The Eye plans to shift from its longtime home on Lin Media’s WISH-TV to Tribune-owned WTTV-TV as of Jan. 1. The reason boils down to dollars and cents: Lin and CBS had been renegotiating an affiliation agreement but were not coming to terms on reverse retransmission consent fee payments. Those are the fees that station affiliates now pay networks in exchange for receiving the sports and primetime programming that allow local stations to command significant retrans coin from local MVPDs.
Tribune’s WTTV agreed to CBS’ terms, and so CBS will be moving to channel 4 in the nations 26th-largest market after decades on channel 8. The move will displace the CW, which is a CBS-Warner Bros. joint venture, from the mothership WTTV to its digital multicast channel, WTTV 4.2.
CBS’ willingness to shuffle in Indianapolis sends a clear message to other affiliates that are facing renewal negotiations. CBS has repeatedly promised Wall Street that its revenue from retrans coin earned from MVPDs by its O&Os and reverse retrans comp from station affils will reach $1 billion by 2017 and $2 billion by 2020.
The Indianapolis deal, even coming at the expense of the CW, was read by Wall Street as proof that CBS intends to use its muscle with MVPDs and affils to hit those targets. The Eye’s campaign will likely put pressure on the bottom lines of some of the mega-station groups that have been cobbled together in the merger mania of the past few years.
After announcing the Indianapolis deal, CBS shares climbed 95 cents, or 1.6%, to close at $60.18 on Thursday. Lin’s stock fell 91 cents, or 3.7%, to close at $23.81.
variety.com
Tribune’s WTTV agreed to CBS’ terms, and so CBS will be moving to channel 4 in the nations 26th-largest market after decades on channel 8. The move will displace the CW, which is a CBS-Warner Bros. joint venture, from the mothership WTTV to its digital multicast channel, WTTV 4.2.
CBS’ willingness to shuffle in Indianapolis sends a clear message to other affiliates that are facing renewal negotiations. CBS has repeatedly promised Wall Street that its revenue from retrans coin earned from MVPDs by its O&Os and reverse retrans comp from station affils will reach $1 billion by 2017 and $2 billion by 2020.
The Indianapolis deal, even coming at the expense of the CW, was read by Wall Street as proof that CBS intends to use its muscle with MVPDs and affils to hit those targets. The Eye’s campaign will likely put pressure on the bottom lines of some of the mega-station groups that have been cobbled together in the merger mania of the past few years.
After announcing the Indianapolis deal, CBS shares climbed 95 cents, or 1.6%, to close at $60.18 on Thursday. Lin’s stock fell 91 cents, or 3.7%, to close at $23.81.
variety.com
