Sunflower Retrans Dispute Keeps K.C. Viewers in the Dark
Standoff Keeps ABC, CW Affiliates Off the Air
By Linda Moss -- Multichannel News, 1/5/2009 9:55:00 AM
Sunflower Broadband’s retransmission-consent dispute with Hearst-Argyle Television continued Monday in Kansas City, Mo., where the broadcaster pulled the signals for two of its TV stations on New Year’s Eve.
The standoff involves ABC affiliate KMBC-TV and CW affiliate KCWE-TV, who declined to offer Sunflower Broadband a contract extension at the end of the day Dec. 31 when their old deal expired, according to Patrick Knorr, chief operating officer of The World Co., parent of Lawrence, Kan.-based Sunflower Broadband.
The two stations pulled their signals off of the cable system, declining to grant an extension while talks continued, he said Monday.
Some 10% of the Kansas City market, or about 31,000 subscribers, are impacted.
“Just based on negotiations that occurred today, progress looks very dim,” Knorr said.
KMBC and KCWE in the last retransmission-consent contract weren’t get paid any cash compensation by Sunflower Broadband, but now they are seeking license fees higher than the cable system is paying to other broadcasters, and seeking more than satellite providers pay, according to Knorr.
“Hearst is asking for rates more than triple what we’ve agreed to with other major broadcasters in the Kansas City market,” Knorr said. “They’re not backing off of that. Hearst clearly implied they're asking us to pay more than satellite is paying."
Hearst-Argyle is seeking compensation of about $200,000 a year total for both stations, or more than $600,000 over the course of a three-year contract, he said.
On its Web site, KMBC said it was just seeking fair and reasonable terms.
“The compensation KMBC-TV is requesting from Sunflower Broadband is but a small fraction of the fee it charges its subscribers and is below what cable companies pay for other, less popular programming,” the station said.
In a statement on the Web site, KMBC president and general manager Wayne Godsey added, "We remain hopeful that our negotiations may soon be resolved."
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Mr. Whoopee - $200K works out to be close to $0.50/sub/mo. $2MM would suggest $5/sub/mo - god help us all if this is this case.
Quigley Spargus - 1/6/2009 9:25:00 AM EST -
$200,000 a year? That can't be right. Are you sure it isn't $2,000,000 a year?
Mr. Whoopee - 1/6/2009 9:18:00 AM EST -
Go get'em Sunflower. Keep in mind the broadcaster is likely strapped by an MFN with Comcast and Time Warner even though Comcast has 'unofficially' stated it doesn't pay more than $0.20 cash for any broadcasters signal. Quig's intelligence would suggest that you have a great deal of room to improve given other distributors in the region are paying downwards of 1/10th what Hearst is seeking from you. Good news is you have Topeka ABC and does anyone really watch CW? This is a battle worth fighting.
Quigley Spargus - 1/6/2009 8:20:00 AM EST
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