TEGNA and Kroenke's Broadcast Deal: A Strategic Blueprint for the Future of Sports Media

The recent extension of the broadcast agreement between TEGNA and Kroenke Sports & Entertainment (KSE) for the 2025 season marks a pivotal moment in the evolution of sports media. By securing free over-the-air (OTA) broadcasts of 20 Denver Nuggets and 20 Colorado Avalanche games on KUSA (Channel 9, NBC) and KTVD (Channel 20, MyNetworkTV), the partnership ensures access for 3.5 million Denver-area viewers while simultaneously launching a subscription-based streaming platform, Altitude+TEGNA renews broadcast agreement with Kroenke Sports for 2025^[1]. This hybrid model—combining traditional OTA broadcasting with direct-to-consumer (DTC) digital access—reflects a broader industry shift toward platform-agnostic content delivery and data-driven monetization. For investors, the deal offers a window into how legacy media companies and sports franchises are navigating the fragmentation of the sports media landscape.

Strategic Implications for Free Over-the-Air Broadcasting

The TEGNA-KSE agreement underscores the enduring value of OTA broadcasting in an era of cord-cutting. By simulcasting 10 games on KUSA, Denver's top-rated NBC affiliate, the partnership leverages the reach and credibility of linear TV to attract a broad audience, including older demographics and households without broadband accessKroenke Sports & Entertainment extends broadcast deal with TEGNA^[2]. This is critical in a market where pay-TV subscriptions have declined from 100 million U.S. households in the early 2010s to just 50–55 million todayTraditional broadcasting is dying: Sports media is…^[3]. OTA remains a cost-effective way to maintain mass-market relevance, particularly for teams like the Nuggets and Avalanche, whose playoff runs in 2024 drew strong ratingsNuggets, Avalanche to broadcast 20 games each^[4].

However, the deal goes beyond traditional broadcasting by integrating Altitude+, a $19.95/month streaming service. This dual approach mirrors strategies adopted by leagues like the NBA and NFL, which use OTA to anchor their core fanbase while monetizing niche audiences through DTC platformsHow Streaming Services Are Changing the Economics of Live Sports^[5]. For TEGNA, the move aligns with its broader strategy to diversify revenue streams. As noted in TEGNA's Q1 2025 earnings call, the company is leveraging AI and automation to reduce production costs and enhance digital engagement, a critical factor in maintaining profitability amid declining ad spend on linear TVTegna Inc (TGNA) Q1 2025 Earnings Call Highlights^[6].

Media Evolution and Advertising Revenue Shifts

The hybrid model also signals a fundamental shift in how advertising revenue is generated. Traditional TV ads during live sports still command 24% higher engagement than other programming, but the rise of free ad-supported streaming TV (FAST) and ad-supported video-on-demand (AVOD) platforms is reshaping the landscapeAd revenue should stabilize for media companies in…^[7]. For instance, Altitude+'s TV Everywhere integration allows KSE to monetize existing cable subscribers while collecting data on streaming viewers—a dual advantage that could attract advertisers seeking to target younger, digitally native audiences.

Data from PwC highlights that sports organizations are increasingly prioritizing “fan-first” strategies, using streaming platforms to gather insights on viewing habits and content preferencesHow the rise of digital platforms is changing sports…^[8]. The Nuggets and Avalanche, for example, are likely to leverage Altitude+'s analytics to optimize game broadcasts, personalize sponsor integrations, and activate targeted promotions. This data-driven approach mirrors the success of leagues like the WNBA, where ad engagement during games increased by 16% in 2024 due to hyper-personalized contentKey takeaways on the future of media from the…^[9].

Broader Industry Trends and Investment Considerations

The TEGNA-KSE deal is emblematic of a larger trend: the decline of regional sports networks (RSNs) and the rise of direct-to-consumer distribution. As teams bypass RSNs to control their own content, they gain greater flexibility in pricing and audience targeting. Kroenke's investment in SoFi Stadium and other real estate assets further illustrates the shift toward diversified revenue streams, with venues serving as year-round hubs for events beyond sportsKroenke's Sports Legacy: Financial Strategies and Economic Impact^[10].

For investors, the key takeaway is the importance of adaptability. TEGNA's focus on AI-driven production and KSE's embrace of DTC streaming position both entities to thrive in a fragmented media environment. However, challenges remain. The growth of FAST channels, projected to surpass cable ad revenue by 2025, could cannibalize traditional TV's share of sports advertisingStreaming services advertising in the United States^[11]. Additionally, the success of Altitude+ hinges on its ability to retain subscribers in a crowded streaming market, where price sensitivity and subscription fatigue are persistent risks.

Conclusion

The TEGNA-KSE partnership is more than a local broadcasting agreement—it is a strategic blueprint for the future of sports media. By combining the accessibility of OTA with the monetization potential of streaming, the deal reflects the industry's pivot toward hybrid models that prioritize both reach and data-driven engagement. For investors, the collaboration highlights the importance of investing in companies that can navigate the dual pressures of declining linear TV and rising digital competition. As the sports media landscape continues to evolve, those who adapt with agility and innovation—like TEGNA and KSE—are likely to emerge as leaders.