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Tribune and CW at an impasse over OTT ambitions


The Frog

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CBS's and Warner Bros.' interest in streaming the CW as a pay OTT service is being spurred by their inability to renew an affiliation agreement with Tribune Broadcasting, according to sources familiar with the negotiations.

 

The primary sticking point is money, the sources say. Tribune has always paid reverse comp, but is balking at the network's demands for more.

 

In recent years, Tribune's CW stations have begun receiving retransmission consent payments from MVPDs, but the revenue is said to be a fraction of what Big 4 affiliates receive.

 

Money is not the only problem, the sources add. Tribune is insisting on digital rights to the CW programming within its market, the sources say. To do what is not clear. And it is demanding another long-term deal.

 

Both are non-starters for CBS and Warner Bros., the sources say.

 

Frustrating the CW partners is that other major groups with affiliates, including Sinclair, have reupped with little trouble, the sources say.

 

The CW would offer its programs as part of a linear channel as well as individually on demand for a modest monthly fee — perhaps $2 or $4. CBS All Access, an OTT service comprising the local CBS O&O or affiliate as well as on-demand CBS shows, goes for $5.99 a month.

 

If CBS and Warner Bros. go the OTT route, they would not pull the plug on the broadcast network, the Bloomberg story says. Rather, it would be simulcast on the OTT platform, somehow compensating broadcast affiliates for the loss of the linear exclusivity.

 

The sources say the CW has other options for moving forward without Tribune. Among other things, it could seek out other broadcast affiliates in the 13 Tribune markets. Or, in the half dozen Tribune markets where CBS has an O&O, including the top three markets, it could put the network on a subchannel of the O&O.

 

Finding other major-market affiliates could get tougher. The FCC incentive auction this spring, in which it will buy TV spectrum to sell to wireless carriers, is expected to winnow the ranks of stations, particularly in the major markets.

 

Tribune itself indicated that it is interested in selling at least some of its stations. It argued for auction rules that would maximize the value of stations in the auction.

 

Tribune has options, too. If it doesn't sell its CW affiliates in the auction, it could produce or acquire other programming to replace CW.

 

http://www.tvnewscheck.com/article/91468/tribune-impasse-is-behind-cw-ott-option

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I was gonna say that WTTV would be affected, but then I remembered that The CW is now on MG-owned WISH-TV 8.

 

Still though, a big story indeed.

 

You know who's really gonna get hurt by all of this? CW stations with local news departments (WPIX, KTLA, WGN, WISH, WCCB, XETV, KDAF, KIAH, etc.)

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You know who's really gonna get hurt by all of this? CW stations with local news departments (WPIX, KTLA, WGN, WISH, WCCB, XETV, KDAF, KIAH, etc.)

 

Some of the stronger stations such as KTLA and WGN will probably benefit if the CW is lost. I know on KTLA the CW programs are very low-rated and often the station comes in last place. Its lower-rated than many other dayparts. People tune in after the CW primetime to watch the news at 10, often surging by more than 50%.

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You know who's really gonna get hurt by all of this? CW stations with local news departments (WPIX, KTLA, WGN, WISH, WCCB, XETV, KDAF, KIAH, etc.)

 

Believe WCCB's CW contract doesn't end til 2017-2018, they're not Tribune anyway.

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If that's the case, then say goodbye to The CW on WSFL 39 and hello to The CW on WBFS 33. Because I know that CBS will try to move The CW to WBFS 33 here and get away from MyTV.

 

In L.A., I'm sure CBS would do the same thing with KCAL should KTLA lose the affiliation.

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Chicago could be interesting....given that WBBM does not have a duopoly counterpart. If they were dead-set against putting the CW on their .2, they would have to either buy WPWR or affiliate with (or buy) WCIU. I wonder if Weigel would sell out and use the proceeds for their growing diginet business....

But doesn't WCIU have diginets of its own from Wiegel?

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Chicago could be interesting....given that WBBM does not have a duopoly counterpart. If they were dead-set against putting the CW on their .2, they would have to either buy WPWR or affiliate with (or buy) WCIU. I wonder if Weigel would sell out and use the proceeds for their growing diginet business....

 

WPWR won't sell (Tribune tried to buy them in exchange for FOX getting KCPQ). Perhaps WJYS could be in play (if they don't sell out in the spectrum auction)? It would be WLNY all over again.

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Chicago could be interesting....given that WBBM does not have a duopoly counterpart. If they were dead-set against putting the CW on their .2, they would have to either buy WPWR or affiliate with (or buy) WCIU. I wonder if Weigel would sell out and use the proceeds for their growing diginet business....

 

WCIU has two Independents under one channel... 26.1/WCIU - The U and 26.2/The U Too. If WCIU was bought by WBBM, any one of those subchannels would fit perfectly with The CW.

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The CW will be hurt more than anything. A lot of those stations can be just as successful as independent stations. It would be interesting if KCAL 9 becomes a CW station should CBS strip it away from KTLA. They've been an independent station since ditching DuMont back in 1956.

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What about WGNT in Hampton Roads? It was a UPN/CW O&O and I think is one of the top UPN/CW stations in the country, so where will the CW affiliation go? WSKY? WTVZ? Or a subchannel of WVBT or WAVY?

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Will this affect KMAX? or no? i know its a CBS O&O Station By KOVR.

No it won't, nor will it affect KBCW, and besides, Tribune already owns KTXL there. But what about WDCW? What station in DC will the CW move to if Tribune doesn't renew the CW affiliation?

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