Cable Retrans Fees On Rise

TEMPO.CO, Jakarta - Retrans fees paid by basic cable networks are still a fraction of overall network/programming carriage fees paid by cable networks. But those retrans fees are expected to rise quickly, as cited in Media Post News.

SNL Kagan says broadcast fees amounted to 8.9 percent or $3.3 billion of the $37.3 billion in total revenue of cable operators pay basic cable networks and regional sports networks.

The share of retransmission fees for cable operators is expected to rise to a 10.5 percent share in 2014; 11.4 percent in 2015; 12.1 percent in 2016; and 12.5 percent in 2017.

By 2017, retransmission fees are estimated to be $6.6 billion -- and all basic cable network/regional sports network fees paid by cable operators will get to $52 billion, according to SNL Kagan.

SNL Kagan says broadcasters have said TV stations deliver 35 percent of a typical cable system's TV viewing, but collect just 10 percent of the programming fees.

SNL Kagan says ESPN continues to be at the top of the list for all basic cable networks -- collecting $5.04 per sub per month on average in affiliate fees in 2012. It says TNT grabs an average $1.20 month in affiliate fees.

Previously, SNL Kagan also said "reverse retransmission" revenue -- where money goes from network affiliates and O&O stations to TV networks is estimated to grow as well -- from $1.02 billion in 2014 to $2.25 billion in 2019.

MEDIA POST | WF