News Corp. chief operating officer Chase Carey told analysts Wednesday that the bulk of its broadcast television station deals with cable, satellite and telco distributors expire in the next two-to-three years and that the media giant will most likely seek retransmission consent cash.
Speculation has been rampant in the past few days concerning News Corp.’s request for retrans cash from distributors for its owned and operated as well as its affiliated stations, with some reports suggesting that Fox could ask for as much as $1 per month per subscriber for the O&O’s. While Carey would not speculate on pricing, he did say that it is getting tougher to compete on the broadcast side with cable networks. However, he added that retrans isn’t the cure-all for what ails broadcasting stations.
“Retransmission in many ways is a building block,” Carey said. “It’s very tough to compete with the cable channel business model of dual revenue streams without one for broadcasting. …I do think there are a lot of things you need to do to continue to build this business.”
He added that broadcast networks remain the “pinnacle of the content world.”