Thursday, April 13, 2006

Fox Shares Revenue with Affilites

From Business Week:

"At a time when a string of new deals to offer current TV shows on the Web and for video-on-demand is further straining relationships between broadcast networks and their affiliates, Fox Television has signed a deal allowing its roughly 150 affiliates to share a slice of the new-media pie, BusinessWeek has learned. The deal could serve as a model for other television networks, such as ABC.

"This is a way to get the affiliates to stop whining. It's a negotiating chip," says Josh Bernoff, an analyst with Forrester Research. "A network that doesn't do this will just have to deal with it sooner or later in negotiating renewals of affiliate agreements."



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