Reverse compensation

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Reverse compensation, in

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during their programming.

Reverse compensation first appeared in the 1990s, with The WB Television Network receiving reverse compensation from several stations. In 2001, San Jose, California station KNTV agreed to pay $362 million over ten years to become the NBC affiliate for the Bay Area market, the largest such agreement to date. Shortly after, NBC bought KNTV when the station's owner ran into financial difficulty.[1]

The practice played a role in the 2006 affiliation drives of two newly announced networks,

Tribune Company, the two major station groups which did carry The CW, both filed for bankruptcy protection in 2008.[4] Tribune, which operated the largest group of CW affiliates at the time of the network's launch, removed the network name from its stations' branding for a few years, until management changes returned the network branding to most of their affiliates.[5]

In Canada, CTV attempted to move from a traditional network affiliation contract to a reverse compensation model in the early 2000s, which played a role in the disaffiliation of CHAN-TV in Vancouver, British Columbia and CJON-TV in St. John's, Newfoundland and Labrador from the network.

References

  1. ^ The Story At 11, Jeff Kearns, Metro (Bay Area), December 6, 2001
  2. ^ TV Station Execs Debate Choice..., MediaPost Publications, February 24, 2006
  3. ^ My Network TV Inks 17 Sinclair Affils, Katy Bachman, Mediaweek, March 6, 2006
  4. ^ Pappas Telecasting files for bankruptcy, blames CW ratings, Dow Jones May 10, 2008
  5. New York Times
    , December 8, 2008
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