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Two giants in the telecommunications industry battle publicly over Retransmission Consent. Both Fox and Time Warner Cable have let cooler heads prevail in the war over money to end up being doled out in fees to Fox by extending their negotiations beyond the Dec 31, 2009 deadline.
At issue, the Fox owned broadcast networks carried through the Time Warner Cable pipelines. Under Retransmission Consent broadcasters can choose (Must-Carry), where cable operators agree to hold stations throughout the consent period for free, or work for (Advertising) or (Fee-Based) arrangements to solidify carriage. Obviously, Fox provides chosen the latter with a proposed $1.00 per month charge per Time Warner Cable subscriber.
Maintain in mind that community Fox Affiliates have agreed to keyword phrases as time passes Warner Cable, which is truly significantly lower in compensation than the $1.00 fee proposed by Fox owned stations. Evidently Fox views it's owned stations in bigger markets to always be worth far more than its own partners in smaller DMA'ersus.
A $1.00 per sub fee to Time Warner Cable for Fox broadcast stations would mean millions of other expense added to their bottom lines on a per month basis. Exactly how will the cost be absorbed? Usually, these expenses are passed on customers in increased monthly fees, and with linear programming adjustments swallowing the temps from shoppers, as paying for a lot more than they want, Time Warner Cable really doesn't want to take that inevitable backlash. This is definitely evidenced by Time Warner Cable'utes website asking customers where they should draw the line.
With broadcasting revenues on a carrying on with decline, Retransmission Consent negotiations have grow to be a target for broadcasters like Fox to recoup falling revenues. While content will be worth money, where carry out cable companies draw the line on preventing the rising fees? It would seem to be monetary negotiations should reflect software ratings on a per market basis, i.ourite. American Idol, and NFL Giants Games and local programming? What will be market demand for this kind of type programming?
Sadly, it saga seems to have moved to the population arena with both sections wanting to sway public view. It offers end up getting so public that both Senator David Kerry and FCC Chairman Julian Genachowski have stepped straight into great the situation, which provides to highlight the fight over profits and fees, and shoppers disdain for being caught in the middle. So much for public relations!
Len Grace may be the founder and editor from the Cable Pipeline, a Cable Industry Page focused on highlighting pertinent and relevant issues within the Cable/Telecom arenas. His insights and opinions both inform and enlighten readers on current industry trends including Broadband, Digital Cable, Telecom, VOD, IPTV, Infrastructure, and Business Technique.
He is truly a Cable Industry veteran with over 18 numerous years experience like a Basic Manager with Comcast Corporation, and currently will serve being an Independent Expert/Strategist and Blogger contributing to Light Reading'utes/Cable Digital News, a great internationally syndicated technology news organization. He additionally contributes to BroadbandBreakfast.com, a daily website with definitive and independent news on broadband stimulus funding, wireless internet, and the national broadband strategy underneath the banner Expert View.
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