Sook: Nexstar Broadcasting will double retransmission revenue

In a wide-ranging interview with Broadcasting & Cable, Nexstar Broadcasting CEO Perry Sook said he expects retransmission revenue to continue to grow and said Nexstar has helped hold back the economic problems facing the industry through its improvement in internet revenue:

Q: What are some of the battles coming up?

A: We have [agreements with] one satellite company and about two-dozen cable companies that expire on or before the end of the year. The rest expire throughout 2009, so we see a real opportunity. When we negotiated our first agreements for cash in 2005, we were the only car on the racetrack, for all intents and purposes. Now there are plenty of other folks out there racing. Maybe we could even draft behind some of the bigger players this time around.

Q; How much do you expect to get?

A: I can’t give specifics, but the guidance we’ve given was that we’d generated around $18 million in 2007 and we’ve guided for double-digit increases in 2008 and 2009.

Q: Do you see a different attitude from distributors toward retrans now?

A: I think that’s right. The conversations I’ve had to date in 2008 have been much more constructive than destructive. I don’t think any multichannel-video provider wants his or her competitor to have a virtual monopoly on distributing our product, so my sense is that the content providers and the distributors are working together constructively to reach an outcome that is acceptable to both parties.

Nexstar Broadcasting owns KSNF in Joplin and KSFX in Springfield and operates KODE in Joplin and KOLR in Springfield.