Fox TV Net Shares New Media Rev. With Affils

In a departure from the other TV networks, Fox Television Network has worked out a revenue-sharing agreement with its 150 station affiliates covering any ancillary distirbution deals for network programming through video on demand, the Internet or mobile devices.

In the works for several months and finalized in the past few weeks, the deal is crafted as a six-year extension of the network's NFL affiliate agreement.

"It's a groundbreaking deal; there isn't another deal out there like it for the other networks," said Brian Brady, president and CEO for Northwest Broadcasting and chairman of the Fox affiliate board. "It's the beginning of a change in the relationship between the affiliates and the network that's needed to happen for a long time."

In the past few months, ABC, CBS and NBC networks have all announced several ancillary distribution deals, making select prime-time programming available on iTunes, on the Internet or through VOD. But so far, station affiliates, which have already been squeezed out of compensation for clearing network programming, have been left out of the networks' multiplatform deals and any potential profits.

Fox's deal could help it reap profits in the long run, argued the affiliates. "Fox was visionary enough to realize that if there is going to be a market in [ancillary distribution deals] that by partnering with affiliates, they'll have a greater marketing platform with which to push this stuff," Brady added.

Except for offering FX's 24 as a VOD option on News Corp.'s DirecTV service, Fox Television has not yet announced any multiplatform distribution deals.

In the coming months, Fox is expected to join other networks in announcing ancillary distribution deals.