Ummm... I think FOX may be the bad guy in this one.
FOX wants to charge them $1 per subscriber for their FREE, OVER-THE-AIR local channel. FOX charges other cable companies about 25 cents per subscriber.
FOX is demanding 4 times as much as they have in the past (and who do you think will pay that in increased cable bills?)
I think you’re right. I don’t like losing a major network (and it won’t happen; this “threat” comes around every year and resolves itself), but there isn’t a thing I watch on Fox anyway.
Perhaps, but they’ve got the ratings to back up their demand. The other networks cannot say the same. People don’t need to have cable to get FOX’s local free programming, what Time Warner is being asked to pay for is the right to re-broadcast FOX’s programming via their service.
You’re right that this will probably be used by TWC to up their subscriber fees, or it may decide to push the FOX broadcasts up a notch on their “basic/premium” ladder, however, this is business and that’s the way it goes, frankly — there is no “bad guy” in this.
FOX has worked hard as a network to provide quality programming, and is facing a lot of pressure right now from outside groups, incl. the gov’t. - they have a right to be paid for the programming THEY provide. If they didn’t have numbers to back this up, they wouldn’t be asking for it in the first place.
Folks...pull your heads out...this is the art of negotiation ..don’t get your panties in a wad one way of the other. It’s called capitalism...a dying art in America, unfortunately.
FOX wants to charge them $1 per subscriber for their FREE, OVER-THE-AIR local channel. FOX charges other cable companies about 25 cents per subscriber.
How much do ABC, CBS and NBC charge Time-Warner per subscriber? That's the only valid comparison. And I'd bet it is at least $1 per subscriber.
For many years, Fox has lived with a lower rate of remuneration, because they were in the process of building their audience and expanding distribution.
Fox is now in a position to capitalize on the groundwork they've laid with superior programming that has captured a higher share of audience. They are perfectly within their business rights to demand compensation equivalent to -- if not greater than -- the other networks.
In the end, Times-Warner dare not drop any of the Fox programming.