Stations Eye $2 Billion in 2015

STATIONS EYE $2 BILLION IN 2015
[SOURCE: Broadcasting&Cable, AUTHOR: Allison Romano ]
TV-station owners stand to collect nearly $2 billion in 2015 from cable and satellite operators and telcos in exchange for the right to retransmit their broadcast signals. The projection, released last week by Kagan Research, delighted station operators battling a tough advertising market and increased competition for viewers. Some stations want cash for retransmission rights, while others negotiate for advertising or carriage of sister stations. The Kagan predictions are based on an all-cash model, with every broadcaster in a five-station market receiving 40 cents per subscriber. With that standard, Kagan projects that broadcasters could take in about $225 million in fees this year and $1 billion in 2009. That is considered a watershed year because it's when some station owners' cable deals, notably CBS', come due and they will likely seek cash payments. Currently, retransmission payments come mainly from satellite operators, and telco companies will likely pay, too. Most major cable operators have so far resisted paying cash fees, and that's where broadcasters are setting their sights.
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