December 30th, 2009 
joel UPDATED (Sat. January 2nd, 6:30 AM ET): TWC’s & Fox joint news release issued Friday night, Jan. 1:
The Fox Networks Group and Time Warner Cable announced today that they have agreed in principle to a comprehensive distribution agreement to provide more than 13 million households with programming from Fox Television Stations, Fox Broadcasting (FOX), Fox Cable Networks and Fox’s regional sports networks. The deal also includes carriage agreements for Bright House Networks’ 2 million additional subscribers.
“We’re pleased that, after months of negotiations, we were able to reach a fair agreement with Time Warner Cable — one that recognizes the value of our programming,” said Chase Carey, Deputy Chairman, President and COO, News Corporation.
“We’re happy to have reached a reasonable deal with no disruption in programming for our customers,” said Glenn Britt, Chairman, President and CEO, Time Warner Cable.
Terms of the agreement were not disclosed.
Apparently, Time Warner Cable has money to buy full-color full page newspaper ads, but doesn’t want to pay more for some cable channels owned by FOX/News Corp.
Much as in the continuing debacle with NFL Network, TWC is taking the position of consumer protector in objecting to increased carrying fees. This time it is the entertainment side of FOX, including, in the City of Erie:
- Fuel
- Fox Reality Channel
- Speed Channel
- Fox Soccer Channel
- Fox Sports World Espanol
- FX
Notice that the list does NOT include Fox News Channel or the regional Fox sports channels, which would most likely cause a major uprising. According to the ad on page 8D in Wednesday’s Erie Times-News, these “channels may no longer be available as of January 1, 2010.”
For me, there’s not a channel on that list that I’ll skip a beat about. But for my neighbor the NASCAR fan, or the guy next door who’s an amateur BMXer, this is gonna hurt.
What’s frustrating is these negotiations should be mutually beneficial, but there is a bit of an upper hand on part of FOX. If TWC continues to drop channels, they will eventually lose market share to Direct TV, DISH and in other markets, Verizon’s FIOS. But I won’t shed a tear for a cable company that thoroughly enjoys their exclusive monopoly in the municipalities in and around Erie, and issued a huge double digit rate increase just a couple months ago.
If you want to weigh in on the negotiations, go to TWC’s RollOverOrGetTough.com.
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Deep Background for January 10-16, 2010
I’m increasingly convinced that there is a new “normal” in the Erie and national media construct.
Before you say, “Duh!”, let me say that the old business models of selling ads to show in front of massive audiences is not dead yet, but it’s increasingly impotent. That’s why, for example, you have these yearly knife fights between cable providers and content producers/networks. The networks like Fox have to generate additional revenue streams to pay for the high cost of production.
Meanwhile in the radio and newspaper world, the high amounts of debt on most media balance sheets (excepting the Times Publishing Co.) forces wholesale reductions in personnel and expenses just to pay the mortgage.
On the positive side, the new normal means tons of opportunity for entrepreneurial approaches in the new media space. You no longer have to wait for an FCC license or buy a million dollar press…you can just write an app.
Are we willing to embrace this new normal? Let’s pay homage to the past and wistfully “remember when.” But let’s also look ahead at all of the opportunities this proliferation of media provides.
I want to hear from you! Leave a comment, e-mail me, or tweet @pressandtower.
Embrace the chaos!