FOX & TWC dispute: No FOX programs in 2010?

[Skaggs]

Fox Looks To 'Keep On' Time Warner Cable Systems In Retrans Dispute
News Corp.'s Broadcast, Cable Properties Fire Back Against Op's 'Get Tough'
By Mike Farrell -- Multichannel News, December 18, 2009

In a looming retransmission-consent battle, Time Warner Cable isn't the only one looking to get tough.

In what appears to be a direct rejoinder to Time Warner Cable's "Roll Over or Get Tough," an initiative aimed at educating consumers about rising programming costs, News Corp. has set off its own media blitz for some of its cable networks, as well as Fox Broadcasting properties, running ads on television and in print and creating a Web site (www.keepfoxon.com) to show viewers what they could be missing if a carriage agreement with the No. 2 MSO isn't reached by Dec. 31.

The carriage deals affect about 13 million Time Warner Cable subscribers (3.9 million for the broadcast stations) and include Fox TV stations in New York; Los Angeles; Austin, Texas; Dallas; Detroit; Orlando and Tampa, Fla.

Also in danger of being dropped are Fox cable channels FX, Speed, Fuel TV, Fox Movie Channel, Fox Reality Channel, Fox Soccer Channel and Fox Sports en Espanol, plus nine regional Fox Sports networks (FS Arizona, Florida, Houston, Midwest, Southwest, West, Prime Ticket, SportsSouth and Sun Sports.



According to Fox, if a deal is not reached Time Warner Cable subscribers would miss major sports programming like the National Football League playoffs (including the NFC Wildcard game on Jan. 10; the NFC divisional playoffs on Jan. 16 and 17 and the NFC Championship on Jan. 24), the BCS college football bowl games (including the All State Sugar Bowl Jan. 1, the AT&T Cotton Bowl Jan. 2 and the Fed Ex Orange Bowl on Jan. 5), as well as the season premiers of broadcast staples American Idol (Jan. 12) and 24 (Jan. 18) and fresh installments of medical drama House (Jan. 11).

News Corp. has reportedly been asking for $1 per month per subscriber for its TV stations and has been pressuring affiliate station groups to allow it to conduct negotiations for their retrans deals. Time Warner fired the first salvo in their negotiations with Fox, filing a comment with the Federal Communications Commission earlier this month claiming that Fox "hijacked" its most recent retrans talks with affiliate Sinclair Broadcast Group. According to the FCC comment, which Time Warner Cable filed in support of Mediacom Communications' dispute with Sinclair, Fox threatened that any deal reached with affiliates could be vetoed by the network. Time Warner Cable extended its pact with Sinclair for one year, a term that the cable operator stressed was not the industry standard.

Time Warner Cable spokeswoman Maureen Huff said that negotiations with the broadcaster "are ongoing, but Fox's cost demands are unreasonable and excessive, especially in light of the economic climate."

Fox isn't the only network group that could fall off Time Warner Cable systems by year end - the MSO is in negotiations with Scripps Interactive's Food Network and Great American Country, The Weather Channel and Starz Entertainment services - but it is certainly the largest.

Fox counters that it is asking only for a reasonable for the value it provides to cable operators. According to the www.keepfoxon.com Web site, Fox claims that the amount it is asking for all of its networks is in the same ballpark as what Time Warner Cable pays for one network (ESPN at about $4 per subscriber, per month) and that based on its comparable cost of programming, could charge as much as $4 to $5 per month per subscriber.

"Moreover, Fox attracts more viewers than the five most expensive cable networks combined (ESPN, TNT, USA, ESPN2 and NFL Net)," the programmer stated. "The bottom line is that the Fox stations feature some of the nation's most-watched programming with shows such as 24, American Idol, House, Glee, and The Simpsons, as well as the most compelling sports on television with the NFL, Major League Baseball, and NASCAR. The price being asked for as compensation for all this value is extremely reasonable."

Fox is also urging Time Warner Cable customers to switch to alternate providers like Verizon Communications' FiOS and satellite services DirecTV or Dish Network if an agreement cannot be reached. That threat is not lost on Time Warner, but the MSO added that those other providers could soon find themselves in the same boat.

