Saturday, February 17, 2007

Financial Details on Sinclair Re-Transmission Deal

UPDATE: Discussed in depth in a previous post, Broadcast / Cable Re-Transmission Agreements: Why Should We Care?, the details of the re-transmission agreement between Sinclair Broadcasting Group and Time Warner Cable were not originally available.

As a publicly traded company, Sinclair Broadcasting Group has reported some of the details of their agreement with Time Warner in their earnings statement for 4th Quarter 2006.

Sinclair owns and/or operates 58 stations and has signed re-transmission agreement with 75% of the cable systems in their local markets. According to the
Baltimore Sun, Sinclair reported today that this will generate an additional $48 million in 2007 compared to the $25 million they earned in 2006.

Sinclair anticipates that this revenue stream could double again by 2010 to almost $100 million.

The compensation will be distributed among stations based on market size and other factors, but just an average shows this to be an additional $827,000 per Sinclair station for 2007.

--Carter Cathey
(c) 2007

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