Thursday, December 11, 2008

Nexstar Broadcasting expects $20 million in retransmission fees in 2009

Nexstar Broadcasting, which led the fight to have cable companies pay retransmission fees for local stations' content, expects to receive $20 million in fees during 2009, according to an article in Broadcasting & Cable:

Nexstar President/CEO Perry Sook said the broadcaster stands to bag $20-$21 million in retransmission consent revenue this year, a gain from the $17.2 million it made last year.

With some 80% of its retrans “contract dollars” due to expire before the end of 2009, Sook—speaking at the UBS Global Media Conference in New York Tuesday--said Nexstar will see greater retrans gains in the near future.

“That will grow at a substantial double digit rate in the new few years,” said Sook, who added that retrans and emedia revenue will represent some 35% of the company’s EBIDTA in two years.

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

1 comment:

Anonymous said...

If retransmission is so good, why did Moody's down grade the stock? Could it be that there only success is in charging for retransmission and not in their core business of developing and selling audience totals? Ultimately, you would have to believe that your value to the cable companies is how many people want to watch your station. If you can't deliver that, then doesn't your value to cable companies go down?