Nexstar reports 35% gain in retransmission revenue in Q4
Nexstar Broadcasting said Thursday that it saw revenue from retransmission-consent fees it collects from cable operators and satellite TV providers jump 35 percent to $10.3 million during the fourth quarter.
Retransmission-consent was the biggest revenue driver for the local broadcaster, which saw political ad revenue plummet 91 percent to $2 million. Local ad revenue increased 4 percent to $49.3 million during Q4.
Nexstar operates NBC, CBS, ABC, Fox and other network affiliates in several states, including Maryland, Utah, Florida, Texas, New York, Louisiana and Illinois. In December, Nexstar CEO Perry Sook predicted that cable operators and satellite TV providers would have to shell out $2 monthly per subscriber for retransmission consent within six years.
Nexstar said that it generated $37.3 million in retransmission-consent revenue in 2011, which was a 25 percent increase from the $29.9 million that it collected in 2010. The broadcaster has previously pulled the signals for its Big Four affiliates from local cable operators that resisted increased retransmission-consent fees, including systems owned by Cox Communications and Cable One.
- see the earnings release