Deadline Nears For Time Warner Cable And News Corp

12.31.09 | FL News Team

The clock is ticking as a New Year's Eve midnight deadline puts Time Warner Cable and News Corp. on the hot seat to work out a new deal on a contract. The "Los Angeles Times" reports that there's a growing possibility that millions of Time Warner subscribers could see Fox shows vanish from their television screens. At issue is so-called retransmission consent. Fox wants Time Warner Cable to cough up about a dollar for each subscriber on a monthly basis to carry its local TV stations. Time Warner has offered about 30 cents per subscriber. Under the current pact, Time Warner pays nothing.

 Both companies could be negatively impacted by the unresolved dispute. The ratings and advertising revenue for Fox are likely to fall without Time Warner Cable carrying its stations. Time Warner Cable may experience subscriber fallout in the form of threats to disconnect and switch to satellite companies. In the past, negotiations over retransmission consent had broadcasters seeking additional channel space on cable systems to launch new networks in lieu of fees. However, with TV ad revenue drying up, broadcasters are seeking new streams of revenue and want cable and satellite operators to supply it.