The money will flow from retransmission consent deals with 179 cable, satellite and telco TV providers, the station group says. It expects a third of the money in 2009 and notes that more deals are in the works.
Nexstar Broadcasting Group announced today that it has renewed or reached new multi-year retransmission consent agreements expected to generate more than $75 million in revenue to Nexstar over the life of the agreements, with approximately one third of the revenue to be realized in 2009.
The agreements are with 178 cable operators, satellite TV operators or telco TV providers.
“In late 2005, Nexstar emerged as an industry pioneer in the negotiation of retransmission consent agreements,” said Nexstar CEO Perry Sook in a prepared statement.
“The original agreements, primarily three to four years in length, called for revenue to Nexstar of about $50 million over their term. In 2008, Nexstar reported that 47 percent of the contract dollars represented by the original agreements, or approximately $23.5 million, was up for renegotiation.
“As such, the more than $75 million in revenue to be derived from the new retransmission consent agreements represents extraordinary growth over both the original agreements and the anticipated levels of renewal.”
In the first nine months of 2008, Nexstar recorded approximately $15.5 million from retrans deals, a 23 percent rise from the same period in 2007.
“Nexstar has several additional retransmission agreements which will be re-negotiated in 2009 and we expect further upside to the annualized run rate of our retransmission revenue stream in future years,” Sook said.