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SNL Kagan: Affiliate Payments to Big Four Will Hit $1.3B by 2015
CABLE, SATELLITE AND TELEPHONE VIDEOservice providers will have to dig deep into their pockets over the next five years for reverse compensation fees, which could increase more than eight fold 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 affiliated stations pay their networks from their own retransmission-consent deals with distributors, will reach $146 million in 2011 and grow to $1.29 billion by 2015. At the same time, retransmission-consent revenue from network ownedand-operated stations will double from $861 million in 2011 to $1.7 billion by 2015, Kagan estimated.
CBS, FOX ON TOP
CBS and News Corp.'s Fox appear to be the networks that enjoy the biggest gains in reverse compensation, according to Kagan. The research firm expects News' reversecompensation revenue 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. NBCUniversal's NBC...