Time Warner , Fox/News Corp in eleventh-hour battle
The battle that AIM Group reported in November still rages on between Time Warner and several network providers who are raising their fees, and in the case of News Corp., parent of Fox, creating new fees where none existed before. The deadline is Dec. 31 for Time Warner to sign on the dotted line, reported CNN Money. Failure to do so would lose TW customers access to such TV shows as American Idol and The Simpsons. Other providers whose rate increases cause TW to hesitate its signing include Scripps Networks and The Weather Channel.
News Corp. has tacked on an entirely unprecedented $1-per-subscriber fee to Time Warner for airing its stations, a practice that has traditionally been reserved for access to cable networks. ABC, CBS, NBC and Fos have always been available to Time Warner and other cable companies at no charge.
Time Warner created RollOverGetTough.com site to publicly express its displeasure over the cost increases. Fox responded with its own KeepFoxOn.com.
Both argue financial necessity as the reason behind their stand. The issue would affect 13 million viewers, though News Corp. does not own all Fox affiliates.
Program prices to 300% more, Time Warner fights back
Time Warner Cable Inc., the second-largest cable operator in the U.S., just announced that it has launched a multi-faceted campaign, on behalf of its customers, targeting unfair price demands by programmers.
Increasingly, when contracts come up for renewal, said Time Warner, programmers – those who operate broadcast and cable networks and create television content -are asking for incredible price hikes for their content, at times as much as 300 percent increases. Programmers make these demands of cable companies and other video distributors, but video distributors are the ones who have to pass those costs along to customers and take the blame.
“We have some tough choices to make, and we want to make sure we’re doing what’s best for our customers, so we’re asking them to help us decide what to do,” said Time Warner Cable Chair, President and CEO Glenn Britt, in the announcement. “We want them to know why we fight so hard on these issues — if we Roll Over, they pay the price. If we Get Tough, they may lose their favorite shows until we reach a reasonable agreement. We’re not trying to attack programmers, but we need to find a better way to resolve these issues. Together, with our customers, we just might be able to make a difference in what America pays for its favorite entertainment.”
Time Warner Cable launched a Roll Over Get Tough Web site so customers could directly give their feedback. To ensure that customers know about this initiative, Time Warner Cable will also work to reach all of its customers via newspaper, online and TV advertising.
