As broadcast stations become essential components to new virtual MVPD services, broadcast retransmission fees will grow at an even faster rate, said Wells Fargo analyst Marci Ryvicker.
Speaking at the TVB Forward Conference in New York Thursday – an event covered by TV News Check – Ryvicker said, “Net retransmission consent is becoming a bigger portion of EBITDA.”
Earlier this year, SNL Kagan revised its projection for retrans growth, estimating that licensing fees will climb to $10.6 billion by 2020.
For local broadcasters, the word coming out of TVB was not as good in regard to political advertising.
Steve Passwaiter, VP/GM of Kantar Media/CMAG, released figures showing that local stations will see 15 percent fewer political advertising dollars in 2016 than originally projected – a $500 million shortfall from the $3.3 billion prediction.
For her part, Ryvicker also lowered her projection for TV stations' political advertising revenue to $2.65 billion from a $3 billion-plus estimate.
Passwaiter said local political advertising on cable/satellite services will come in $50 million short of the original $800 million estimate.
For more:
- read this TV News Check story
- read this Mediapost story
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