Broadcast stations are looking to keep more of their distribution revenue by changing the way they pay networks for programming — especially sports — to a variable payment model from a fixed reverse-compensation fee.
Cord-cutting has slowed the growth of station retransmission-consent payments, which are calculated on a per-subscriber basis. If pay TV churn accelerates, retrans payments could shrink while networks continue to get their fixed fees from stations. That would pressure profit margins for the affiliates.
