Broadcast Retransmission Fees Will Cost Consumers
Are you frustrated by rising cable prices? You’re not the only one. Nortex Communications’ goal is to keep costs as low as possible for you and the programs you enjoy on the air.
Sometimes, there are factors beyond our control that impact costs. One factor is broadcast TV fees. Over the last few months, we have been negotiating fees with corporate broadcasters for the rights to carry broadcast signals from large corporate broadcasters such as ABC, CBS, FOX and NBC.
We strive to reach fair agreements with corporate broadcasters that allow access to the TV programs you have come to love and expect to watch – with the goal of reducing the threat of blackouts or unreasonable monthly fees.
That can be challenging when it comes to these negotiations as broadcast TV fees are a growing source of income for corporate broadcasters. They are not members of our community, so they are not negatively impacted by the outcomes of these negotiations as we all are.
We fight on behalf of our customers to try to negotiate the best deal possible, but corporations have dominant bargaining leverage in these negotiations to extract increasingly higher fees. We try to absorb as much of the costs as possible, but unfortunately, we must pass along some of those costs to our customers.
Therefore, your monthly cable bill will now include an amount increase.
We know you have many choices for TV and video viewing, and we share your desire for the lowest price for quality TV programming. Please visit keeptheconnections.com or tvonmyside.com for more additional information about retransmission fees and why this rate increase came about.
2017 Data Points for Retransmission Consent Negotiations
Retransmission Consent Fees
- Retransmission fees rose about 30 times over the last decade while network primetime audiences fell by more than half, per Nielsen and SNL Kagan.
- According to SNL Kagan, broadcast retransmission fees will cost U.S. consumers and satellite and cable operators $11.6 billion by 2022, up from $7.7 billion in 2016. That’s a 51% increase.
- Comcast, which owns NBC, expects retransmission consent fees of $1.4 billion in 2017, a 65% rise from $850 million in 2016, according to S&P Global Market Intelligence.
- CBS expects a 25% year-over-year rise in its retransmission consent fees and reverse compensation fees in 2017.
- To make up for lost profits, CBS is looking to claim $2 billion in retransmission fees by 2020.
TV Station Ownership and Viewership
- Broadcast TV viewership for the four major networks has dropped by 52 percent since 2006 per Nielsen.
- As of 2016, five companies owned an estimated 37% of all full-power local TV stations in the country, as identified in a Pew Research Center analysis of BIA Kelsey data. That figure is only expected to grow with Sinclair’s acquisition of Tribune.
- In 2017, there have been 145 blackouts so far, affecting TV viewers in nearly 100 markets, with the longest blackout lasting 64 days based on ATVA data as of April 25, 2017.
- So far in 2017, the biggest events pulled from the air during retransmission negotiations have included the NCAA Men’s Basketball Tournament, the Super Bowl, NFL and college football bowl games, the Grammys, and network TV premiers according to ATVA.
- Viewers in smaller markets are feeling the brunt of blackouts. Cities like Madison, Wisconsin, Baton Rouge, Louisiana, and Cincinnati, Ohio have experienced blackouts of 10 days or more already this year based on data from ATVA.