Stations’ Retrans Boost Looks To Continue

BIA/Kelsey reports today that television stations are seeing increased revenues from retransmission consent agreements, the negotiated fees arranged with local cable and satellite delivery systems to carry their stations.

In 2012 BIA/Kelsey estimates that these amounts contributed an average 6.5% of total television station revenues. It adds: “An increasingly significant stream of income, this source is expected to grow to 9.5 percent by 2017 as contracts expire and are renegotiated.”

Mark Fratrik, BIA/Kelsey VP-chief economist, said: “Retransmission fees have become a noticeable revenue stream for local television stations but are also a much needed revenue source to support their investments in news and local programming. They also reflect the changing arrangements between local affiliates and the parent networks.”

BIA/Kelsey’s calculation and forecasts of retransmission fees are based on the overall and expected growth in:

• Television households

• Cable penetration rates

• Fees local stations are receiving from cable and satellite delivery systems

• Fees local stations are paying parent networks for their share of these revenues

• Amounts received by non-top four affiliates (CW, MNT and Univision).