Tuesday, November 16, 2010

IR Blog Post 1 Compromise Benefits TV Viewers (3)

For more than two decades, television broadcasters and pay-television operators are taking part in the business deals of the marketplace. They use a process known as retransmission consent which boosts a staggering success rate. Almost 99 percent of these negotiations have been resolved and without disturbing the regular television service. Broadcast TV stations and pay-TV operators both are trying to reach a fair agreement which makes the system work so well. If one fails, the other will too. Each of these companies rely on the success of the other. Without the reinvestment of revenues, broadcasters viewers would have a lack of local news products and fewer people would pay for television. Most importantly, this retransmission revenue supports a local news and entertainment platform for more than 30 million Americans who are unable to get cable or simply can not pay for it.

Facts
  • Retransmission consent- boosts a staggering success rate
  • Broadcast TV stations and pay- TV operators rely on each other
  • The retransmission helps the 30 million Americans who can not afford cable
http://www.politico.com/news/stories/1110/45152.html

Questions
Why is the number of Americans who can not afford cable so high?
What is the reason for both the TV broadcast staions and pay-TV operators rely so heavily on each other?

Link
http://thehill.com/blogs/congress-blog/technology/129157-fix-broken-broadcast-retransmission-consent-system

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