Cablevision and Fox in yet another TV charge dispute

Weekend baseball available on Cablevision Fox channels might get turned off if the two companies can’t come to an agreement over costs. This is just the latest in the string of disputes over content licensing fees. At midnight Friday, the current deal between Cablevision and Fox will expire. This is the latest volley within the debate over content pricing. Fox thinks its content is worth more, when Cablevision refuses to pay.

Rates cause a discussion between Fox and Cablevision

There was a simple argument that Fox and Cablevision were arguing about. This argument was about the price Cablevision is willing to pay for the Fox content. Cablevision, under the current contract, pays Fox TV $70 million per year for 12 channels. The very same channels might cost more for Cablevision if Fox TV’s owner, NewsCorp, gets what it wants. It was hoping the same channels would get it $150 million this year. Fox TV will not be accessible to Cablevision customers if the amount is not paid. That is what NewsCorp promises.

The Cablevision/Fox argument in arbitration

Cablevision has tried to call for arbitration within the dispute over the price of content. Fox says arbitration will never be considered. Fox and Newscorp say this would “reward Cablevision for refusing to negotiate fairly.” Friday at midnight is when the dispute needs to be fixed by. If it isn’t fixed, then the 12 channels will no longer be available to Cablevision customers.

The question of content value

The value of the content is in question with the Cablevision and Fox dispute. The programming provided by content creators is the basis of what cable television companies provide to customers. Licensing the content is the bread and butter of cable business. This, however, means that content creators might be able to hold content hostage. In most areas of the country, there are only one or two cable television providers available to customers — so it is a near-monopoly on content. Some New York representatives claim that television ought to have a cost control as it’s a public service when others believe providers should have free will to set whichever cost they want. Which is right?

Citations

MSNBC

msnbc.msn.com/id/35747720/ns/business-media_biz/

Physorg

physorg.com/news/2010-10-cablevision-fox-dispute-affect-baseball.html