 80% of the public with ATSC 3.0 services.

Operating and booking large-scale studio production facilities

This activity centers on monetizing major production assets, such as Assembly Atlanta, which serves as a multi-decade cash-flow generator, especially following the resolution of industry strikes.

The company is focused on building bookings at this facility through partnerships. Finance: draft 13-week cash view by Friday.

Gray Television, Inc. (GTN) - Canvas Business Model: Key Resources

You're looking at the core assets that power Gray Media, Inc. (formerly Gray Television, Inc. as of January 1, 2025). These aren't just line items on a balance sheet; they are the actual engines generating the trailing twelve-month revenue of approximately $3.35 billion as of September 30, 2025. The value here is in the established local presence and the infrastructure built around it.

The most significant resource is the sheer geographic footprint and market dominance. This is the foundation for both traditional and digital revenue streams.

Next, you have the regulatory and technological rights that underpin the broadcast business. While the specific financial valuation of these assets isn't always broken out, their scarcity and necessity are key. These include the broadcast spectrum licenses required for over-the-air (OTA) transmission across the entire portfolio. These licenses represent a significant barrier to entry for competitors and are essential for maintaining carriage agreements.

The company has actively built out its non-broadcast production capabilities, creating distinct revenue centers. These production subsidiaries and real estate assets are designed to diversify income beyond core advertising and retransmission fees. For instance, Q3 2025 saw $25 million in revenue from production companies.

The production and studio assets are substantial:

• Raycom Sports
• Tupelo Media Group
• PowerNation Studios

The Assembly Atlanta studio complex, built on a 135-acre former General Motors site, is a major physical asset. This facility, which includes 19 sound stages, operates with an annual cost of about $90 million. Its operational success is tied to anchor tenant agreements, such as the one with NBCUniversal, which helps manage facilities. The revenue from production companies, which includes lease income from facilities like Assembly Studios, hit $105 million for the full year 2024.

Finally, the Gray Digital Media platform is a critical modern resource. This is the full-service digital agency component, offering national and local clients digital marketing strategies and products. While specific standalone revenue for this segment isn't always isolated in the top-line numbers, it is expected to drive strong growth; for example, the company anticipated strong double-digit growth in digital advertising revenue for the second quarter of 2025. This digital infrastructure is vital for monetizing the local audience reach established by the broadcast stations.

Finance: draft 13-week cash view by Friday.

Gray Television, Inc. (GTN) - Canvas Business Model: Value Propositions

You're looking at the core reasons why advertisers and communities choose Gray Television, Inc. (GTN), now operating as Gray Media, Inc. as of January 1, 2025. These are the tangible assets and market positions that define their value.

Localism: Essential, trusted local news and emergency weather coverage

Gray Media, Inc. is the largest owner of top-rated local television stations in the United States. The company owns or operates 180 terrestrial TV stations across 113 television markets in 39 states. This extensive footprint means they are the largest group owner of NBC-affiliated stations, with a total of 64 affiliates. Their station base spans from the large Atlanta market down to smaller ones like North Platte, Nebraska. The portfolio includes being the top-rated station in 78 markets and first and/or second in 99 markets.

The value proposition centers on this local depth, which is critical for emergency information delivery. For instance, in Q1 2025, total revenues were $782 million, despite it being an off-cycle political year.

Advertiser Reach: Mass-market audience reach in 113 markets

The combined reach of Gray Media's stations is substantial, collectively reaching approximately 36% to 37% of U.S. television households. This scale provides advertisers with significant audience penetration across a diverse set of local economies. The company's core advertising revenue for Q3 2025 was $355 million, showing resilience even outside major election cycles. Furthermore, their local direct business showed growth, with Q3 2024 new local direct business up almost 14% over Q3 2023.

Here's a quick look at the revenue mix from a recent on-cycle period and the latest reported quarter:

Political Targeting: Unmatched ability to target voters in key local districts

The cyclical nature of political advertising provides massive, concentrated revenue spikes. For the full-year 2024, Gray Media's portfolio earned $497 million in political advertising revenue, estimated to be the highest among its peers in total and on a per television household basis. This was driven by Q4 2024 political revenue of $250 million, a 658% increase from Q4 2023. In the subsequent off-cycle Q1 2025, political advertising revenue dropped 52% to $22 million (implied from loss context) or $13 million (exceeded guidance). By Q3 2025, political revenue had fallen 95% to $8 million.

The value here is the ability to deliver targeted voter messages across the entire local ecosystem. Gray Media's Telemundo Affiliate group is the largest, serving 44 markets, reaching nearly 1.5 million Hispanic TV Households.

