Time Warner, Fox Dispute Ends With Higher TV Prices
As if you expected any other outcome...
So as you might know if you're a Time Warner Cable user, News Corporation and Time Warner Cable settled their very public and very ugly retransmission fee dispute
on New Year's Day. After bombarding their customers with an ad campaign
urging them to support the company's effort to "get tough" against high rates by broadcasters, Time Warner Cable agreed to -- pay higher rates for broadcasters, including a new per subscriber fee for the Fox network (Fox wanted $1 per, CBS is rumored to have gotten fifty cents per subscriber
, we'll let you guess what Time Warner Cable agreed to). As the New York Times
notes, Time Warner Cable is now rewarding customers with higher prices in the new year, just like DirecTV, Verizon, and everyone else
. If there's two things to be learned by News Corp. and Time Warner Cable's feud, it's that consumers always wind up holding the short straw under the current pricing model, and that the inevitable Internet video revolution can't come soon enough.
149 comments .. click to read
TWC shouldn't pay a penny
Fox broadcasts network programming OTA for free, paid by ad revenues. They should be paying TWC to reach those additional customers instead of double dipping; charging TWC PLUS getting the additional ad revenues as Fox brags about their big numbers. Fox claims that TWC "takes" the programming and resells it, omitting that TWC subs watch those frakkin' ads too all to Fox's benefit.
Fox broadcast stations only exist because the government permits them to use the public spectrum and some strings should come attached to that spectrum including free rebroadcast rights so long as whoever is rebroadcasting doesn't change Fox advertising or insert additional ads.
The cable industry should collectively bargain these rates instead of programmers isolating and picking off these cable outfits with endless price increases and channel extortion. Then if Fox or Disney wants to fight, let them lose their channel off EVERY cable system. Then watch their advertising quickly evaporate.