NBC, Affiliates Iron Out Blanket Retransmission Deal

NBC and its affiliates have worked out the framework of an arrangement that would see the network handle retransmission consent negotiations with subscription-TV providers on behalf of its partner stations.

The bulk of the pact, which has been worked on off and on for the past two years, was ironed out at the affiliate board meeting May 16 in New York, the day of NBC's upfront presentation. The "proxy" deal would be optional for affiliates. NBC called it "another step toward further solidifying the partnership" between the network and its affiliates. Affiliates that opt in would hand over "proxy rights" to retransmission negotiations to the network. NBC affiliates board chairman Brian Lawlor described it as a one of a kind arrangement in broadcast television. "It's a brand new kind of deal," he said following the upfront presentation. "It completely changes the network-affiliate model." Indeed, the other major networks do not have a blanket deal with affiliates regarding retransmission. Such a deal eluded Fox and its affiliates board several months ago, and set the course for at times bitter negotiations between the network and its affiliates regarding the splitting of retrans cash as part of affiliation agreements. Last week, Fox announced it was parting ways with two affiliates, the divorce stemming from unmet retransmission demands.