Murdoch/FOX Seek Retransmission Fees

In a statement at an annual shareholders meeting Rupert Murdoch announced that News Corp, which owns FOX, will start seeking retransmission fees from cable and satellite affiliates. For those of you who don't know, retransmission fees are fees that cable and satellite affiliates pay to the broadcast network for the right to retransmit the broadcast signal to their subscribers. Aside from FOX, CBS is the only other network to have negotiated retransmission fees in the past few years. During the meeting Murdoch stressed that "the broadcast business can no longer be supported by ads alone". Basically, News Corp/FOX wants "fair compensation", which Murdoch believes to be a small share of profits from distributors.

I think it's great that someone important in the television industry is not only acknowledging that the current broadcast television business model is failing, but is actively coming up with ways to change it. I'm not saying that charging retransmission fees is going to save the industry; however, it's refreshing to see a network with enough confidence to try something new. I suggest the other networks follow Murdoch's lead.