Wednesday, February 01, 2006

Nexstar Predicts $48 million in Retrans Payments

Source: Broadcasting and Cable In a release outlining the effects of its quest to force DBS and cable operators to pay to carry their stations, Broadcaster Nexstar has offered a little information about how much money it expects to make. But the details are too skimpy to truly assess how much it’s really won, or whether its deals will set the pace for the rest of the TV industry.

Nexstar says that it expects to collect $48 million over the life of current three-to-five year agreements with cable, DBS operators and wireless cable in the 27 markets in which its operates. The annual revenue would account for a “low-double-digit” percentage of the company’s 2006 operating cash flow, which Bear, Stearns & Co. analysts estimate will total $78 million this year.

Interesting for Nexstar, but the company didn’t disclose enough information to see how significant it would be for the rest of the cable industry. For example, it’s not clear how much of that money is coming from DBS providers – who freely pay cash – and how much is coming from cable systems, who have fiercely resisted paying cash.

3 Comments:

At 7:34 PM, February 01, 2006, Anonymous Anonymous said...

Now they've done it. You know KATV will follow.

 
At 7:49 PM, February 01, 2006, Blogger Media Watcher said...

I've researched this issue throughly, and what I've found is that the FCC will allow stations to seek "retransmission consent" agreements between Jan. 1, 2006 and the time that a T.V. station turns off it's analog transmitter for good, probably sometime in 2009. After that, all stations revert back to the "must carry" rules which do not allow for stations to demand money. In this interim period, stations can opt for either "Must Carry" or "Retransmission consent." I think the FCC allowed this provision to be put into the digital t.v. rulemaking so as to entice T.V. station owners to go ahead and spend millions of dollars to upgrade to digital, knowing they could make that money back with "Retransmission Consent" in this 3 or so year period. There - Now you Know "The Rest of the Story!"

 
At 7:19 PM, February 02, 2006, Anonymous Anonymous said...

I like the part where they blow up the Deathstar.

 

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