Retrans Costs On The Rise

Cable operators and other multichannel distributors are expected to report third-quarter results next month, and while the recession may have put some downward pressure on subscriber growth, one line item is sure to be on the rise — retransmission-consent costs. But at least one analyst believes that the pain won't be quite so severe, mainly because many retrans deals were struck at the end of last year. Retransmission-consent revenue rose again for the 17 major broadcast-station groups in the second quarter to more than $150 million from more than $100 million in the first quarter. It was the second consecutive three-month period that retrans revenue topped $100 million. But save for one new entry — Univision Communications' retrans take rose 300% in the period, to $60.5 million from $15.1 million in 2008, according to SNL Kagan — the increases were relatively stable on a quarter-to-quarter basis. Aside from Nexstar Broadcasting Group — which reported a 71% increase in retrans revenue to $7.9 million in the quarter, compared to Q1 — sequential retrans increases were in the teens and low double digits.