Time Warner Cable Might Lose Fox Stations in Dispute Over Fees
For the last two decades, cable companies haven’t paid so-called retransmission fees to over the air broadcasters. In return, the broadcasters have received prime locations on cable systems. With the recent decline in ad revenues, that’s seeming like a less favorable arrangement for the likes of Fox. News Corp (owner of Fox and associated channels) is now going after Time Warner Cable demanding those fees be paid. If Time Warner doesn’t relent by week’s end, News Corp plans to pull their content from Time Warner’s system.
News Corp owns 27 stations including Fox, FX, and National Geographic. The fees would likely cost Time Warner about $1 per subscriber each month. The cost would probably be passed on to customers. However, Time Warner has thus far refused to pay up, triggering an ad war. Both sides have started running opposing ads designed to get customers riled up.
The whole thing feels like another attempt by Rupert Murdoch to extract more value from his existing properties. “We realize this is going to be a tough challenge, but we’re determined to take a leadership position in creating an economic template for the future,” Murdoch recently said to investors.
The tide has been turning this way in recent years, but most broadcasters only get pennies per subscriber. CBS reportedly struck deal with Time Warner for about $.50 per subscriber. The demands from News Corp are substantial by comparison. Who’s in the right here? Do you think they’ll reach a deal at the last minute; is someone just bluffing?

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mikeart03a
December 31, 2009 at 9:59pm
To be honest, I'm tired of all this cable war crap. I'm a canuck and yes, I do believe that our local stations do need a little more promoting, but not at the expense of us viewers. Also, I only watch the local station for my news, upcoming local events and weather. Oherwise, they play the same crap that most of the other stations play. The only stations that I normally watch are Space, Spike, Discovery (love them mythbusters), TLC, and HGTV. To be honest, why don't the cable stations just suck up and pay up without boning us even more... I remember when our cable (when I was younger) about 10 years ago was only $35 for the full package, now it's $55 (after taxes and other provinical fees) and it's only going up. I pay almost a buck a channel and I only have 50 channels... Hell, even the basic digital package is the same price for the same amount of channels...
- mike_art03a
Owner, Network Admin
Michael Artelle Online Solutions
http://www.michaelartelleonline.com
michael.paiement@sympatico.ca
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Trooper_One
December 30, 2009 at 12:35pm
Good, hopefully no one will watch that garbage channe, and will die out due to new tech and business model on the horizon (hopefully too Rupert Murdoch from the old school will be gone too).
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Mr_Histamine
December 30, 2009 at 8:08am
While both companies are incredibly greedy, and could care less about their customers - I'd have to side with Time Warner. If the prices go up, it affects we the consumers adversely (whether we like it or not), while pouring millions more into the pockets of those who - quite honestly - don't need it. If I were TW, I'd let them remove their programming for as long as they want.
local NBC affiliates tried the same thing last year, but I haven't heard what became of that stand-off (all I know is, the channels disappeared and are now back), and I think Viacom won, because my rates have gone up - so we'll have to see what happens with FOX.
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Please deposit your pride, life, and other garbage in the receptacles at the back of the theater before you leave. Thanks!
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Nailer669
December 30, 2009 at 5:58am
It would be nice if we could only pay for the channels we wanted. I don't really see that happening. All the small channels would probably go under without having the needed income to stay alive. I can't even get cable where I live, so I have to have either DirecTV or DISH. If I didn't have kids, I wouldn't even have TV. I only watch about 5 channels out of about 200, yet I pay almost $90 a month.
People need to go outside and actually do things insead of sit down and waste time. Everyone would be better off if TV just didn't exist. Yes, that is hypocritical since I actually watch TV an hour or so a night, but I wouldn't shed a tear if it went away.
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MeTo
December 30, 2009 at 8:21am
Amen! There are a lot better things to do then to watch the boob tube all day. 200 channels and nothing on.
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lunchbox73
December 30, 2009 at 7:13am
I've been dreaming of that for years, it would be awesome. Imagine going online and checking only the channels you want and pay $.50 per channel or whatever (just off the top of my head). You're right though, it'll never happen because networks like CHILR and Lifetime Movie Network would get killed.
