A large percentage of television stations in America are facing an existential threat from their own networks that could lead to destruction of the network/affiliate system.
After years of constant increases, some affiliates are now paying their networks more in programming fees than they receive in retransmission payments from cable and satellite companies. This intolerable situation is hurting the viability of the future of our business.
The problem lies in the fixed programming payments some networks demand from their affiliates. Supposedly based on station retransmission revenue, those payments do not take into account the explosion of consumer cord cutting, as well as consumer migration from traditional MVPDs to internet-based cable systems.
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