ABC, Affiliates OK Two-Year Deal
NEW YORK (Hollywood Reporter) -- As expected, ABC’s affiliates have approved a new two-year deal retroactive to Aug. 1 that runs through July 31, 2004. A cornerstone of the deal calls for stations to contribute $34 million toward ABC’s NFL expenses in exchange for the network’s continued giveback of more primetime ad inventory to the stations as well as keeping a 25% limit on ABC’s repurposing of its primetime entertainment lineup on cable networks. Most important for stations, ABC agreed to include so-called “assignment” language, under which the network will no longer have the right to renegotiate the terms of its affiliation deal if a station gets sold. Previously, owners of ABC affiliate stations were handicapped in negotiating with prospective buyers because they could not guarantee that their station would remain an ABC affiliate.
NEW YORK (Hollywood Reporter) -- As expected, ABC’s affiliates have approved a new two-year deal retroactive to Aug. 1 that runs through July 31, 2004. A cornerstone of the deal calls for stations to contribute $34 million toward ABC’s NFL expenses in exchange for the network’s continued giveback of more primetime ad inventory to the stations as well as keeping a 25% limit on ABC’s repurposing of its primetime entertainment lineup on cable networks. Most important for stations, ABC agreed to include so-called “assignment” language, under which the network will no longer have the right to renegotiate the terms of its affiliation deal if a station gets sold. Previously, owners of ABC affiliate stations were handicapped in negotiating with prospective buyers because they could not guarantee that their station would remain an ABC affiliate.