Retransmission consent revenue is significant. Television station group owners in the United States continue to collect meaningful retransmission consent revenues from cable, satellite and telephone company distributors of their local station content. The old contracts consisting of advertising barter agreements and other non-material considerations have evolved into complex arrangements allowing for the distribution of a local television channel across a base of various different video platforms tied to a subscription to a linear cable, satellite or telco provider.
With greater complexity comes the desire for greater transparency. The need for more effective management of revenue streams becomes more readily necessary with an increase in contract complexity, as well as a demand from shareholders and stakeholders for more financial transparency. Fundamental accounting issues related to reporting, billing, subscriber management and cash application represent new challenges to companies who have legacy billing systems designed specifically to manage advertising revenue streams and not the transactions related to subscription and on-demand television models.
Broadcast television distribution is unique. The broadcast television business is different from cable programmers in that particular attention must be paid to the relevance of geography in the type of carriage and type of consideration a station owner will get from a distributor. Local television stations are carried according to their particular home Designated Market Areas (DMA) designation and they may be eligible for carriage and further considerations outside of their local DMA through a Significantly Viewed designation as defined by the FCC.
MAI is thorough and experienced. MAI has the experience and expertise to deal with all of the nuances contemplated in distribution and payment for retransmission of local television stations. The MAI Audit and Monthly Financial Management programs take in to consideration all aspects covered in the retransmission consent contracts station groups execute with all distribution platforms. No stone is left unturned in seeking to verify that the contracts that are negotiated and executed are performing to their fullest legal and financial potential.
MAI provides the following services for broadcasters: