Time Warner Subscribers May Lose Fox Network

From DailyTech: Cable providers in America are making big money off subscribers and advertisers. The cable companies also have to pay the networks to be able to rebroadcast the programs they air to their network of subscribers. When it comes time to renegotiate these broadcasting contracts things can get sticky.

Fox and Time Warner Cable are currently in renegotiations for broadcasts rights to Time Warner customers. The negotiations are held up at this time by a battle over how much the broadcast rights to Fox programs are worth to Time Warner.

Reuters reports that Time Warner pays local broadcast companies and other broadcasters in the area of 25 to 50 cents per subscriber. Fox is asking for $1 per subscriber from Time Warner according to a person familiar with the negotiations.

Fox's demands are also seemingly out of line with the demands from their major TV producers as well. CBS CEO Les Moonves has stated that he expects to be paid in the area of 50 cents per subscriber for broadcast rights to CBS programs.

The real bad news for Time Warner subscribers is that if the negotiations fail, they could lose access to popular Fox programs like NFL Football, American Idol, and many more. Fox issued a statement saying, "[There is a] very likely possibility that Time Warner Cable may choose to no longer carry Fox Broadcasting, Fox Cable and Fox regional sports programming."

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