Discovery CEO David Zaslav used his company’s third-quarter earnings call to offer a fairly extended analysis on how broadcast retransmission consent fees, especially for sports, are putting pressure on the U.S. pay TV industry.
Zaslav pointed out that the U.S. is the only broadcast television market that has retransmission consent, which he said is quite good for broadcasters but not so much for consumers and distributors that have to eat that cost. He also said it’s the only market where sports channels use their leverage to require full carriage of all their sports channels.
“Together with the fact that most sports channels are owned by the retrans broadcasters, you have a combustible combination,” said Zaslav, adding that the U.S. is also the only market with regional sports networks. “Sports has essentially been hyper-extended here to the point of ‘Are you serious?’”