What Are Retransmission Fees?
Premier Communications has contracts with local TV stations that allow us to carry the ABC, CBS, NBC, and FOX channels on our network. These contracts are renegotiated every three years, and they set the price broadcasters charge us to carry their channels. These charges are known as retransmission fees.
Retransmission fees increase annually, and the next scheduled adjustment will take effect January 1, 2026.
These fees exist because of decades-old federal laws that give local broadcast stations the right to charge cable and satellite providers—like Premier—for the ability to retransmit their “over-the-air” channels.
Importantly, Premier does not keep or profit from retransmission fees. Every dollar collected goes directly to the broadcasters.
This issue is not unique to Premier. Every cable and satellite provider in the country that carries local channels is experiencing these same increased costs.
Retransmission Fees vs. Programming Costs
Two major factors determine the cost of Premier’s TV service:
- Retransmission Fees — What local broadcast stations (CBS, ABC, NBC, FOX, etc.) charge Premier to include their channels.
- Programming Costs — What national cable networks such as HGTV, ESPN, and others charge for their content.
New legislation passed in 2024 now requires Premier to combine both retransmission fees and programming costs into a single line item. Because of this change, and to make billing more consistent, Premier will now update both fees on the January bill. Previously, programming rates were adjusted on July bills.
“It’s Not Fair”—And We Agree
We understand how frustrating it is to see these costs rise each year. Customers are essentially being forced to subsidize local broadcasters who provide their channels free over the air—but charge cable and satellite companies (and ultimately viewers) to carry the exact same content.
Premier works hard to keep prices as low as possible, but we do not control these fees or how much broadcasters demand. If retransmission and programming fees are not paid, broadcasters can—and do—remove their channels from our lineup.
What’s Next?
Unfortunately, the cost of TV service continues to rise nationwide, with no signs of slowing. We anticipate $5–$10 annual increases in combined retransmission and programming fees.
To be completely transparent:
- Premier does not profit from TV service.
We simply pass through the fees we are required to pay. - The only way to reduce costs is to drop channels.
This is why Premier made the decision to drop Bally Sports North, and why we decided not to pick up the new Twins channel this past summer. While this prevented a mid-year programming increase, we understand many customers were unhappy about losing those sports channels.
However, keeping them would have driven costs even higher.
If you have questions about these changes or want to explore alternative services, our team is always here to help. TV continues to be a rapidly changing industry, and we remain committed to transparency as we navigate these challenges together.