"Customers can switch, but need to understand that every provider, including satellite and telco companies, faces rising programming costs and potential disputes," Huff said.
In a research note, Pali Research media analyst Richard Greenfield wrote that the dispute has the makings of a "Battle Royale' - in addition to the NFL playoffs and college bowl games, the last week of the NFL season is Jan. 3 and includes two contests with teams inside Time Warner Cable's footprint (New York Giants vs. Minnesota Vikings and Philadelphia Eagles vs. Dallas Cowboys).

And though Time Warner will probably take a subscriber hit in the dispute, the impact may not be that bad, Greenfield wrote. In New York, which is dominated by apartment buildings, satellite service is not always feasible and FiOS service is not available in every area. In addition, the analyst said that News Corp. may not want to attract the extra regulatory scrutiny that may come with a protracted and public retrans battle in major markets.

"Fox has the upper-hand, leverage-wise, but the battle is not as lopsided as it appears at first glance and the risk of regulatory intervention is not in anyone's best interests," Greenfield wrote. He added that he would expect that after some chest-thumping, Time Warner will agree to a 50- to 60-cent fee for the broadcast stations within days after the Fox signals are dropped.

[Skaggs]

NFL fans...get your OTA antenna set up in case FOX comes off TWC.

According to Fox, if a deal is not reached Time Warner Cable subscribers would miss major sports programming like the National Football League playoffs (including the NFC Wildcard game on Jan. 10; the NFC divisional playoffs on Jan. 16 and 17 and the NFC Championship on Jan. 24), the BCS college football bowl games (including the All State Sugar Bowl Jan. 1, the AT&T Cotton Bowl Jan. 2 and the Fed Ex Orange Bowl on Jan. 5), as well as the season premiers of broadcast staples American Idol (Jan. 12) and 24 (Jan. 18) and fresh installments of medical drama House (Jan. 11).

[scott]

This shouldn't affect WXXA. If they don't reach an agreement, we would likely lose the Fox cable networks (FX, Speed, etc) but not our Fox affiliate. News Corp. can only negotiate the carriage agreements for the Fox owned-and-operated stations in major markets. WXXA isn't owned by News Corp. so we shouldn't lose it (unless Time Warner is in a dispute with WXXA's owner, which I'm not aware of).

Notice in the story you posted, it says only about a third of affected Time Warner subscribers would be affected by the loss of the Fox broadcast network.

The carriage deals affect about 13 million Time Warner Cable subscribers (3.9 million for the broadcast stations) and include Fox TV stations in New York; Los Angeles; Austin, Texas; Dallas; Detroit; Orlando and Tampa, Fla.

In fact, entering my ZIP code in the Will I Be Affected? Box on www.keepfoxon.com/fox yields the message that indicates only FX, SPEED, FUEL, Fox Soccer Channel and Fox Sports En Espanol would be dropped. Entering a NYC ZIP code results in those stations, plus the Fox and MyNetworkTV affiliates (both owned by News Corp) being listed as potential drops.

[Skaggs]

Time Warner Cable tells Dallas-area viewers games will be on despite Fox

06:42 AM CST on Wednesday, December 30, 2009
By SHERYL JEAN / The Dallas Morning News

Time Warner Cable says its customers will be able to watch Saturday's Cotton Bowl game, Sunday's Cowboys game and Monday's Fiesta Bowl game with TCU on the local Fox TV station, even though it's still negotiating with Fox owner News Corp. over fees for other channels.

But Fox fired back Tuesday night, describing it as a ploy.

"This is another desperate attempt by Time Warner Cable to retain Fox's marquee programming without providing fair compensation," Fox said in a prepared statement.

Earlier Tuesday, the nation's second-largest cable provider, Time Warner Cable, told the local Fox station, KDFW, that "federal law requires cable companies to carry broadcast stations if the station does not elect a retransmission agreement," said Jon Herrera, a regional vice president with Time Warner Cable.

"We have a 'must-carry' arrangement for KDFW starting Jan. 1," Herrera said. "We're of the opinion that we have a deal with them."

Herrera and spokesman Gary Underwood would not detail the federal communications laws on which they're relying. They said other Fox-owned and operated stations, such as those in Los Angeles and New York, and cable channels would be excluded.


