Retransmission consent fees, a revenue source that could...
Retransmission consent fees, a revenue source that could be threatened by a court decision in favor of Internet TV service Aereo, are projected to reach an amount that would be equal to 21 percent of TV station ad revenue and…
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14 percent of network ad revenue by 2016, said an analysis released Thursday by SNL Financial. Analyst Robin Flynn calls retrans revenue “an important component of revenue but by no means the largest.” Flynn said that between 2012 and 2016, TV stations will be paid more than $18.2 billion in retrans revenue, while generating more than $106 billion in revenue. Flynn projected that this year retrans fees paid to TV stations will rise to $3.02 billion, while “multichannel operators will pay cable networks, regional sports networks and premium networks $44.5 billion in affiliate fees.” Flynn also said Fox may try to raise retrans fees using its network’s high ratings as justification: “In 2011, ESPN’s prime-time rating averaged 1.84, versus 5.11 for FOX.”