ABC, CBS Getting Reverse Comp From Belo

Belo is paying ABC and CBS reverse compensation, but isn’t saying how much.

This afternoon, on a conference call with securities analyst, CEO Dunia Shive said that the publicly traded station group had concluded an affiliation renewal agreement with ABC, effective Jan. 1, 2010, that calls for Belo to pay the network for its programming. Belo has four ABC affiliates.

Shive also said that three of Belo’s five CBS affiliates had also agreed to renewals, in which Belo is paying the network. Those deals took effect Feb. 1.

However, Shive declined to say how much the company is paying either network, noting that the payments are buried in a programming expense line on the earnings report.

The networks began demanding so-called reverse compensation from its affiliates a couple of years ago, believing that they deserved a share of the new retransmission consent payment that affiliates had begun collecting from cable and satellite operators.

While the reverse comp is increasing Belo’s programming expenses, the loss of the high-priced, syndicated Oprah Winfrey Show this fall will decrease them. The replacement programming, whether locally produced or syndicated, will be significantly less. Again, Shive declined to say by how much.

The loss of Oprah, she also acknowledged, will have a positive impact on the Belo’s bottom line. Oprah is ending is 25-year in broadcast syndication at the end of this season.

Shive told the analysts not to expect Belo to be active in the station trading market. The focus now is to continue paying down debt and deleveraging the company, she said.

But that doesn’t mean that others won’t be active. There were a lot of deals leading into the recession, and some of those buyers may now be looking for an “exit strategy” leading into what should be a “very strong” 2012, she said.