Tuesday, October 19, 2010

Cablevision and Fox in one more TV charge dispute

Weekend baseball available on Cablevision Fox channels might get turned off if the two companies cannot come to an agreement over fees. This is just the latest within the string of disputes over content licensing fees. The two companies have to come to an agreement by midnight on Friday. Ought to no agreement be reached, all the channels can be turned off. The amount a business ought to be paying for content is the debate at issue. Post resource – Cablevision and Fox in yet an additional TV fee dispute by Personal Money Store.

Fox and Cablevision can’t agree with costs at all

There had been a simple argument that Fox and Cablevision were arguing about. This argument had been about the price Cablevision is willing to pay for the Fox content. For 12 channels, Cablevision has to pay Fox TV $70 million every year. NewsCorp, owner of Fox TV, is asking for $150 million for those same channels this year. NewsCorp claims that without that amount getting paid, Cablevision customers will lose all Fox TV.

Argument between Fox and Cablevision brought to arbitration

The price of content causing an argument is something that Cablevision thinks arbitration should fix. Fox has said that they absolutely won’t enter arbitration. Newscorp claims for Fox the point would be to “reward Cablevision for refusing to negotiate fairly.” If the dispute isn’t concluded by Friday at midnight, Cablevision customers won’t be able to look at any of the 12 Fox channels.

The content value question

The argument between Cablevision and Fox comes down to one thing. The content’s worth is in question. Cable television corporations are designed to be giving customers programming content they want. Licensing the content is the bread and butter of cable business. Content creators can hold content hostage because of this. In most areas of the country, you will find only one or two cable television providers available to customers — so it is a near-monopoly on content. Should content providers be able to set any price for content, or is television a public service that, like some New York representatives are claiming, ought to be more carefully price-controlled?

Citations

MSNBC

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

Physorg

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



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