BIA/Kelsey Sees Trend of Local Television Stations Reaping Increased Revenues from Retransmission Fees

6.5% of Total Station Revenues in 2012

CHANTILLY, Va. (April 9, 2013) – BIA/Kelsey, advisor to companies in the local media industry, reports that local television stations are seeing increased revenues from retransmission consent agreements, the negotiated fees arranged with local cable and satellite delivery systems to carry their stations. In 2012 BIA/Kelsey estimates that these amounts contributed an average 6.5 percent of total local television stations revenues. An increasingly significant stream of income, this source is expected to grow to 9.5 percent by 2017 as contracts expire and are renegotiated.

“Retransmission fees have become a noticeable revenue stream for local television stations but are also a much needed revenue source to support their investments in news and local programming,” said Mark Fratrik, vice president and chief economist, BIA/Kelsey. “They also reflect the changing arrangements between local affiliates and the parent networks.”

BIA/Kelsey’s calculation and forecasts of retransmission fees are based on the overall and expected growth in:

  • Television households
  • Cable penetration rates
  • Fees local stations are receiving from cable and satellite delivery systems
  • Fees local stations are paying parent networks for their share of these revenues
  • Amounts received by non-top four affiliates (CW, MY, and Univision).

 

About BIA/Kelsey

BIA/Kelsey advises companies in the local media space through consulting and valuation services, research and forecasts, Custom Advisory Services and conferences. Since 1983 BIA/Kelsey has been a resource to the media, mobile advertising, telecommunications, Yellow Pages and electronic directory markets, as well as to government agencies, law firms and investment companies looking to understand trends and revenue drivers. BIA/Kelsey’s annual conferences draw executives from across industries seeking expert guidance on how companies are finding innovative ways to grow. Additional information is available at http://www.biakelsey.com, on the company’s Local Media Watch blog, Twitter (http://twitter.com/BIAKelsey) and Facebook (http://www.facebook.com/biakelsey). Stay connected by subscribing to the firm’s bi-monthly newsletter.

For more information contact:

MacKenzie Lovings
BIA/Kelsey
(703) 818-2425
mlovings@biakelsey.com

Eileen Pacheco
For BIA/Kelsey
(508) 888-7478
eileen@tango-group.com

Robert Udowitz
For BIA/Kelsey
(703) 621-8060
rudowitz@biakelsey.com