It apparently doesn't matter that MVPDs (multichannel video programming distributors) are losing basic subscribers faster than Donald Trump is losing credibility. Broadcasters will extract more than a fair amount of money from them over the next six years, SNL Kagan is predicting.
Magnitude of potential broadcast retransmission fees, 2006-2017. Fees could double from 2010's $1.14 billion to $3.61 billion by 2017. (Image source: SNL Kagan)
Retransmission consent fees have become a way of life--and a living--for broadcasters, the analyst firm said. "For the pure-play TV station owners we analyzed, the revenue stream was equal to 52 percent of their cash flow on average in 2010 and can equate to as much as 76 percent of cash flow."
That means, the Kagan analysis predicts, that even as subscriber numbers fall retrans demands will go up "from $1.14 billion in 2010 to $3.61 billion by 2017 with average per-sub fees for cable MSOs potentially more than doubling over time from their 2010 levels through 2017."
- see this news release
Special Report: Retransmission consent fees: Broadcasters want more from everyone
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