The association says that since the cable operator reported a fourth quarter net income increase of 44% and annual profits of $1.3 billion, “it's time for pay TV's poster child for skyrocketing rates to come clean on retransmission consent.”
RETRANS WARS
NAB Blasts Time Warner Over Earnings
In response to Time Warner Cable’s announcement Thursday of its fourth quarter earnings, NAB Executive Vice President of Communications Dennis Wharton issued the following statement:
“Given that Time Warner Cable just announced a quarterly net income increase of 44% and annual profits of $1.3 billion, it’s time for pay TV’s poster child for skyrocketing rates to come clean on retransmission consent. Time Warner and its front group the American Television Alliance claim that broadcast retransmission consent fees are responsible for escalating cable rates. That claim is false. The fact is that local TV station carriage fees account for less than 1% of the cost of a monthly cable bill.
“It’s laughable to suggest that broadcasters are responsible for higher cable rates.”
The NAB went on to say that according to data compiled by SNL Kagan, the average cable bill has risen at a rate faster than inflation. In addition, a filing submitted to the FCC by NAB found that in 2010 retransmission consent fees were approximately six-tenths of 1% of a pay-TV operator’s revenues.
Comments (3)
Marilyn Hyder says:
January 27, 2012 at 1:25 pm
A la carte, baby! Viewers should be allowed to pay only for what they watch. This idea that we’re paying hundreds of dollars a month for pre-determined packages must change.
It’s a smoke and mirrors game as we don’t know the true cost of a channel.
The truth is that most viewers continue to watch the major broadcast networks. Even those broadcast network’s reruns–like NCIS–are some of the top rated show on the top cable channels.
Darlene Simono says:
January 27, 2012 at 3:17 pm
It’s not our job as broadcasters to blame them, to be angry at them for earning their profits. Let them earn more. Let’s all earn more. You can’t build yourself up by tearing someone else down. It’s our job to earn and maximize our own profits. We will. Back to work.
Leigh Diamond says:
January 30, 2012 at 10:04 am
Hey here’s an idea…all you babies out there “NAB Babies” who are worried about re-trans…why don’t you just get off the cable delivery system all together and really make your way as a BROADCASTER as you pretend to be when you are selling your outdated ratings…like as in ONLY “over the air” then you will not have anything to cry about…and you can make all the money you want over the air…and keep it!