#reverse compensation

The network was unharmed by this summer's Time Warner Cable blackout.

The fees that cable and satellite operators pay local stations have produced big revenues, and some disputes. Now, networks want a share of these fees.

With broadcasters receiving ever-increasing retransmission fees from cable multiple system operators (“MSOs”), telco, and satellite providers, broadcast networks have recently begun demanding that some of the retrans revenues be returned to them. Often called reverse compensation, or reverse retransmission fees, networks argue that they are entitled to receive a part of their affiliate stations’ retransmission revenue as additional compensation for their network programming’s contribution to the station’s success.