CBS WANTS SMALLER CABLE NETS TO PAY FOR ITS RETRANSMISSION FEES

CBS is asking cable operators to use some of the funds that currently go to pay smaller, “niche” cable outlets to cover the cost of increased retransmission-consent fees to the networks, the New York Post reported today (Thursday), citing unnamed sources. The move, which CBS says would result in keeping cable rates to subscribers at their current level, has, according to the Post, “struck dread into the hearts of many smaller cable stations, who worry that a decrease in their fees would drive them out of business. The Post cited figures from NSL Kagan showing that the average cable network channel earns 20 cents per subscriber per month, with that figure weighted by a $4.08 monthly fee to ESPN and a $2.37 fee to to Fox Sports Net. All other channels receive 99 cents or as little as a penny per subscriber. Each of the television networks is seeking a fee increase of $1.00 per subscriber per month.