Reverse comp called a 50-50 proposition


Dollar SignA financial executive at Gray Television says that things may change down the road, but at the moment, it looks like the standard formula for splitting transmission consent income between stations and networks is to cut right down the middle.

According to a Media Post report, Gray CFO Jim Ryan said that although he suspects the networks may want a bigger cut at some point, the 50-50 model appears to be taking hold as the current standard.

He said the factors influencing the formula going forward will include the ultimate size of the retransmission pie, as well as the how the income fits with the needs of each party.

However, it plays out, there is a strong card in the hands of local broadcasters. Ryan commented that the networks are aware that they need strong affiliates to get the programming into each DMA, a fact that will mitigate any desire to scoop up as much of the retrans income as they can.

According to Media Post, Gray has a new deal with NBC but faces expirations with the remaining big four networks by year’s end.