TV Stations Seek Share of Networks’ Internet Revenue

LAS VEGAS — U.S. television networks and their local affiliates should share revenue from programming offered on new gadgets such as iPods, laptop computers or mobile phones, the head of the National Association of Broadcasters (NAB) said on Monday.

"Every new device is a potential user of our content and every new stream of programming is potentially a new source of revenue," said David Rehr, chief executive of the NAB, which represents hundreds of local television stations, at the trade group’s annual meeting.

"We want to be on new devices that haven’t even been brought to market yet," he added.

Already the television networks are experimenting with new ways to deliver shows to consumers, such as downloading them to computers and Apple Computer Inc.’s iPod digital music players, as well as streaming programs directly to consumers via the Internet.

Walt Disney Co.’s ABC television network earlier this month unveiled plans to offer some of its most popular shows, such as "Desperate Housewives" and "Lost," for free on the Internet in a service supported by advertising.

Rival CBS Corp. carried streaming video of the "March Madness" NCAA college basketball playoff games on a subscription-free, ad-supported basis, with much success. Networks have also tested digital and video-on-demand formats for airing shows soon after they first appear on broadcast TV.

"Networks and local affiliates must share in new revenue streams, as they are partners in building brands and creating value," Rehr said. "This will also help ensure the continued viability of the invaluable network/affiliate relationship."

ABC is the only major network that is a member of NAB. The others pulled out of the organization several years ago.

The networks and the affiliates have had a sometimes rocky relationship over the years, disagreeing over a variety of issues such as when the local stations can preempt national programming.

News Corp.’s Fox network signed an agreement with its 187 affiliates so it can air reruns of shows on the Internet while giving the stations a share of the revenue. Fox is the home of hit programs such as "American Idol" and "The Simpsons."

ABC has said it would also explore ways to bring its local broadcast affiliates into online offerings. Typically the networks keep the advertising revenue for commercials they sell, while the affiliates do the same for the ones they sell.