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Prather To Nets: No Retrans Sharing

By Harry A. Jessell
TVNewsCheck, Nov 9 2009, 3:38 PM ET

Gray Television COO Robert Prather wants no part of sharing his hard-earned retransmission consent revenue with the broadcast networks.

"It's based on our work and nobody else's work," Prather told analysts Monday afternoon during the third-quarter conference call on the group's earnings. "We ought to work hard to keep 100 percent of it."

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Prather urged other groups to present a "united front" in resisting networks' claim on retrans dollars, perhaps working through the affiliate boards or the National Association of Broadcasters.

The affiliates should not allow the networks to use "the old divide-to-conquer" to get at the money, he said.

It may be too late for that.

Last week, Fisher Communications CEO Colleen Brown told TVNewsCheck that Fisher agreed to pay ABC "programming fees" to ABC as part of a just-signed affiliation renewal, although she also stressed that the payments were not specifically tied to retrans.

Also, Belo CEO Dunia Shive acknowledged last week in a conference call with analysts that retrans sharing was on the table in her affiliation renewal with ABC.

NBC, CBS and Fox also have made known their interest in tapping the growing retrans revenue streams of affiliates.

Despite the alarms, Gray may be in better position than most. Prather noted that Gray's affiliation agreements don't come up for years — CBS affiliates in 2014, ABC affiliates in 2013 and nine of 10 NBC affiliates in 2012.

"This is something that we are all going to be faced with in the future."

Prather also seemed to be losing patience with The Jay Leno Show, the one-hour talk show that NBC scheduled at 10 o'clock this season in lieu of the usual lineup of scripted dramas.

"The Leno experiment is not working so far," he said. "I'm sure they'll stick with it longer than they need to....Their ego won't let them probably get rid of it soon enough."

"It's definitely hurting the lead in to the 10 o'clock, 11 o'clock news in some of our markets."

Gray's 10 NBC affiliates are "very important" to the company, he said, pointing out that the cash flow from the stations is about equal to that of Gray's 17 CBS affiliates.

"They [NBC] need some programming pizzazz, which they don't have right now."

 

Comments (6) - Post a comment

Bullmoose Nicknameposted 126 days, 40 minutes ago
Way to go, Robert! We affiliates have paid our dues many times over.
thelonepunman Nicknameposted 126 days, 33 minutes ago
The "local" stations are already paying the Nets for the rights to their programming. The stations also have to pay OTHER programming syndicators in order to fill up the rest of their broadcasting day.

The "local" cable companies are coming to the "local" TV stations to get access, not only to the stuff the Network is providing to the "local" station, but to that other "local" programming.

Why should the "local" stations HAVE to pay the Networks twice, in order to survive?

The Networks are already doing an "end around" the local stations with their satellite programming distribution...ala: DishNet and DirecTV...and loading up the transponders with their O&Os at the expense of the "local" stations themselves.

It used to be that the "local" station had control over what went over its airwaves and when they were able to air it. And the Networks used to pay for the priviledge to get into those "local" markets to air their stuff.

Then, along came FOX, following the acquisition of the NFC from CBS...then the business paradigm of Network Programming shifted to what we are experiencing today...

The "local" stations, (and some groups themselves) have become nothing more than cattle, penned in a kill-lot, waiting for the hand that will deliver the last financial blow to the back of their heads.

"MOOOOOOOO!"
*BANG*
*flop*

truelocal Nicknameposted 125 days, 23 hours, 24 minutes ago
Bob we need strong leaders like you to fight this battle. All group owners and single station owners have to fight for these dollars because the programming costs just keep escalating from the networks. Moonves comments stating the only reason that retrans are paid is because of prime time is ludicrous. If this was the case cable operators and satellite providers would have never started negotiating with every station nation wide. They could have just gone to four negotiations NBC, CBS, ABC and FOX and been done. Problem is the networks do not provide all the content that keep the subscribers paying. The local stations do with local content and news. The arrogance of CBS executives that they do not need the affiliates is par for the course yet we as affiliates invest in the local communities, our news departments and the Digital platforms. Guess what Networks you did not write any checks lately to us affiliates for these costs yet if you would like to start writing checks to support our outstanding local news product which leads into your mediocre prime time we will take them....but that is the only direction money is going to flow. Retrans is ours we negotiated it and we provide the true local content.
Cars Nicknameposted 125 days, 23 hours, 5 minutes ago
Sorry local stations, but you opened up Pandora's Box with demanding cash retransmission consent. If you thought that your program suppliers would not demand to share in the wealth then you are beyond naive. Today it is the networks. Tomorrow it will be the studios. Unfortunately for you, the next step is direct affiliation with cable and satellite, eliminating the middleman. Those discussions are already happening and will only intensify, particularly with Comcast and NBCU. If you think local news/content will save you from direct affiliation, you are sadly mistaken.
PSIPthing Nicknameposted 125 days, 12 hours, 39 minutes ago
actually, Comcast is unlikely to operate the NBC stations part of NBCU fort long, since that would require long-term waivers from the FCC, which is not favorably disposed towards Comcast. And, the NBC stations are a significant portion of the value of NBC. So, they either cast off the local stations, which are left to find a new network (or form one), or they cast off NBC with the local stations. All one has to do is to compare Comcast's coverage map with that of the NBC stations.
Mario Iacobelli posted 125 days, 6 hours, 55 minutes ago
Bob good call I am of the same thinking
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