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Satellite or Cable: Time Warner Tries to Confuse Subs

Via Directsattv.com - Satellite or Cable: Time Warner Tries to Confuse Subscribers
Time Warner Cable has rejected a contract proposal from Sinclair Broadcast Group, as the two sides continue to fight in a heated dispute over retransmission fees. If a deal is not reached by the end of the year, the fallout could lead to a blackout of a number of stations. The proposed deal by Sinclair would increase monthly subscriber bills by roughly ten cents.

According to Sinclair's executive VP and general counsel, the proposed deal is similar to contracts struck with Time Warner's satellite or cable competitors, and that TWC is insisting on a more favorable contract to gain an edge. Faber believes Time Warner is trying to confuse subscribers by making this a greed issue, when in fact Sinclair is simply requesting it receive fair market value. Conversely, Sinclair was able to make far more peaceful negotiations with satellite leader DIRECTV.

In an emailed statement, Time Warner Cable attempted to refute Faber's claims, and implied they hoped to continue with negotiations. Spokesman Alex Dudley stated they present three possible solutions to the impasse, including arbitration. If a deal is not reached by December 31st, Time Warner Cable subscribers will lose numerous stations connected with Sinclair. Subscribers of other satellite or cable companies will not be affected.

Sinclair has been adamant that the ten cent increase is necessary to keep up with rapidly growing costs. They have further highlighted the fact that the price with Time Warner Cable is equal to the contracts sewn with every other major satellite or cable provider over the past 2 years. This guarantee would cover Time Warner Cable's main competitors such as Dish, Charter, Mediacom, and DIRECTV. When the contract expires, Sinclair estimates that Time Warner Cable will lose carriage of 33 TV stations which are viewed by more than 8.5 million subscribers.

This is just the latest retransmission dispute between cable providers and broadcast stations. In addition to Time Warner Cable, Cablevision and Dish have each been entangled in lawsuits, arbitration, and blackouts as a result of arguments over fees. Meanwhile, DIRECTV has had no interruption of service, maintaining a straightforward style of negotiations that has resulted in prosperous deals for both sides. When choosing between satellite or cable , be sure to check out DIRECTV.

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