DISH Network Corp (DISH) Is One of Two Companies Disrupting Broadcast TV. Who’s The Other?

Retransmission fees are becoming increasingly important to over-the-air networks. Morgan Stanley expects ad rates to decline by 1.5% in 2013, meanwhile retransmission fee revenues are ballooning. CBS Corporation (NYSE:CBS) expects fees to quadruple from 2012 by 2016, and retransmission fees are expected to account for 70% of its television segment’s growth in that time.

The first channel to flip

If any of the big four do make a switch to cable anytime soon, the likeliest candidate is NBC. The company’s retransmission fees aren’t growing at the same rate as its competitors due to a conflict of interest with its parent company Comcast Corporation (NASDAQ:CMCSA).

Additionally, its low ratings mean ad revenues will likely not be affected as much. While it does have a football contract, it hardly compares to the plethora of Sunday afternoon games on FOX and CBS that restrict their moves. Finally, a move to cable will allow NBC to create programming free of the FCC’s restrictions in an effort to boost ratings.

In all likelihood, these media giants will need to find a better solution than litigation. They’ve long lagged behind technology – VCR, DVR, digital file sharing. Dish Network and Aereo are just leading the way in the next wave of technology. Their intentions aren’t criminal, but to provide the consumers with what they want. Broadcasters ought to try and do the same.

The article 2 Companies Disrupting the Broadcast Television Industry originally appeared on Fool.com and is written by Adam Levy.