Television Dispute Still at Stalemate
By RYAN NAKASHIMA
THE ASSOCIATED PRESS
Published: Thursday, December 31, 2009 at 1:26 a.m.
Last Modified: Thursday, December 31, 2009 at 1:26 a.m.
LOS ANGELES | As a midnight deadline approaches, Time Warner Cable offered an olive branch that could leave the Fox network and some of its cable TV channels on the lineup for millions of subscribers - for now. But an executive at Fox owner News Corp. indicated a signal interruption was likely.
Time Warner Cable CEO Glenn Britt said Wednesday the cable TV operator will agree to binding arbitration and any interim steps necessary to keep Fox channels on while talks continue.
"Consumers should not be held hostage during these negotiations. That's just wrong," Britt said in an interview Wednesday.
But in a note to employees Wednesday, News Corp. Chief Operating Officer Chase Carey said temporarily extending the current terms past Thursday would "simply extend the period of time that Time Warner profits from our marquee programming without fairly compensating Fox for it."
He also rejected arbitration as a possibility in a letter to Sen. John Kerry, D-Mass., who had pleaded for both sides to agree to uninterrupted television for football fans "through the college bowl season."
If a new deal isn't reached, programs that could disappear from Time Warner Cable Inc.'s lineup include "The Simpsons" and several football games - among them, the Sugar Bowl on Friday, the Cotton Bowl on Saturday and the NFL's final regular season contests on Sunday. Bright House Networks' cable TV systems also face a Thursday deadline with News Corp.
In Florida, two television viewers filed a lawsuit Wednesday against News Corp., seeking an injunction to ensure that the Fox broadcast of the Florida-Cincinnati Sugar Bowl contest would remain on Bright House's cable system. Circuit Judge Maura Smith in Orlando did not immediately rule.
Time Warner Cable has more than 13 million TV subscribers and Bright House has more than 2 million, though their dispute involving the Fox network only concerns 14 Fox-owned stations covering such markets as Los Angeles, New York, Dallas-Fort Worth and Austin, Texas and Tampa Bay-St. Petersburg and Orlando.
Besides the Fox broadcast network, six cable channels - FX, Speed, Fuel, Fox Reality, Fox Soccer and Fox Sports en Espanol - and certain regional sports networks were also up for negotiations throughout the Time Warner Cable and Bright House service territories. Unaffected are Fox News, Fox Business Network and National Geographic, which is partially owned by News Corp. Those three are covered by deals that aren't expiring yet.
Separately, TV station owners are also negotiating deals with several cable systems around the country. About 650,000 subscribers of cable TV through Mediacom Communications Corp. in markets as large as Des Moines and Cedar Rapids, Iowa, are also in jeopardy of losing Fox and CBS broadcast signals as a fee dispute with Sinclair Broadcast Group Inc. nears a midnight Thursday deadline.
Many of these disputes get resolved at the last minute with no disruption of service. Last year, Viacom Inc. threatened to pull Comedy Central, Nickelodeon and other channels from Time Warner Cable but the two reached a last-minute deal.
The last time a major broadcaster went dark on a cable TV operator was when The Walt Disney Co. asked Time Warner to pull signals from its 10 ABC stations in May 2000 in a fee dispute. Time Warner took the signal off for a day before succumbing to pressure and agreeing to an extension.
By RYAN NAKASHIMA
THE ASSOCIATED PRESS
Published: Thursday, December 31, 2009 at 1:26 a.m.
Last Modified: Thursday, December 31, 2009 at 1:26 a.m.
LOS ANGELES | As a midnight deadline approaches, Time Warner Cable offered an olive branch that could leave the Fox network and some of its cable TV channels on the lineup for millions of subscribers - for now. But an executive at Fox owner News Corp. indicated a signal interruption was likely.
Time Warner Cable CEO Glenn Britt said Wednesday the cable TV operator will agree to binding arbitration and any interim steps necessary to keep Fox channels on while talks continue.
"Consumers should not be held hostage during these negotiations. That's just wrong," Britt said in an interview Wednesday.
But in a note to employees Wednesday, News Corp. Chief Operating Officer Chase Carey said temporarily extending the current terms past Thursday would "simply extend the period of time that Time Warner profits from our marquee programming without fairly compensating Fox for it."
He also rejected arbitration as a possibility in a letter to Sen. John Kerry, D-Mass., who had pleaded for both sides to agree to uninterrupted television for football fans "through the college bowl season."
If a new deal isn't reached, programs that could disappear from Time Warner Cable Inc.'s lineup include "The Simpsons" and several football games - among them, the Sugar Bowl on Friday, the Cotton Bowl on Saturday and the NFL's final regular season contests on Sunday. Bright House Networks' cable TV systems also face a Thursday deadline with News Corp.
In Florida, two television viewers filed a lawsuit Wednesday against News Corp., seeking an injunction to ensure that the Fox broadcast of the Florida-Cincinnati Sugar Bowl contest would remain on Bright House's cable system. Circuit Judge Maura Smith in Orlando did not immediately rule.
Time Warner Cable has more than 13 million TV subscribers and Bright House has more than 2 million, though their dispute involving the Fox network only concerns 14 Fox-owned stations covering such markets as Los Angeles, New York, Dallas-Fort Worth and Austin, Texas and Tampa Bay-St. Petersburg and Orlando.
Besides the Fox broadcast network, six cable channels - FX, Speed, Fuel, Fox Reality, Fox Soccer and Fox Sports en Espanol - and certain regional sports networks were also up for negotiations throughout the Time Warner Cable and Bright House service territories. Unaffected are Fox News, Fox Business Network and National Geographic, which is partially owned by News Corp. Those three are covered by deals that aren't expiring yet.
Separately, TV station owners are also negotiating deals with several cable systems around the country. About 650,000 subscribers of cable TV through Mediacom Communications Corp. in markets as large as Des Moines and Cedar Rapids, Iowa, are also in jeopardy of losing Fox and CBS broadcast signals as a fee dispute with Sinclair Broadcast Group Inc. nears a midnight Thursday deadline.
Many of these disputes get resolved at the last minute with no disruption of service. Last year, Viacom Inc. threatened to pull Comedy Central, Nickelodeon and other channels from Time Warner Cable but the two reached a last-minute deal.
The last time a major broadcaster went dark on a cable TV operator was when The Walt Disney Co. asked Time Warner to pull signals from its 10 ABC stations in May 2000 in a fee dispute. Time Warner took the signal off for a day before succumbing to pressure and agreeing to an extension.