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

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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.