Reverse retrans compensation fees will skyrocket in the next five years, increasing more than eight-fold from an estimated $146 million in 2011 to nearly $1.3 billion by 2015, according to a new report from SNL Kagan.
In its new Broadcast Investor Report, Kagan estimates that reverse compensation, or the revenue that affiliate stations pay their networks from their own retrans deals with distributors, will reach $146 million in 2011, growing to $1.29 billion in 2015. At the same time, retransmission consent revenue from network owned and operated stations will double from $861 million in 2011 to $1.7 billion by 2015, Kagan estimates.
CBS and News Corp. appear to be the networks that enjoy the biggest gains in reverse comp, according to Kagan. The research firm expects reverse comp revenue at News Corp. to rise from $39 million in 2011 to $341 million by 2015. CBS will increase its reverse comp take from an estimated $28 million in 2011 to $368 million by 2015, according to Kagan. Comcast's NBC and Telemundo O&O's will enjoy the biggest percentage gain, according to Kagan, rising from $5 million in 2011 to $288 million by 2015. Rounding out the broadcasters, Disney's ABC O&O's will increase their reverse comp from $53 million in 2011 to $267 million in 2015 and Univision will hike its reverse comp take from $21 million in 2011 to $27 million in 2015, Kagan estimates.
NBC said in May that it was working toward blanket retrans agreements, which would give the network proxy power from affiliates in retrans negotiations. According to the Kagan report, details of those proxy agreements could come later this month.
