[opendtv] SNL Kagan: Retrans Cash May Triple By 2017
- From: Craig Birkmaier <craig@xxxxxxxxx>
- To: OpenDTV Mail List <opendtv@xxxxxxxxxxxxx>
- Date: Fri, 27 May 2011 06:24:17 -0400
http://www.broadcastingcable.com/article/468804-SNL_Kagan_Retrans_Cash_May_Triple_By_2017.php
SNL Kagan: Retrans Cash May Triple By 2017
Bullish forecast on total earnings, but stations have to share
By Michael Malone -- Broadcasting & Cable, 5/25/2011 3:34:41 PM
Retransmission consent fees could increase from $1.14 billion in 2010
to $3.61 billion by 2017, forecasts SNL Kagan, "with average per-sub
fees for cable MSOs potentially more than doubling over time from
their 2010 levels through 2017."
The pure-play TV station owners analyzed by SNL Kagan showed retrans
to be equal to 52% of their cash flow on average in 2010.
"Overall for the industry, there is no turning back from the push for
higher retrans fees," reported Kagan, "given the continued strong
differential between the fees paid for certain cable networks versus
what broadcast network O&O stations with significantly more viewers
receive."
SNL Kagan estimates that ESPN/ESPN HD will receive $4.76 on average
sub per month in 2011, compared to less than 75 cents per sub that
network O&O stations in major markets are getting.
Kagan reports that retrans fees could rise 28% this year, to $1.46
billion, "thanks to more agreements being struck at progressively
higher levels between distributors and carriers."
That figure may jump to over $3.6 billion by 2017.
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