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Sinclair Signs ABC Affiliation Pact for 9 TV Stations–Concedes That Part of Deal Is a Pass Through To ABC of Some of Sinclair’s Retrans Monies

Mar 29, 2010  •  Post A Comment

Sinclair Broadcast Group has signed a new affiliation agreement with ABC Network covering nine television stations, and as part of the deal Sinclair acknowledged that the agreement includes a license fee, based in part on retransmission consent revenue, MediaWeek reports.

According to the article, Sinclair said, in a statement announcing the deal, " ‘We believe that the pass through to the networks of a reasonable portion of the fees that broadcasters receive is a necessary and appropriate way to make sure that the networks continue to be able to provide the most popular programming on television,’ said Barry Faber, evp and general counsel for Sinclair. "Over time, we expect that the fees paid by multichannel video program distributors to acquire content will be reallocated so that the payments they make more closely correlate with the popularity of programming. As a result, the fees paid to broadcasters are likely to increase to more appropriate levels, which will allow affiliates to share these fees with the networks in a measured manner, while the local stations continue to benefit from this dual revenue stream."

In other words, Faber is saying that since broadcast programs are generally much more popular than cable programs, that more retans monies should swtich from going to cable programers to broadcasters. 

. ABC and other TV networks have been seeking a portion of TV affiliates retransmission compensation.
Mediaweek reports. The pact was signed after two extensions beyond the former affiliation agreement’s 2009 expiration, the trade publication says.
http://www.mediaweek.com/mw/content_display/news/local-broadcast/e3if745772b249372dd4fb5b2d1b88daba1

The renewal includes ABC stations in St. Louis, Columbus Ohio and Dayton, Ohio and covers about 5% of U.S. television households, Daily Variety adds. The pact is good through August 2015 and requires Sinclair to pay ABC a "license fee" to ABC to air its programming, Variety says. http://www.variety.com/article/VR1118016982.html?categoryid=14&cs=1

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