European TV Wants to Channel U.S. Profits

European television networks often find creative inspiration in the U.S. Now, they also want to cash in on TV the American way.

A lucrative strategy among U.S. free-to-air broadcasters has been to charge "retransmission" fees to pay-TV companies for the right to air their content. The broadcasters have leverage because roughly 90% of Americans have cable or satellite TV, where they often watch free-to-air channels through set-top boxes. Some free-to-air broadcasters, therefore, argue their content should come at a price. Unfortunately, European broadcasters have had a tougher time squeezing retransmission fees from cable and satellite companies. A key reason: It is hard for most broadcasters to restrict access to their content.

But things may be about to change, thanks to increasing demand for high-definition, or HD, channels. Broadcasters have gained negotiating power by offering HD versions of their content that isn't always available via antenna. Pay-TV companies need such channels to entice customers to pay for HD packages.