Program issues

Tuesday's developments ratchet up the already contentious negotiations between the media giants over Fox's demand to be paid for its network programs, such as football games and American Idol. Time Warner Cable's North Texas customers could lose local Fox stations and national network broadcasts – KDFW (Channel 4), FX, Fox Atlantic, Fox Reality, Fox Soccer, Fox Sports Southwest, Fox Sports en Español, Fuel and Speed – when the contract expires at midnight Thursday.

Time Warner Cable said it planned to send an e-mail blast to customers Tuesday night and run print and TV advertisements today about its intention to air the football games.

In its statement, Fox disputed Time Warner's interpretation of federal law.

"Time Warner Cable is prohibited [under the U.S. Copyright Act and the Communications Act] to carry KDFW and KDFI after our current retransmission consent agreement expires at midnight on Dec. 31, unless a new agreement is reached," Fox said.

Todd Stansbury, a communications lawyer for Wiley Reinin Washington, D.C., explained that networks must decide every three years whether to grant cable operators the rights to air its programs and must provide written notice by a certain date before the contract expires. If the broadcaster does not do either, the contract defaults to "must-carry" status, meaning the cable operator is required to air the network.

Two other broadcast lawyers who declined to be identified said the contract between Time Warner Cable and Fox could be more complex or contain restrictive terms.

As Thursday's deadline looms, the stakes increase for both sides. The Dallas area ranks as the nation's fifth-largest TV market, with 2.5 million viewers. This year, Fox carried the nation's top two regularly scheduled TV programs (American Idol on two nights) and three (all football games) of the top 10 one-time programs, according to the Nielsen Co.

Time Warner Cable and Fox continue to negotiate, meeting face-to-face in Los Angeles Tuesday.


Stand to gain

Other media players stand to gain customers from the dispute.

Cable rival Dish Network is actively courting them.

On Monday, it began running advertisements in Dallas and dozens of other Time Warner Cable markets for a special deal: $24.99 a month for more than 120 TV channels, free HBO and Showtime for three months and free installation.

Francie Bauer, a Dish spokeswoman in Englewood, Colo., said the company wants Time Warner customers in the Dallas area to know "there's a better option out there that ensures they won't lose their favorite channels."

Already seeing a difference is Bruce Hackfeld, president of DishBeatsCable.com, a Plano-based independent retailer for Dish. His business has more than doubled since Christmas and it's not just because of the typical holiday boost, he said.

"The Time Warner thing couldn't have come at a better time for us, with Christmas and everybody getting their new flat screen TVs," Hackfeld said. "We've got a ton of people concerned about watching the Cowboys game this Sunday. A lot of people are already fed up with cable and ready to make the switch."


'Negotiating ploy'

One of them could be Time Warner Cable customer Mike Sakas of Euless.

"My personal feeling is that the whole thing is a bunch of noise – a negotiating ploy," Sakas said. If Time Warner Cable doesn't run Sunday's Cowboys game, "you can always run down to the sports bar. But if they cut it, I'll probably switch [to another cable provider]."

Staff writer Brendan Case contributed to this report.

[Skaggs]

In an email from Albany TWC at 6:24PM on December 31, 2009:

Dear Valued Customer,

There has been a lot of media coverage this week regarding Time Warner Cable’s current contract negotiations with FOX Broadcasting (News Corporation). Our current agreement expires tonight at Midnight, and while our negotiation team is working hard to keep their programming on our system the following channels may no longer be available as of Jan. 1, 2010: FX, Fuel, Speed Channel, Fox Reality Channel, Fox Soccer Channel, Fox Sports en Espanol. Other FOX channels NOT impacted by these current negotiations are FOX News, FOX Movies, FOX Business and National Geographic.

For Time Warner Cable customers in the Capital Region, please note that there is an agreement in place between Time Warner Cable and WXXA. This station's programming will NOT be affected by the national FOX Broadcasting negotiation, which means you will still be able to enjoy your favorite FOX programming such as this weekend’s College Bowl games, "American Idol," "24" and more. For those networks that may be pulled off our system, we plan to offer appropriate replacement programming for these channels.

