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Take a Look at Retrans Revenues
Broadcasters are collecting an increasing amount of revenue through retransmission consent agreements with pay-TV providers, and that has compelled the American Cable Association to reiterate its position that the retrans model is broken.
To back up its arguments, ACA pointed to individual broadcasters and their second quarter numbers. During that period, Sinclair reported a 27 percent increase in retransmission consent revenue, to $18.7 million, when compared to second quarter 2007. Also, Belo reported a 36 percent increase in retrans money, to $7.6 million, Hearst-Argyle saw a 26 percent increase to $6.8 million, and LIN TV reported a 97 percent increase to $6.7 million, stated numbers provided by the association.
Since 2005, broadcasters have increased revenues generated from retransmission consent by about 75 percent, ACA said.
"The numbers are in, and once again cable customers lose as broadcasters squeeze every last penny out of operators –- simply because outdated federal rules allow them to do so," said Matt Polka, ACA president and CEO. "With thousands of retransmission consent contracts set to expire in the coming months, we expect broadcasters to continue to exploit their government-enhanced market power, which will very likely raise prices for pay television customers across the country next year."
Broadcasters are collecting an increasing amount of revenue through retransmission consent agreements with pay-TV providers, and that has compelled the American Cable Association to reiterate its position that the retrans model is broken.
To back up its arguments, ACA pointed to individual broadcasters and their second quarter numbers. During that period, Sinclair reported a 27 percent increase in retransmission consent revenue, to $18.7 million, when compared to second quarter 2007. Also, Belo reported a 36 percent increase in retrans money, to $7.6 million, Hearst-Argyle saw a 26 percent increase to $6.8 million, and LIN TV reported a 97 percent increase to $6.7 million, stated numbers provided by the association.
Since 2005, broadcasters have increased revenues generated from retransmission consent by about 75 percent, ACA said.
"The numbers are in, and once again cable customers lose as broadcasters squeeze every last penny out of operators –- simply because outdated federal rules allow them to do so," said Matt Polka, ACA president and CEO. "With thousands of retransmission consent contracts set to expire in the coming months, we expect broadcasters to continue to exploit their government-enhanced market power, which will very likely raise prices for pay television customers across the country next year."
