Retransmission Fees Hit 33 Cents Per Sub, Up 47% Since 2009

By Mike Farrell -- Multichannel News, 2/20/2012 12:01:00 AM

MONTEREY, CALIF. — Broadcast retransmission-consent fees rose nearly 47% in the two years between the third quarter of 2009 and 2011 and are expected to continue that blistering pace, according to SNL Kagan.

According to a recent Kagan report, which focused on a group of 16 station owners, retransmission-consent fees reached an average of 33 cents per subscriber per month in the third quarter of 2011. That is up 46.8% from the average of 23 cents per subscriber, per month in the same period in 2009. Average retrans fees were about 26 cents per customer per month in Q3 2010, according to Kagan.

Kagan ranked Univision Communications at No. 1, raking in retrans fees of 61 cents per subscriber per month, followed by Sinclair Broadcast Group (49 cents); Newport Television and LIN TV (48 cents each); and CBS (45 cents).

The study is based on an overlap analysis that combines third-quarter 2011 retransmission revenues and overall multichannel subscriber figures in each of the broadcasters’ TV markets.

Going forward, SNL Kagan anticipates that average retransmission fees will remain on an upward trend, given the leverage of valuable programming in 2012, including the Summer Olympics to be held in London from July 27 to Aug. 12.