Cablevision Does Not Want To Pay Fox Content Fees
Weekend baseball accessible on Cablevision Fox channels might get turned off if the two corporations can’t come to an agreement over fees. This is just the latest within the string of disputes over content licensing fees. The two corporations have to come to an agreement by midnight on Friday. Ought to no agreement be reached, all the channels will be turned off. This is one more debate over what, exactly, content is worth.
Cablevision and Fox battling over rates
The basic dispute between Cablevision and Fox is the price Cablevision is willing to pay for the content Fox provides. Every year, Fox TV gets $70 million from Cablevision. This is for 12 channels total. This year, NewsCorp which owns Fox TV has asked for $150 million for the same selection. If Cablevision doesn’t agree to pay that amount, NewsCorp has said it will turn off Fox Television to Cablevision customers.
The Cablevision/Fox argument in arbitration
Arbitration is what Cablevision has called for. This is how the dispute over the cost of content could effortlessly be fixed. Fox doesn’t agree. Fox states that arbitration will never be something it enters into. Fox and Newscorp explained why this can be a bad idea. It would “reward Cablevision for refusing to negotiate fairly.” If the dispute isn’t concluded by Friday at midnight, Cablevision customers will not 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. The programming provided by content creators is the basis of what cable television businesses provide to customers. Licensing the content is the bread and butter of cable business. Content creators can hold content hostage due to this. Only two cable TV providers are available to customers in most places. This is why there is practically a monopoly with the business. Ought to content providers be able to charge whatever they want for their service? Ought to there be more of a price control as it’s a public service to have television as New York representatives are claiming?
Citations
MSNBC
msnbc.msn.com/id/35747720/ns/business-media_biz/
Physorg
physorg.com/news/2010-10-cablevision-fox-dispute-affect-baseball.html
