Affiliate Revenues Trump Ad Revenues For TV Cos.

from associate fees for many U.S. TV networks groups — now larger than promotion revenues — will continue to arise during a faster rate than promotion dollars in a coming

MoffettNathanson Research says that this year, associate fees — subscriptions and/or retransmission fees for TV network groups — are approaching to arise 9% contra (to $46.3 billion)
compared with prosaic expansion for promotion ($39.4 billion).

Next year, affiliates fees will stand another 9% to $50.6 billion with promotion inching adult 3% to $40.8 billion. Through a subsequent five
years, income from associate fees will have compounded annual expansion rate of 8% contra promotion during 3%.

Overall, U.S. associate fees normal 50% of a sum media attention growth. Last
year was a initial time associate revenues surfaced promotion revenues for media companies.

In sum dollars, however, a “other” difficulty — that includes domestic and
international module permit price sales and other revenues — maintains a largest income difficulty for media companies.

In 2015, it is estimated to stand 5% to $64.8 billion, going to $81.3
billion in 2020.

AMC Networks get a top commission of income from associate fees — 35%. Viacom is subsequent during 29%; Scripps Networks Interactive, 29%; Discovery Communications, 22%; Walt
Disney, 20%; Time Warner, 16%; and afterwards CBS, during 7%.

Unlike long-established wire TV companies with a story of receiving associate fees, CBS, and other promote network formed companies,
have been ramping retransmission fees in a final several years — that will continue to arise quickly.

Over a past 5 years, MoffettNathanson Research says CBS has grown retransmission
revenues by 34% and 21st Century Fox by 16% — this compared to mostly wire TV companies expansion in a mid-to-high single-digit commission range.

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