Dish Network has taken a 7% stake in Rentrak, while agreeing to supply the measurement company with exclusive access to its set-top-box (STB) data until 2016.
In addition to 700,000 shares, Dish will receive $5.8 million in cash.
The stock and cash compensation is for past use of Dish’s data, which Rentrak has used since late 2010 to gain a toehold in TV measurement. Going back to 2008, Rentrak has not paid Dish any money, but the two have had a profit-sharing arrangement.
Profit-sharing will continue with the new agreement, where Dish will still receive 50% of an income stream generated from Rentrak TV measurement services. The previous deal, which was scheduled to lapse in 2013, did not give Rentrak exclusive access to Dish STB data.
Over the next three months, Rentrak expects to record a charge of $16.5 million due to the Dish arrangement.
Rentrak also receives STB data from AT&T and several cable operators. CEO Bill Livek said on a conference call Thursday the others are “comfortable” with the Dish arrangement and understand the stock-for-exclusivity concept. He said they want to remain in “a non-exclusive mode.”
The Dish agreement comes as Nielsen is launching a refashioned measurement service in local markets and looking to acquire more STB data. One of Nielsen’s suppliers is Dish’s competitor in the satellite TV business, DirecTV.
Dish’s 7% stake gives it slightly more equity than Mark Cuban’s 8% stake.
In the recently completed quarter, Rentrak expanded its client base to include 188 stations, which include stations owned by Hearst and Gannett. Rentrak’s revenues for its TV measurement business that serves networks and local stations rose 115% in the quarter as it continued to add clients to $3.7 million.
Revenues for its service that tracks video-on-demand viewing were nearly flat at $2.9 million. Rentrak will provide VOD measurement for Google’s TV delivery service in the Kansas City, Mo. area.
Overall, revenue was up by less than $1 million to just over $23 million. The company swung to a $644,000 loss.
Rentrak said it has an agreement with SymphonyIRI to use its data as part of a service attempting to link the impact of TV ad viewing on sales of consumer packaged goods.