Kabel Deutschland pays RTL for HD channels

Jörn Krieger ©RapidTVNews | 28-06-2012

German TV group RTL is to receive a share of the additional fees cable operator Kabel Deutschland collects from its customers for reception of the HD version of the commercial channels, Kabel Deutschland spokesman Marco Gassen has confirmed to Rapid TV News.

"The agreement reached with RTL yesterday was arranged in recognition of both sides' business models, which means that RTL continues to pay carriage fees to Kabel Deutschland and in return will participate in the additional revenues," explained Gassen.

"This model is not new. It has already been in place in the carriage agreement with ProSiebenSat.1 since July 2011," said Gassen. He added that a revenue sharing model between cable operators and broadcasters has also been in place with pay-TV operators for many years.

Following lengthy negotiations, Kabel Deutschland announced a comprehensive carriage agreement with RTL yesterday (http://www.rapidtvnews.com/index.php...dd-rtl-hd.html) which, besides the distribution of the HD channels, also covers analogue and digital carriage of RTL's channels in standard definition as well as its pay-TV and video-on-demand services.

Previously, RTL also managed to reach an agreement with Unitymedia, Germany's second-largest cable operator after Kabel Deutschland, in which the cable company pays the broadcaster a share of the additional income generated from the HD channels (http://www.rapidtvnews.com/index.php...-with-rtl.html).

The fact that RTL pays carriage fees for usage of cable capacities is also strategically significant for Kabel Deutschland in the current carriage fee dispute with public broadcasters ARD and ZDF (http://www.rapidtvnews.com/index.php...escalates.html).