• by Wayne Friedman , January 5, 2009

Like local TV station Internet revenue, TV stations are counting on growing retransmission fees in the future.

 

In four years, Carmel, Calif.-based SNL Kagan says revenues from fees that cable operators, satellite distributors and telcos pay to local TV stations will triple to $1.3 billion. For 2008, it estimates that fees are $487.5 million.

Although cable operators will contribute $160.7 million this year--second to satellite operators at $287.2--cable's contribution will soar over satellite companies in four years' time. Cable will contribute $668.2 million, with satellite at $462.2 million and telcos at $201.4 million by 2012.

Stations have already seen a 30% hike in fees from cable operators to $124 million for the first nine months of 2008.

All this is good news for stations--especially if they see a drop in local TV ad revenues, estimated to be at least 6% in 2008. In 2009, that number could be at least 11%.

Sinclair Broadcasting Group is a retrans success story--it has seen big growth, doubling its retransmission revenues to $58.9 million in 2007 from 2006. Belo Corp. took in $22 million for the first nine months of 2008, versus $23 million in 2007. Hearst-Argyle earned $19.9 million for first nine months, against $21.6 million in all of 2007.