Fox Revenue Sharing with Affiliates

More news out on Fox’s plans to share revenue with affiliates.

From PaidContent:

“And while the rest of us were sleeping, Fox has done a precedent-setting deal with its 187 affiliates on new media revenue share, reports BW. The deal would allow stations to get a portion of the extra revenues for up to a year after they air a program.”

From Variety:

Moving forward, Fox this year will be able to repurpose 60% of its primetime programming on “non-linear” platforms, followed by 80% next year and a full 100% in year three of the deal. Affils will receive 12.5% of the revenue from any program that runs on a non-linear platform after its primetime broadcast run, and 25% of revenue from shows that hit the non-linear world before airing on the network.

“We now have complete flexibility to repurpose content broadcast on the network in a way that takes advantage of all of our new media opportunities,” Peter Levinsohn, president of digital media said. “The beauty of this deal is that we have created a structure with affiliates that makes them our partner. It’s a symbiotic relationship between network affiliates and content companies to maximize value.”

From Lost Remote:

It’s interesting to note that unlike the other three networks, Fox decided to complete an affiliate deal before launching any major digital programming initiatives.”

From Terry Heaton:

“Those in the industry who think that anything about their business model or brand will carry them into tomorrow are sadly mistaken. Local broadcasters are so far behind the curve on new media technology (except for podcasts, but that’s not really new media) that it will likely be too late when the rug is pulled out from underneath them. I’m amazed, for example, at the number of local station websites that aren’t written in XML, the language of unbundled media.

So if you’re an affiliate, and you’re thinking that sharing download and ad revenues with your network is the road to profitability, ask yourself this. Can I make more money as a pure content provider or as a company that helps people sort, filter and use all that content? Think about it.”

About Daniel Davenport

Daniel is a digital media executive with internet and broadcast experience. Daniel is currently the executive strategy director at THINK Interactive.

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