Content Production: Full-service studio facilities for film/TV production

Beyond broadcast, Gray Media monetizes its physical production assets and creative teams. The company owns several video production companies and studio facilities.

• Raycom Sports
• Tupelo Media Group
• PowerNation Studios
• Assembly Atlanta studio facilities
• Third Rail Studios
• Majority ownership in Swirl Films

Production revenue for Q3 2025 was $25 million, down 4% year-over-year.

NextGenTV Services: Future-proofing with datacasting and enhanced video quality

Gray Media is actively positioning for the future of broadcast spectrum use. In early 2025, Gray Media, along with others, formed a joint venture called EdgeBeam Wireless to capitalize on new data delivery services via ATSC 3.0 (NextGen TV). The technology promises datacasting capabilities that could potentially dwarf traditional TV revenue, enabling services like automotive updates and IoT networks. As of the end of 2024, NextGen TV was available to 76% of Nielsen TV households across 78 of the 210 Nielsen designated market areas (DMAs). The company plans to invest between $85 million to $90 million in capital expenditures during 2025.

You should track their progress on this front, as it represents a significant potential new revenue stream. Finance: draft 13-week cash view by Friday.

Gray Television, Inc. (GTN) - Canvas Business Model: Customer Relationships

You're looking at how Gray Television, Inc. (GTN) keeps its advertisers and distributors locked in as the media landscape shifts. The relationship strategy is clearly segmented, moving from high-touch local deals to automated digital outreach, all underpinned by those critical, long-term carriage contracts.

Dedicated local sales teams for high-touch advertiser relationships

The core relationship here is direct, face-to-face selling to local and regional advertisers. This team focuses on leveraging the deep local market penetration GTN has achieved. For instance, in the third quarter of 2025, this core advertising segment, which includes local and regional commercials, brought in $355 million in revenue. That follows $361 million in the second quarter of 2025 and $344 million in the first quarter of 2025. This consistency in the core business shows the sales teams are maintaining relationships even when political dollars cycle out. To be fair, the core advertising revenue in Q3 2025 was down 3% from the prior year, but it matched the high end of guidance, showing the sales force is hitting targets. The company maintains the first and/or second highest-rated television station in 99 markets as of 2024, which is leverage for these teams.

Community-centric engagement via local news and public service

The value proposition to the community is local relevance, which translates directly into audience reach for advertisers. Gray Television, Inc. serves 113 television markets and reaches approximately 37% of U.S. television households. The commitment to local content is evident in viewership numbers; collectively, their 5 p.m. newscasts averaged 4.4 million viewers in Q3 2025. Also, the company maintains the largest Telemundo Affiliate group, serving 44 markets, which targets the growing Hispanic media segment. This deep community integration is what makes the local ad inventory valuable.

Key community engagement metrics include:

• Reaches approximately 37% of U.S. TV households.
• Holds top audience share in 78 markets (as of 2024).
• Operates in 113 television markets.
• Largest Telemundo Affiliate group with 44 markets.

Contractual, long-term retransmission agreements with pay-TV providers

These agreements represent a foundational, non-discretionary revenue stream. Retransmission consent revenue is payment from cable and satellite operators for the right to carry GTN's channels. This revenue stream was historically a growth driver, making up nearly 45% of total revenue as of early 2024, though it is facing pressure from subscriber churn. The relationship here is highly contractual and often spans multiple years, providing revenue visibility. For example, the remaining 60% of the subscriber base was up for renewal in 2024, following a 40% renewal cadence in 2023. The trend shows slight pressure, with Q3 2025 retransmission revenue slipping 6% to $346 million.

Here's a look at the recent quarterly retransmission revenue performance:

Automated digital advertising sales for smaller local businesses

For smaller local businesses that might not engage the high-touch local sales teams, GTN uses automated platforms for digital ad sales. This is the scalable, transactional part of the customer relationship. While specific 2025 digital revenue figures aren't explicitly broken out in the latest reports, the company was guiding for strong double-digit growth in digital advertising revenue for the quarter ending June 30, 2025, suggesting this segment is a key focus area for growth outside of traditional core and political sales. This automated approach helps capture smaller, more frequent digital ad buys efficiently.

Gray Television, Inc. (GTN) - Canvas Business Model: Channels

You're looking at how Gray Media, Inc. (formerly Gray Television, Inc.) gets its content and services in front of viewers and customers as of late 2025. This is all about distribution pathways.

Over-the-Air (OTA) Broadcast via owned/operated TV stations remains the core foundation. Gray Media is the nation's largest owner of top-rated local television stations. As of August 2025, its portfolio serves 113 television markets and collectively reaches approximately 37 percent of US television households. The company has a strong local presence, holding the top-rated television station in 78 markets and the first or second highest-rated station in 99 markets during 2024.