This whole "roll over or get tough" ad campain from TW has been really laaaame.
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ItsNeverEnoughPower
December 30, 2009 at 5:51am
How many of you that have Time Warner got a flyer in the mail saying your rates are going up? I dont watch enough TV as it is and if I could get out of having to have it in the package I have I would. They are no worse then Murdoch when it comes to wanting the money they think is due to them.
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big_montana
December 30, 2009 at 5:06am
Ryan, when will you write a blog that is factually correct? Over teh air briadcasters do get paid rights fees, just less than say an ESPN does. Yes, this is about money, but Fox wants the Fees being paid to them to be increased. In years past, over teh air broadcasters would charge more for their cable holding like ESPN, and less for their network counterpart that they also owned (ABC) hoping the cable station would subsidize the network channel. Networks like ABC, NBC, Fox and CBS are now losing money as it costs considerably more to create and air programming than it did ten years ago. You also forget that the networks pay their affiliates to air their programming, something a cable channel does not have to do. Frankly, I can see free TV going the way of the dinosaur and all the networks channles becoming cable stations, causing everyones cable bills to increase.
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MrHorspwer
December 30, 2009 at 4:44am
Ol' Rupert must really be hurtin' for cash these days, trying to milk cash out of every possible source. Pretty soon, the only people who will be supporting News Corp or any of their holdings will be the nutty right-wingers willing to pay for it.
Even so, with the coming of a new Comcast-owned NBC, I fear that the airwaves will soon be run even more by money-hungry executives who can't seem to figure out how to make a profit within their medium. Hmmm, that kinda sounds like the RIAA...
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nekollx
December 30, 2009 at 10:55am
Where every network is "primium" or "pay per view". Where the Digital broadcast revelotion is moot since nothing is on and you NEED a cable box to just watch basic channels.
I see a world where Fox is 505 not 5, and Chanel 11 is not the WB but instead "Time Warner Movies on Demand"
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sweetnsassymj
December 29, 2009 at 8:23pm
We are experiencing a similar thing up here in the Great North between the cable companies and local tv station providers. On the cable side they are saying that the local tv providers earnt $400 million dollars in profit so why should the cable company have to pay to help them out to support local canadian made content, meanwhile the local tv providers are saying that the cable companies earnt $2 billions in profit and therefore should help the local tv providers but not pass on the cost to cable customers. The Canadian Radio-television Telecommunications Commission (CRTC) is trying to stay out of the debate atm but it looks like they will have to step in to do something about the debate because the ads are really getting nasty on both sides! There has already been a few loses of local tv stations in most of the provinces up here and I will bet there will be more to go in time to come if this issue isn't sorted out quickly.
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Biceps
December 29, 2009 at 8:02pm
The cost will be passed onto the consumer. If we are lucky, and demand it, consumers MIGHT finally get a choice of channels for our money, instead of the current ridiculous packages. If we have to pay for every channel that is produced, then perhaps it will be the end of the deluxe cable package that has 5 good channels, HBO, 45 fucking shopping networks and a buttload of religious channels. One can only pray (pun intended)
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QUINTIX256
December 29, 2009 at 6:44pm
Although, if I recall, Viacom (the people who sued google over youtube clips of Spondgebob) was much more obnoxious about it. What was the result of that?
You can have your recession. I'm not participating.
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dracx619
December 29, 2009 at 5:52pm
well thats funny. i work at a local fox station and our cable system is time warner. we use it to monitor our programs and news casts while we work. guess we wont be able to check our work live anymore. perfect!
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Carlidan
December 29, 2009 at 5:23pm
Hey what happen to being "Fox and friends"? Those ads that fox runs are so manipulative. They don't tell you why Time Warner has stop showing the stations. Now we know. Thank you. :)
“Animals, whom we have made our slaves, we do not like to consider our equal.”
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nekollx
December 29, 2009 at 5:14pm
What about other carriers, ATT, Charter, CoX, et all?
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Five teenagers, one alien ghost, a robot, and the fate of the world.















