[opendtv] Re: Analysis: Broadcast's $1 Billion Pot of Gold

  • From: Craig Birkmaier <craig@xxxxxxxxx>
  • To: opendtv@xxxxxxxxxxxxx
  • Date: Mon, 14 Jul 2008 10:01:31 -0400

At 12:16 PM -0400 7/11/08, John Shutt wrote:
Oh, one other thing I just thought about.

On an individual program basis, syndicated programs such as Oprah and Judge Judy have commercials in them, yet they still charge TV stations a fee for the rights to air those programs.

If each individual program could sustain itself with just the included spots, then why charge a syndication fee at all?

It's all about aggregating revenue from several sources.


----- Original Message ----- From: "Craig Birkmaier" <craig@xxxxxxxxx>

Yet somehow, broadcasters have managed to thrive for decades without the "found money" from retransmission consent fees.

Syndication fees are not subscriber fees. They are the very real cost of content in which a TV station (or cable network) can sell ads. Variations among syndicators regarding the mix of barter ads and local insertion opportunities DO reflect the operation of a marketplace for content.


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