Businessmodel of Tegna

Customer Segments

Tegna has a mass market business model, with no significant differentiation between customers. The company targets its offering at consumers of television broadcasts and the Internet.

Value Proposition

Tegna offers two primary value propositions: accessibility and brand/status.

The company creates accessibility by offering a wide variety of options to a large number of people. It operates 46 different television stations that reach one-third of all TV households in the U.S. Furthermore, its CareerBuilder website has a presence in over 60 markets worldwide. Tegna also offers accessibility by connecting different parties. Its G/O Digital is a solution that enables local businesses to link with consumers across 110 markets through localized digital marketing.

The company has established a strong brand as a result of its scope. It reaches 90 million Americans each month through its various properties. It holds several titles of success, including the following;

• Largest independent station group of major network affiliates in the top 25 markets
• The #1 NBC affiliate group, #1 CBS affiliate group, and #4 ABC affiliate group
• Owner of Cars.com, the top automotive website for consumers with more than 30 million monthly visits to its web properties
• Owner of CareerBuilder, the largest job website in North America in terms of both revenues and visitor traffic Tegna has also won many national honors, including Edward R. Murrow, George Foster Peabody, Alfred I. DuPont, National Headliner, George Polk, and Emmy awards.

Channels

Tegna’s main channels are its TV stations and its websites, through which it acquires visitors and viewers. The company promotes its offering through its social media pages and online/TV/print advertising.

Customer Relationships

Tegna’s customer relationship is primarily of a self-service nature. Customers utilize its products while having limited interaction with employees. That said, there is a personal assistance component in the form of phone support.

Key Activities

Tegna’s business model entails producing and distributing media content for its broadcast and digital properties. It also distributes content from third parties.

Key Partners

Tegna has the following types of partners:

• Network Partners – The company pays programming fees to networks in exchange for news, sports, and primetime programming; 40 of its 46 stations have affiliation agreements with one of the four leading broadcast networks
• Service Providers – The company forms partnerships with organizations that provide various business services – for example, it has a high-profile alliance with CrowdTangle, a social analytics firm whose platform enables Tegna stations to monitor breaking news on social media ### Key Resources

Tegna’s main resources are its staff of technology employees that maintain its various media properties and its staff of content creators (writers, artists, etc.) that produce the media for those platforms. The company also depends on customer service personnel to provide support and sales/marketing employees to promote its offerings.

Cost Structure

Tegna has a cost-driven structure, aiming to minimize expenses through significant automation and low-price value propositions. Its biggest cost drivers are sales/marketing and administration expenses, both fixed costs. Another major driver is cost of sales and operating expenses.

Revenue Streams

Tegna has three revenue streams:

Advertising Revenues – These are revenues generated from the following:

• Fees charged for core advertising (national and local non-political advertising) and political advertising, which is typically driven by elections
• Fees charged for digital marketing services provided to stations for their websites
• Sales of online subscription advertising products (on Cars.com and CareerBuilder) Retransmission Revenues – Revenues generated from fees charged to cable and satellite operators and telecommunications firms to carry Tegna’s TV signals on their systems

Service Revenues – Revenues generated from fees charged to advertisers for services such as programming production from third parties