The revenue from these OTA signals is heavily reliant on network affiliations, which dictate the primary content stream. Based on 2024 data, the network split of total revenue was:

This OTA channel is also the source of significant political advertising revenue, though it is cyclical. For instance, Q3 2025 political advertising revenue was $8 million, which is significantly lower than the $497 million earned in the full year 2024.

Multichannel Video Programming Distributors (MVPDs) like cable/satellite provide a crucial, recurring revenue stream through retransmission consent fees. This revenue is reported under Distribution Fee Revenue. For the third quarter of 2025, this channel brought in $346 million. S&P Global Ratings expected gross retransmission revenue to decline 1% in 2025.

The performance across the main revenue-generating channels for recent quarters shows the relative weight of each component:

Virtual MVPDs (vMVPDs) like YouTube TV are part of the MVPD distribution channel but are currently a point of friction. The company is facing challenges due to the ongoing YouTube TV carriage dispute which specifically affects its ABC stations. No specific financial metric for this channel's contribution or loss in 2025 was made public.

Gray Digital Media: Websites, mobile apps, and OTT streaming platforms represent the digital growth vector. Gray Media operates Gray Digital Media, a full-service digital agency. Digital advertising revenue saw strong double-digit growth year-over-year in Q1 2025. The newer local direct business within this segment was up low single digits in Q3 2025 over Q3 2024.

Studio Facilities: Direct B2B channel for film/TV production companies is another distinct channel. Gray owns production companies like Tupelo Media Group and facilities such as Assembly Atlanta and Third Rail Studios. Revenue from this segment, categorized as Production Revenue, was $25 million in Q3 2025. The Assembly Atlanta development is viewed as a potential major cash generator within 12-24 months.

The overall financial scale of Gray Media as of the trailing twelve months (TTM) ending in 2025 is reported at $3.34 Billion USD in revenue.

Gray Television, Inc. (GTN) - Canvas Business Model: Customer Segments

You're looking at the customer base for Gray Media, Inc. (formerly Gray Television, Inc.) as of late 2025. This company relies on a diverse set of entities paying for access to its local audience reach and production capabilities.

The primary customer groups are segmented by the nature of their advertising spend, distribution access fees, or production needs. Here's a breakdown of the key segments and supporting financial data from the latest available reports, primarily Q3 2025 results and Q4 2025 guidance.

Local and National Core Advertisers (e.g., legal, financial services, auto)

This segment represents the consistent, non-cyclical advertising revenue stream. You see this group's spending reflected in the Core advertising figures. For instance, in the third quarter of 2025, this group generated $355 million in revenue for Gray Media, Inc. While this was a slight dip of 3% year-over-year, the company is projecting a stronger fourth quarter, guiding core advertising between $380 million and $390 million. Legal advertising specifically saw double-digit growth in Q2 2025.

• Legal advertising grew at double-digit rates in Q2 2025.
• Digital advertising revenue increased by 8% in Q2 2025.
• Core advertising revenue in Q1 2025 was $344 million.

Political Campaigns and Issue Advertisers (cyclical, high-margin)

This is a highly cyclical customer segment, spiking significantly in even-numbered election years. In the non-election year of 2025, the revenue reflects the expected sharp drop-off. Q3 2025 political advertising revenue was only $8 million, a 95% decrease from the prior year. For context, the full-year 2024 political advertising revenue reached $497 million, estimated to be the highest among peers. The guidance for Q4 2025 political advertising remains low, projected between $7 million and $8 million.

Pay-TV Distributors (MVPDs/vMVPDs) paying retransmission fees

These distributors pay Gray Media, Inc. to carry its broadcast signals. This revenue stream is substantial and provides a base level of income, though it faces pressure from subscriber churn. Q3 2025 retransmission revenue was $346 million, a 6% slip from the prior year. In the first quarter of 2025, this segment brought in $379 million. Gray Media, Inc. bolstered this segment with its 113-station network.

Local Viewers/Audiences in 113 US markets

While viewers don't directly pay Gray Media, Inc., their attention is the product sold to advertisers and distributors. Gray Media, Inc. owns local television stations and digital assets serving 113 television markets. This footprint collectively reaches approximately 37 percent of U.S. television households. The portfolio includes the top-rated station in 78 markets as of 2024.

• Markets served: 113.
• U.S. TV Household Reach: Approximately 37 percent.
• Largest market by revenue in 2024: Phoenix, Arizona, contributing 5% of total revenue.

