Fox To Negotiate Retransmission Carriage Fees With Cable/Satco Operators

Categories: TV Business

Written By

October 19th, 2009

rupert murdoch

This ultimately will be a big story for the economics of the broadcast TV business, if less so for the fans.

Rupert Murdoch wants to charge for access to news-oriented Web sites in the News Corp. portfolio. Now, he's determined to extract fees from cable and satellite operators to carry the Fox network.

At a company shareholder meeting Friday, the CEO said cable and satellite operators need to pay News Corp. "a small portion of the profits" they gain from offering the Fox network.

The model does not appear to be novel. News Corp. would seek retransmission consent fees from all distributors to carry the Fox-owned local stations. And the company has some leverage -- owning the Fox outlet in nine of the top-10 markets.

"We realize this is going to be a tough challenge," he said. "And we're determined to take a leadership position in creating an economic template for the future."

But CBS has pursued that path, as have multiple station groups.

via MediaPost.

 
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