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Showing posts with the label reverse compensation

Spotlight Feature: NBC stations getting ready to pay to be an affiliate

by Frank Macek In another sign that times are changing in the television industry, NBC executives have decided that NBC affiliate stations will begin paying reverse compensation for network programming, beginning with the renewal of their affiliation agreements after this Labor Day. In the past, networks would pay stations to be one of their affiliates. This often had the advantage of being an additional revenue stream for local stations and helped the network keep their affiliations with stations they considered critical to their success. With the increasing cost of production for shows and the high price of big sporting events, NBC has been forced to go the way of FOX which began the reverse compenstation process about 10 years ago. According to TV News Day, CW affiliates also pay reverse compensation to their network. What could this mean for a station like WKYC - one of NBC's top performing stations? It really depends. In bigger markets like Cleveland, NBC would be likely to ch...