Welcome to DU! The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards. Join the community: Create a free account Support DU (and get rid of ads!): Become a Star Member Latest Breaking News Editorials & Other Articles General Discussion The DU Lounge All Forums Issue Forums Culture Forums Alliance Forums Region Forums Support Forums Help & Search

onenote

(45,716 posts)
7. Fox gets big fees because it has popular services.
Thu Apr 20, 2023, 01:19 PM
Apr 2023

Fox's deals with the big multi-channel distributors -- Comcast, Charter, Cox to name three -- get it big bucks because those deals cover not only Fox News but a slew of other channels and services, including the Fox owned and operated broadcast channels, Fox Business, Fox Deportes, and some Fox sports channels as well as video on demand and other ancillary rights.

Cable operators pay the fees because they would lose subscribers if they didn't (and they can't collude with one another to all resist paying).

Does it suck that Fox makes so much? Yes. But for someone who doesn't like sports, the fact that ESPN gets even more than Fox in subscriber fees also sucks.

Finally, broadcasters generally were given a huge gift when Congress enacted the 1992 Cable Act "retransmission consent" provision which allows local stations to demand payment for carriage. Over the past 30 years I've worked on dozens and dozens of retransmission consent negotiations. Interestingly, despite the claim in the article that Fox has a history of "deceptive and aggressive negotiating tactics" my experience has been that, at least for the past 10 years, Fox has not been particularly aggressive nor have they been deceptive. However, affiliate groups, such as Sinclair and Gray, to name just two -- have been and continue to be extremely difficult and shady in those negotiations.

Recommendations

0 members have recommended this reply (displayed in chronological order):

Latest Discussions»General Discussion»Fox News wants a massive ...»Reply #7