Disney Positive on Retrans Fee, Pay-TV Alternatives18 Sep, 2013 By: Doug McPherson
MONTEREY, Calif. – Revenues from retransmission revenues could surpass $3 billion in 2013, says media analytics firm SNL Kagan. MediaPost reports that some TV networks believe they might see $400 million to $500 million per network per year by 2015 – and as much as $1 billion a year by 2017.
But Jay Rasulo, senior executive vice president/CFO at Walt Disney Co., speaking at a Bank of America/Merrill Lynch media conference, said it’s “very hard to compare companies' networks forecast when it comes to retransmission. I wouldn’t read too much into it.”
He added that network groups are different – depending on the size of their stations, what negotiation cycle they are in regarding these deals, and their TV station performance.
MediaPost says Rasulo is confident that Disney’s ABC stations will get their fair share – just looking at viewership: “We are No. 1 in seven of eight markets where our stations are.” In the TV advertising market, Rasulo said, “It’s pretty good.” And he’s happy the pricing and volume in the TV upfront market.
It’s estimated the ABC network pulled in cost-per-thousand viewer price increases (CPMs) in the 7-percent to 8-percent range in July.
Disney continues to seek new pay TV system alternatives and told MediaPost, “With strong content, however the pay TV business evolves – from traditional multichannel video program distributors’ ecosystem or an over-the-top provider of various sources or maybe a full over the top MVPD supplier – when you step to the table with great content, you are in the driver's seat.”