Nov
22
Why Cable Networks Will Keep Paying Through the Nose for Broadcast Reruns
Posted in: UncategorizedFXX’s deal last week to show “The Simpsons” in syndication set a record for the market in TV reruns with a cost in the ballpark of $750 million.
Cable networks have never been shy to pay top dollar for broadcast hits.
Cable channels once had to wait many years for their turn with a big broadcast hit. Syndication rights to sitcoms were originally sold first to broadcast affiliates, and then sold to cable in a subsequent cycle that could come as many as seven years later. TBS struck a deal for “Friends” in 1996, but the series didn’t actually appear on the channel until 2001. That window has closed significantly over the years, with studios recently selling sitcom reruns to broadcast affiliates and cable concurrently, Mr. Carroll said.
