Programming fees have become so onerous as to threaten the future
viability of affiliates. Networks need to remember: If stations go
under, they take the network owners with them.
A large percentage of television stations in America are facing an
existential threat from their own networks that could lead to
destruction of the network/affiliate system.
After years of constant increases, some affiliates are now paying
their networks more in programming fees than they receive in
retransmission payments from cable and satellite companies. This
intolerable situation is hurting the viability of the future of our
business.
The problem lies in the fixed programming payments some networks
demand from their affiliates. Supposedly based on station
retransmission revenue, those payments do not take into account the
explosion of consumer cord cutting, as well as consumer migration from traditional MVPDs to internet-based cable systems.
https://tvnewscheck.com/business/article/are-the-broadcast-networks-killing-their-affiliates/
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