Broadcast Exec: Even With Bigger Retransmission Fees “The Gravy Train Is Over”
Earlier I posted on what the broadcast networks might do with the new revenue stream of increased retransmission fees. My conclusion was the new revenue stream wouldn’t lead to increased investment in programming.
At least one unnamed “top broadcast executive” will continue to focus on containing costs of production according to a story from The Hollywood Reporter on retransmission negotiations:
Despite providing a much-needed second revenue stream for broadcast networks, retransmission-consent fees — still dwarfed by ad money as the networks’ main financial source — are not panacea, a top broadcast executive warned.
“We’re starting on a path to get back to being a profitable business, but broadcast producers still need to learn that the gravy train is over and learn how to produce programs more effectively,” the executive said.