Reverse compensation fees threaten U.S. broadcasters' bottom lines, says Moody's

NEW YORK - The major U.S. television networks' demands for compensation for the cost of creating content will put the earnings and credit quality of local broadcasters under more pressure over the next several years, according to a new report by Moody's Investors Service. Retransmission fees, which broadcasters collect from pay-TV operators that air their content, are the TV broadcasters' second-largest source of revenue, after advertising. But reverse-compensation fees that networks like ABC, CBS, Fox and NBC have begun putting in their contracts with broadcasters will dilute the value of these retransmission fees, and will negate the near-term increases in...