[opendtv] Re: News; Affiliates Prepare to Swallow Bitter Reverse-Compensation Pill
- From: Craig Birkmaier <craig@xxxxxxxxx>
- To: opendtv@xxxxxxxxxxxxx
- Date: Tue, 15 Jul 2008 00:35:09 -0400
At 5:19 PM -0400 7/14/08, Manfredi, Albert E wrote:
Craig Birkmaier wrote:
So what happens to a local broadcaster when they start
collecting retrans consent dollars?
"The new reverse-comp deals won't always mean cash changes hands.
In some cases, a station might turn over negotiations for
retransmission-consent payments from local cable operators and
let the network keep some or all of what it can get."
In principle, this shift could mean a drastic change in allegiances, or
rather lack thereof.
Take a Euro broadcaster like TF1. They buy content from all of the major
US networks. I've noticed TV affiliates here doing similar things for
sindicated programming, and also in their multicasts.
Why couldn't the affiliates do more of this, also for prime time? The
more the congloms expect from the affiliates, the less hold they would
have on those affiliates, no?
They can and some do. But they generally fall into "Third World TV"
status. The advantage of affiliation with a broadcast network is
promotion of the network and the programming.
You have a number of independent broadcasters in your market(s). They
are able to operate profitably,. but nowhere near as profitably as
the major network affiliates. A number of stations have chosen not to
renew their network affiliation agreements, choosing to become
independents. I know of no examples where the station benefited
economically from this decision.
Two examples come to mind. KRON (San Francisco) lost its affiliation
with NBC. Ratings and revenues have plummeted and they are having
difficulty finding someone to buy the station for a decent price.
WJXT (Jacksonville) chose not to remain a CBS affiliate and now
focuses on news and syndicated programming. Not sure how they are
doing as a result, but the reason they chose not to stay with CBS was
related to reverse compensation.
Bottom line, the networks no longer need affiliates. They will suck
them dry, then FOTA broadcasting will probably go away.
Regards
Craig
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