So as you and your family get ready to enjoy the weekend, we hope that you look to Time Warner Cable for your entertainment needs. Whether you’re searching through the thousands of movie titles available on our Video on Demand service to surfing over a 100 High Definition programming options, sit back, relax and enjoy!

For updates on the contract negotiations and potential replacement programming, please visit our Web site at www.rolloverorgettough.com or call 877-267-1844. On behalf of Time Warner Cable we hope you have a safe and Happy New Year!

[Skaggs]

Fox, Time Warner Extend Talks in Cable Dispute
By NAT WORDEN, Wall Street Journal, BUSINESS, JANUARY 1, 2010, 2:44 A.M. ET

NEW YORK -- Time Warner Cable Inc. and News Corp. have extended their contentious negotiations over carriage fees for the Fox Broadcasting network into the early morning hours of New Years Day on the east coast, averting any programming disruptions for cable subscribers for the time being.

The two companies are renegotiating a contract that officially ended at midnight and have been unable to reach an agreement on fees that News Corp. is asking to be paid for carriage of its national broadcast network.

The dispute between Time Warner Cable and Fox has the highest profile of a number of similar year-end negotiations that are taking place in the TV industry as networks pressure pay-TV operators for higher subscription fees as advertising revenue slumps amid the economic slowdown and the rise of digital media.

"We're still negotiating and going to give it a little more time," said Fox spokesman Scott Grogin.

A spokeswoman for Time Warner Cable said the company has reached a brief extension with Fox, as well as Scripps Networks Interactive Corp., which is also negotiating with the cable giant over carriage of its cable networks.

Fox has threatened to pull its signal off Time Warner Cable's systems in major markets around the country in a move that could deprive the cable company's subscribers of some of the most popular programming on TV, including college football bowl games.

The broadcast network has asked for fees of $1 per subscriber per month, a rate that would set a new precedent for the broadcast industry as it seeks to shift its business model to include substantial subscription fees from pay-TV operators like its cable network counterparts.

Time Warner Cable has signaled that its willing to pay Fox for its signal, but it's pushing for a lower price.

Federal Communications Commission Chairman Julius Genachowski urged the companies on Thursday to reach temporary agreement and prevent subscribers from losing some Fox channels. Time Warner Cable has said it's willing to extend negotiations or submit to binding arbitration from federal regulators to solve the dispute, but News Corp. rejected those overtures, and the two sides have traded barbs publicly over the matter.

Separately, Scripps deauthorized carriage of the Food Network and HGTV from Cablevision Systems Corp. as the two sides were unable to reach an agreement in a similar dispute.

"We wish Scripps well and have no expectation of carrying their programming again, given the dramatic changes in their approach to working with distributors to reach television viewers," said Cablevision in a statement

Scripps said in a statement that Cablevision is not properly compensating it for the networks, and it's launching a publicity campaign aimed at getting consumers to complain to Cablevision for not carrying them.

"The distribution rates Cablevision pays for Food and HGTV are among the lowest in the industry," said Scripps Chief Executive Kenneth Lowe.

Sinclair Broadcasting Group Inc. and Mediacom Communications announced they had agreed to an eight-day extension to their current contract, which also expires at midnight local time.

Lawmakers and the FCC urged the companies to reach at least a temporary agreement so that Mediacom's cable customers in Iowa and elsewhere would still be able to watch college football bowl games, most notably the Jan. 5 Orange Bowl between the University of Iowa and Georgia Institute of Technology.

[adam]

It's over.

Fox Networks Group and Time Warner Cable Strike Comprehensive Deal to Distribute Fox Broadcast Stations, National Cable and Regional Sports Networks


2010-01-02 01:25:40 -

The Fox Networks Group and Time Warner Cable announced today that they have agreed in principle to a comprehensive distribution agreement to provide more than 13 million households with programming from Fox Television Stations, Fox Broadcasting (FOX), Fox Cable Networks and Fox’s regional sports networks. The deal also includes carriage agreements for Bright House Networks’ 2 million additional subscribers.

