Retrans Revenue to Grow at in Low to Mid-Teens in 2020, Says S&P
Retransmission consent revenue will continue to grow at a percentage rate in the “low- to midteens” in 2020, reported S&P Global Intelligence this week. Retrans agreement renewals from the latter half of 2019 will “spur” revenue growth in 2020, it…
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said. The decline of pay-TV subscribers will grow to 3 percent in 2020, but direct broadcast satellite video subscriber declines will slow “since AT&T disconnects weighed on the industry in 2019 due to churn from customers who were on two-year promotional pricing packages,” the report said. Higher rates of cable disconnects as cable MVPDs de-emphasize video packages will offset slower satellite losses, the firm said. “We expect growth among virtual offerings will continue to slow due to recent price increases and more subscription video on demand (SVOD) alternatives.” TV stations will lose fewer viewers in these subscriber declines because broadcasting is included in nearly all video bundles, S&P said. Rising affiliate costs will eat into the margin of broadcaster retrans revenue, the report said. “While we expect net retransmission margins will continue to decline,” net retrans dollars will increase in 2020 as “retransmission revenue grows at a faster clip than reverse retransmission fees,” it said.