Barton Crockett: Okay. And then following up on that, what’s your sense of the prospects for that in terms of €“ do you think that there’s a do you think there’s kind of unanimity? Is there any political kind of posturing that could get in the way of sunsetting?
ChrisRipley: There is broad industry consensus around this transition and moving. Ultimately, it’s not good for anyone, not good for the consumer, not good for the industry to have to support two different standards. And so the industry is 100% behind the notion of sunsetting 1.0 and supporting just one standard. And from a consumer perspective, it makes no sense to have two standards out there as well in terms of the promise of what 3.0 can deliver. The consumer won’t be fully realized until we fully make that transition. So it’s good for the consumer, the industry is on board. I don’t believe there really is any reason the SEC wouldn’t want this because it’s very pro-consumer. And it’s just a matter of getting through the process.
Barton Crockett: Okay, that’s very helpful. Thank you.
Operator: Your next question is coming from Steven Cahall at Wells Fargo.
Steven Cahall: Thank you. So maybe just to start off on retrans. So Chris, you talked about it now being down for the year. I think the prior guide was down low single-digits. I guess the churn is probably the delta in there, but I would just love your perspective on maybe what’s changed since the last update on retrans. And kind of a bigger point here is, I think you’re the only broadcaster that’s actually seeing gross retrans revenue down on a year-on-year basis. I was wondering if you have any view as to why that might be. Do you think it’s just the structure of how the pricing is done in your deals? Or is there anything else that’s different in your retrans negotiations versus your peer group?
Lucy Rutishauser: Yes. So Steve, I’ll take the first part of that question. So we previously pointed to 2023 net retrans to be down low single-digit percent. And that was really given that the distributor renewals don’t happen until the back half of this year for us. However, recent MVPD subscriber reports, which you all have seen reflect the churn is increasing. So if that continues, our 2023 net retrans could be lower than our previously €“ previous commentary, which was down low single-digits. What I’ll say though right now is we’re not ready to provide either a new outlook or we confirm that prior guidance. And the reason being is we’re only 50 days into the year. We’re seeing subscriber churn by the MVPDs increasing, but industry reports are still showing churn to moderate.
So right now, we’re not either reconfirming or reguiding for that low single-digits. But I do want to point out, as Chris mentioned, because we have so many renewals that come up at the back half of this year and into 2024, we are still calling for the three-year CAGR to grow low single-digits because we can control rates, right. We negotiate those, but what we can’t control is to churn and really what 2023 is all about is where the churn goes.
Chris Ripley: Yes. And just to reinforce that and address your specific question around us versus what other broadcasters maybe seeing is, this is the confluence of various timing events that are driving the outcome in 2023. 50% of our subscribers come up for renewal in the back half of 2023 and 40% are front-end loaded to the beginning of 2024. So that’s 90% of the subscribers coming up in a pretty short window. And with increased churn, that’s hitting the front part of this year without having the benefit of step-ups on those renewals. So that’s what’s really happening here in terms of just timing of our contracts.
