ABC's Iger: Affiliates' Retransmission Payments Will Grow

ABC affiliates can expect to kick more of their retransmission consent spoils up to the network, as Walt Disney Company President/CEO Bob Iger told a room full of investors that the company seeks to grow its retrans pot at their expense.

"The good news is, we've struck some deals already with affiliates to gain access to those fees, and we're in negotiations with other affiliates to continue that strategy," he said at the Goldman Sachs Communacopia confab in New York. "Given the dynamics of the broadcast business and the relationship of the affiliates, we feel we're not only within our rights, but we will get more cash from their retransmission consent deals." Networks are increasingly demanding a substantial piece of partner stations' retrans earnings. Some ABC affiliates have privately grumbled at the network's demands, while others have chalked the fees up to the cost of doing business with a major network in the modern media age. ABC is not the only network pushing affiliates for retransmission revenue. Iger said it's essentially easy money for the network, with no costs involved. "Cash payments for retrans are real, will grow, and there's no incremental cost to get them," he said.