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Not pimping the cable companies here, but Retrans has something to do with this as well.
Your local cable company is now paying the local affiliates of the Over the Air networks (typically ABC, CBS, NBC) for the right to retransmit their signals onto the cable network. Could a customer have an antenna instead? Sure and it would be free, but that would require switching between inputs on the television. Not having the local stations on the cable system would be hard for customers to accept.
In recent years, these costs have become a substantial part of the monthly fees that cablecos pay for programming (along with ESPN, Disney, etc.) and those costs are not going down. In fact, the scoop is that the networks have noticed that the affiliates have been successful and want a piece of the action from each affiliate. I understand this round of retrans is not expected to go smoothly.
stand by for more blackouts as the current round of retrans negotiations heats up this fall. |
