CBS, DirecTV Renew Carriage Agreements

Retransmission fees increasingly lucrative for CBS

DirecTV and and CBS Corp. have renewed their carriage agreements covering CBS, Showtime, CBS Sports Network and Smithsonian Channel.

No terms were disclosed, but retransmission fees like the ones DirecTV will pay are becoming increasingly lucrative for CBS. A report last month from the research firm Sanford C. Bernstein found that CBS is on pace to quadruple the retrans fees it receives to $1 billion by 2016. The report said Fox and ABC are expected to make similar gains, but NBC is not because its largest distributor is its owner, cable company Comcast.

Also read: CBS to Quadruple Retransmission Fees to $1B by 2016, Report Says

“We are very pleased with these renewals,” said Martin Franks, executive vice president for planning, policy and government Relations of CBS Corporation. "DirecTV clearly recognizes the value our stations and our cable channels bring to the audiences we share, and we have once again demonstrated how two great companies can come together to forge mutually beneficial free market agreements.”

“This is great news for our customers, who will continue to enjoy CBS and Showtime quality content for many years to come,” added Derek Chang, executive vice president of content strategy and development for DirectTV.