Originally Posted by WS65711
Only having seen the WWL side of the story (and not that I really care anyway since I don't subscribe to DirecTV), it appears that DTV is paying $XXX to broadcast "The Knitting Channel" or some such, while only offering to pay WWL $xxx. Maybe I'm missing something, but it would seem that DTV should pay something reasonably based on the number of viewers, or at the very least....... pay each content provider they broadcast the same amount. But they don't do that. Channels like ESPN of course demand MORE than The Knitting Channel, even though many people only watch ESPN on Saturday afternoon and Monday night. Why shouldn't WWL demand more, or at least the same?
No, I don't work for WWL or Belo, and I don't know anyone who does. But I can see their point.
Reading between the lines of WWL/Belo's argument, I think they may be comparing apples to oranges.
They're complaining that DirecTV is paying more for, for instance "TruTV" (I just picked a national "basic cable" channel at random) than they are for WWL, arguing that TruTV has "a small fraction" of the viewers than "CBS".
That's apples to oranges. There's little doubt that TruTV, because it is nationwide
has far more (total) viewers
than WWL which can only be seen in the Greater New Orleans area.
Suppose TruTV has 10% of the total viewers of all the CBS affiliates that DirecTV carries combined.
That would mean, in this overly-simplistic example, that DirecTV should pay 10% of what they pay in grand total to all the over 100 CBS affiliates they carry on their service
for TrueTV, and I guarantee that comes to more than they pay WWL (which is as it should be, because it's a channel they can sell to all their subscribers vs. a channel they can sell to only a very small percentage of them).
Be that as it may, broadcast TV makes their money off of selling commercial
time anyway, so money they get from cable and satellite providers is essentially lagnappe. (I realize it's become a signficant part of their revenue stream in recent years.)
I agree with sore_bluto. Why aren't these agreements boiler plate at this point? They've had many, many years to figure it out!