With cord-cutting continuing to accelerate -- now at around 7% per year -- one stock market analyst believes local TV station retransmission revenues of some $12 billion per year are in danger of
More significantly, says Richard Greenfield, media analyst at Lightshed Partners, for TV stations and other …
Wayne, that figure of $12 billion in retransmission fees---it may be a tad lower---is paid to the stations but they share the money with their networks to the tune of 50% or thereabouts. And much of the perceived value to the cable systems and satellite distributors is derived from network, not local station content. The latter consists almost entirely of local news---which is deemed valuable---plus syndicated fare and local sports.
I do agree that retransmission fees will probably begin to drop as cord cutting continues, and this poses a major problem as these incomes are just about all that stands between profitability and breaking even---or worse---for both the broadcast networks and their affiliates as well as most cable channels.
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Dish is the worse they'll not have local TV stations anymore which will hurt Dish in the long run in my opinion than not having the RSNs. Dish doesn't try they like to fight they lose most of the time and they'll lose more if they don't agree with the TV station groups.