Film and Television Production Companies (for studio space)

This segment utilizes Gray Media's physical assets, such as Assembly Atlanta and Third Rail Studios, for production needs. Q3 2025 revenue from production companies totaled $25 million. The company had previously guided for an EBITDA contribution from its studios of $20 million-$30 million in 2024. Gray Media, Inc. is actively securing tenants for this space.

Finance: draft 13-week cash view by Friday.

Gray Television, Inc. (GTN) - Canvas Business Model: Cost Structure

The Cost Structure for Gray Television, Inc. (GTN) is heavily weighted towards fixed and semi-fixed operational expenses necessary to maintain its extensive local broadcast footprint. You see this immediately when looking at the scale of running dozens of local stations.

High fixed costs form the bedrock of the expense base. Broadcast operating expenses, which exclude non-cash items like depreciation and amortization, were reported at $542 million for the third quarter of 2025. This figure reflects the ongoing costs of running the stations, such as power, transmission, and core staffing, even when advertising revenue fluctuates. For context, the full-year 2025 estimate for total Operating Expenses (Broadcasting and Corporate, before D&A) was projected to be around $1,682 million.

Debt servicing is another major, non-discretionary cost. As of September 30, 2025, Gray Television's total long-term debt stood at approximately $5.6 billion. Servicing this debt requires significant cash outlay, with estimated 2025 interest payments being around $450 million. Managing this interest expense through refinancing, like the secured note issuances in mid-2025, is a key financial priority to keep this cost manageable.

Network affiliation expenses represent a direct cost tied to carrying major network programming. For the third quarter of 2025, network affiliation fees paid by Gray Television were reported at $214 million. This is a critical component of the cost structure, as these fees are often negotiated against the retransmission consent revenue received from cable and satellite providers. The full-year 2025 estimate for Network Affiliation Fees was projected to be approximately $595 million.

Content production and personnel costs are essential for delivering the core product: local news and programming. These costs are substantial because local news requires dedicated reporters, anchors, and production crews in every market. For the third quarter of 2025, the Production Companies Expense line item, which captures some of this content creation cost, was reported at $28 million.

Finally, capital investment is necessary for future compliance and technological advancement. This includes expenditures for the transition to NextGenTV (ATSC 3.0) and ongoing studio development projects, such as the Assembly Atlanta initiative. Capital expenditures for 2025 were estimated to be in the range of $85 million to $90 million.

Here's a quick breakdown of key quarterly cost components for Q3 2025:

The cost structure is characterized by these large, relatively fixed outflows that must be covered regardless of short-term advertising volatility. You have to pay the transmission costs and the debt service every month.

Key cost drivers that you need to monitor include:

• Personnel Costs: Salaries and benefits for local news staff.
• Network Fees: Payments tied to affiliation agreements.
• Debt Interest: Fixed cash outflow based on outstanding debt balances.
• Technology Upgrades: Capital outlay for NextGenTV compliance.

If onboarding takes 14+ days, churn risk rises, but for costs, if the interest rate environment shifts unfavorably, the $450 million annual interest expense could easily increase on future refinancings.

Finance: draft 13-week cash view by Friday.

Gray Television, Inc. (GTN) - Canvas Business Model: Revenue Streams

You're looking at the core ways Gray Television, Inc. makes money right now, late in 2025. It's a mix of traditional media fees and modern digital sales, though you'll see some streams are far more dependable than others.

The main engine is still fees from cable/satellite providers, followed closely by local advertising sales. Political revenue, as you know, is a wild card that swings hard based on the election calendar.

Here's a breakdown of the key revenue streams based on the latest reported quarter, Q3 2025, plus context on the growth areas.

The digital segment is where Gray Television, Inc. is clearly pushing for future stability. While the Q3 numbers above are the headline figures, the digital side shows a different trend.

• Digital Advertising Revenue: Gray Television, Inc. reported seeing strong double-digit growth on a year-over-year basis in digital advertising revenue as of the outlook provided for Q1 2025.
• Local Customers: This digital growth is also supported by growth from local customers who hadn't purchased advertising before.

To be fair, the Q3 2025 figures show the cyclical nature of the business. For instance, the $8 million in Political Advertising Revenue is a massive drop from the prior year, which is expected in an off-election year. Still, the $346 million from Retransmission Consent Fees provides a solid, recurring base, even with a slight dip.

You can see the relative size of the two biggest components from Q3 2025:

• Retransmission Revenue: Accounted for 46.2 percent of total revenue.
• Advertising Revenue (Core + Political): Accounted for 48.6 percent of total revenue ($355 million + $8 million = $363 million, which is 48.46 percent of the $749 million total revenue).

Finance: draft 13-week cash view by Friday.