December 31, 2009
News Corp. Says Deal on Fox Signal Is Unlikely
NY Times


The News Corporation said on Wednesday that it looked doubtful that it
would sign a new distribution contract with Time Warner Cable by
Thursday night, increasing the likelihood that its Fox stations will be
removed from cable lineups in millions of homes.

The News Corporation’s president, Chase Carey, declined an offer by Time
Warner Cable to enter binding arbitration. The companies are fighting
over how much the cable operator should pay Fox stations for the right
to retransmit their shows, sporting events and local newscasts. Fox is
demanding about a dollar for each cable subscriber each month, which
analysts say could set a precedent for broadcasters that want more money
from cable and satellite operators.

The contracts expire at midnight Dec. 31. Fox could then take its signal
off Time Warner Cable systems in New York, Los Angeles, Dallas and other
cities.

Time Warner Cable representatives arrived in Los Angeles early this week
for the Fox talks, which are part of a renewal deal that also will
affect several cable channels, including FX and the Speed Channel.

The companies traded barbs on Wednesday after the cable operator
responded to a letter from Senator John Kerry, Democrat of
Massachusetts, and offered to extend talks into 2010. Hours later, Mr.
Carey said that the News Corporation would not provide an extension
because it had been “trying since the summer to negotiate a fair deal.”

“At this time, it looks like we will not reach an agreement, and our
channels may very well go off the air in Time Warner Cable systems,” Mr.
Carey told employees.

“We deeply regret that millions of Fox customers will be deprived of our
programming, but we need to receive fair compensation from Time Warner
Cable to go forward with them,” he said.