Retrans Revenues Skyrocketing

Q1 revenue reports are out and broadcasters are proudly touting their earnings from the fees they’ve charged consumers for “free” TV. These fees are skyrocketing because TV groups are gobbling up stations in order extract maximum retrans revenues from consumers. In the last 8 years, these fees have climbed at 119 times the rate of inflation. And in the next 5 years, these companies will demand nearly $25 billion from consumers.

“Retransmission consent revenue increased $6.4 million, or 66%, to $16.1 million.”

—Gray Television 1Q Rev Climbs 17% To $91M, TV News Check, May 8, 2014

“Local net broadcast revenues, which include local time sales, retransmission revenues and other broadcast revenues, were up 49.6%.”

—Sinclair 1Q Revenue Climbs 47.8%, TV News Check, May 7, 2014

“The television segment reported a 27% increase in revenue to $1.59 billion that was driven by increased advertising revenue and continued growth of retransmission consent revenues.”

—21st Century Fox TV Revenue Up 27%, TV News Check, May 7, 2014

“Higher winter Olympic TV advertising, retransmission fees and political advertising boosted Graham Holdings’ Post-Newsweek TV stations in the first quarter.”

—Post-Newsweek TV Stations’ Revs Grow 34%, MediaPost, May 2, 2014

“Retransmission revenue of $9.8 million grew 85.6%.”

—Journal 1Q TV Revenue Up 12.6% To $46M, TV News Check, April 29, 2014

“Retransmission consent revenues grew nearly 50%”

—Media General Revenue Climbs 16%, Broadcasting & Cable, April 28, 2014

“Local revenues, which include local advertising, retransmission consent and website revenues, increased 9% to $108.1 million.”

—LIN Revenue Up 18% in Q1, Broadcasting & Cable, April 28, 2014

“Strong core TV station advertising revenue as well as higher retrans fees-related revenues helped contribute to double-digit gains for Meredith….”

—Retrans, Ads Send Meredith TV Revs Soaring 14.5%, MediaPost, April 24, 2014

“On the same basis, retransmission revenues were 66.4% higher in the quarter and totaled $87.5 million.”

—Gannett Same-Station TV Revenue Up 19.6%, TV News Check, April 23, 2014

“…Revenue increased 17%, driven by a 15.8% increase in advertising revenue due to strong ratings at the NBC broadcast network, as well as an increase in content licensing revenue and higher retransmission consent fees.”

—Olympics Boost NBC Broadcast TV Rev 73%, TV News Check, April 22, 2014