"We're pleased that, after months of negotiations, we were able to reach a fair agreement with Time Warner Cable -- one that recognizes the value of our programming,” said Chase Carey, Deputy Chairman, President and COO, News Corporation.

“We’re happy to have reached a reasonable deal with no disruption in programming for our customers,” said Glenn Britt, Chairman, President and CEO, Time Warner Cable.

Terms of the agreement were not disclosed.

[Skaggs]

Time Warner, Fox Reach Deal, Scripps Talks Ongoing
By Chloe Albanesius, PC Magazine, January 1, 2010

Time Warner Cable and Fox have reached an agreement that will keep the network's channels on the cable network.

The deal covers Fox television stations, Fox Broadcasting (Fox), Fox Cable Networks, and Fox's regional sports programming. It also includes Bright House Networks and its 2 million cable subscribers. Exact terms were not disclosed.

"We're pleased that, after months of negotiations, we were able to reach a fair agreement with Time Warner Cable -- one that recognizes the value of our programming," said Chase Carey, deputy chairman, president and COO of News Corporation, which owns Fox.

"We're happy to have reached a reasonable deal with no disruption in programming for our customers," said Glenn Britt, chairman, president and CEO of Time Warner Cable.

The deal means that Time Warner Cable customers do not have to worry about losing Fox channels – including football games, the upcoming season of "American Idol," or the latest episode of "Glee."

At issue were the licensing fees that Time Warner paid to Fox in order to broadcast its programming. Fox wanted more money, but Time Warner said that Fox's initial demands amounted to a 300 percent increase.

Both companies launched Web sites – Time Warner with "Roll Over and Get Tough" and Fox with www.keepfoxon.com – to plead their cases.

The contract between Time Warner and Fox was set to expire at midnight on New Year's Eve. Shortly after midnight, however, Time Warner announced that the two sides had agreed to extend their negotiations, and a deal was announced Friday around 7pm Eastern time.

Time Warner continues to negotiate a contract with Scripps Interactive Network, which owns Food Network, HGTV, and Great American Country (GAC).

"We're still negotiating with Scripps, but there should be no change in customers' ability to see their programming," a Time Warner spokesman said in an e-mail.

Scripps said it was "very encouraged by the Fox announcement" and that "talks continue" with Time Warner Cable.

Cablevision customers were not as lucky. A similar licensing deal between Cablevision and Scripps was also set to expire at midnight last night. The two sides were unable to reach a deal, however, and Cablevision customers in the New York-New Jersey area woke up to TVs without Food Network or HGTV.

"I think it will be a while before there is an agreement with Cablevision," according to a Scripps spokesperson. "Despite our attempts since last May, Cablevision never engaged in meaningful discussions with us to continue carriage of our networks."

A hotline set up by Scripps has received 120,000 customer calls since midnight, according to Scripps.

"The rates we are seeking represent a very modest increase when you consider that Food Network and HGTV are among the top networks in all of cable," John Lansing, executive vice president of Scripps Networks Interactive, said in a statement.

Cablevision said it has "made a number of fair and reasonable proposals that would allow us to continue carrying Food Network and HGTV. All of our proposals have been rejected by Scripps."

Sen. John Kerry, who penned letters to the companies last week urging them to reach a deal, applauded the Fox-Time Warner announcement.

"Both the broadcasting business and the cable business are expensive enterprises and good faith negotiations should result in mutually acceptable terms to both the seller and the buyer without final consumers being put in the crosshairs. I am glad that despite some bumps in the road, that was achieved in this instance," Kerry said in a statement. "I will reach out to both parties, the FCC, and consumer advocates to assess lessons learned from this dispute and what, if any, changes to law are necessary. I again extend my appreciation for a positive outcome to the parties and the efforts that the FCC exerted to bring them together."

"Fox and Time Warner have granted a New Year's resolution of millions of viewers, and I congratulate them," FCC chairman Julius Genachowski said in a statement.

He urged other companies locked in licensing deals – including Sinclair Broadcasting Group and cable company Mediacom – to follow Fox and Time Warner's lead.

"The governing statute contemplates that retransmission terms should be and will be resolved by agreement between private companies, and broadcast and cable companies must accept shared responsibility for any failure to reach a timely deal," Genachowski said.