Print
Email
/ 03.26.2010 12:00AM
Sinclair Gives Retrans Cut to ABC
HUNT VALLEY, MD.: Sinclair Broadcast Group, reached an
affiliation agreement with the ABC Network for the renewal of nine ABC
stations. It includes a licensing fee that represents a cut of retransmission
revenue, according to Barry Faber, executive vice president and general manager
of Sinclair. The model marks the first reversal, whereby stations are paying
the network instead of the other way around.
“Although the agreement includes a license fee, based in part on retransmission
consent revenue, we believe that the pass through to the networks of a
reasonable portion of the fees that broadcasters receive is a necessary and
appropriate way to make sure that the networks continue to be able to provide
the most popular programming on television,” Faber said in Sinclair’s statement
announcing the deal. “Over time, we expect that the fees paid by multi-channel
video program distributors to acquire content will be reallocated so that the
payments they make more closely correlate with the popularity of programming.
As a result, the fees paid to broadcasters are likely to increase to more
appropriate levels, which will allow affiliates to share these fees with the
networks in a measured manner, while the local stations continue to benefit
from this dual revenue stream.”
The renewal is through Aug. 31, 2015. The previous affiliate agreement between
the two expired at the end of 2009. Programming continued as both parties
agreed to extend that agreement until a new one could be hammered out. The deal
covers affiliates in West Virginia, Illinois, Florida, Alabama, North and South
Carolina, Ohio and Missouri.
“As one of ABC’s largest affiliate groups, we are pleased to renew our
partnership with the network. We believe the length of this new term continues
to demonstrate the robust viability of the network/affiliate model,” said David
Smith, president and CEO of Sinclair. “The agreement will benefit our local
market viewers by continuing to provide popular programming... and will help us
to more quickly realize the value our programming... brings to multi-channel
video program distributors.”
Sinclair said it doesn’t expect terms of the new agreement or the license fee
to negatively impact the 2010 television station expense guidance provided in
Sinclair’s Feb. 17 earnings release, which had already included an estimate for
such amount.
Print
Email
Thursday 12:00AM
Broadcasters File Suit Against FCC’s Political File Rules
“The FCC decision to put the political files online will bring broadcasters into the 21st century, and will make already public information more easily accessible to everyone.” Free Press Senior Policy Counsel Corie Wright.