And you can credit telcos for creating the climate making further change inevitable. CBS Corp., for example, appears to be in negotiations with 20 U.S. cable TV companies about direct compensation for CBS programming distributed over those cable networks. That would be a big change. Verizon already pays CBS. CBS executives say the additional revenue could amount to "hundreds of millions" of dollars by 2009.
Historically, over-the-air broadcasters have been compensated in non-cash ways. Lower advetising rates or carriage of broadcaster-affiliated cable networks being cases in point. Highly-popular "cable only" fare such as ESPN always have been paid for on a "cents or dollars per sub" basis. That hasn't been the case for rebroadcast networks.
But as we've been noting, value chain disagreements are going to sharpen as IP business models are built.
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