Two giants in the telecommunications industry battle publicly over Retransmission Consent. Both Fox and Time Warner Cable have let cooler heads prevail within their war over money to always be doled out in costs to Fox by extending their negotiations beyond the Dec 31, 2009 deadline.
At issue, the Fox owned broadcast networks carried with the Time Warner Cable pipelines. Under Retransmission Consent broadcasters can choose (Must-Carry), where cable operators agree to transport stations throughout the consent period for free, or work for (Advertising) or (Fee-Based) arrangements to solidify carriage. Obviously, Fox has chosen the latter with a proposed $1.00 per month charge per Time Warner Cable subscriber.
Maintain in mind that local Fox Affiliates have opted for terminology as time passes Warner Cable, which is significantly lower in compensation than the $1.00 fee proposed by Fox owned stations. Evidently Fox opinions their own owned stations in greater markets to end up being worth additional than its online marketers in smaller DMA'ersus.
A $1.00 per sub fee to Time Warner Cable for Fox broadcast stations would mean numerous extra expense added to their bottom level lines on a per month basis. How will the cost always be absorbed? Usually, these fees are passed onto customers in increased monthly costs, and with linear programming options using the temperature through shoppers, as paying for greater than they want, Time Warner Cable doesn't want to take that inevitable backlash. This is definitely evidenced by Time Warner Cable'utes website asking customers where they need to draw the line.
With broadcasting revenues on a carrying on with decline, Retransmission Consent negotiations have end up getting a target for broadcasters like Fox to recoup falling revenues. While content is truly worth money, where perform cable companies draw the line on preventing the rising charges? It would seem monetary negotiations should reflect software ratings on a per market basis, i.elizabeth. American Idol, and NFL Giants Games and neighborhood programming? What is market demand for it type programming?
Sadly, this specific saga provides moved to the general public arena with both sections wanting to sway public thoughts and opinions. It has grow to be so public that both Senator Henry Kerry and FCC Chairman Julian Genachowski have stepped directly into awesome the situation, which provides to highlight the fight over revenue and fees, and buyers disdain for being caught in the midsection. So much for public relations!
Len Grace is the founder and editor in the Cable Pipeline, a Cable Industry Blog 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 Tactic.
He is truly a Cable Industry veteran with over 18 numerous years experience as a Standard Manager with Comcast Corporation, and currently assists as an Independent Advisor/Strategist and Blogger contributing to Light Reading'ersus/Cable Digital News, the internationally syndicated technology news organization. He often contributes to BroadbandBreakfast.com, a daily site with definitive and independent news on broadband stimulus funding, wireless internet, and the national broadband arrange under the banner Expert Opinion.