Dispute over fees between Cablevision and Fox

an argument over the cost of content means that Fox’s 12 channels can be turned off on Cablevision. This would take weekend baseball off the air. The two corporations need to come to an agreement by midnight on Friday. Should no agreement be reached, all the channels can be turned off. This is the latest volley in the debate over content pricing. Fox thinks its content is worth more, while Cablevision refuses to pay.

Costs cause an argument among Fox and Cablevision

The price Cablevision is willing to pay for the content that Fox is going to be providing is where the Cablevision and Fox dispute begins. Cablevision, under the current contract, pays Fox TV $70 million per year for 12 channels. NewsCorp, owner of Fox Television, is asking for $150 million for those same channels this year. Fox Television won’t be available to Cablevision customers if the amount isn’t paid. That is what NewsCorp promises.

Arbitration used with the Fox/Cablevision argument

Arbitration is what Cablevision has called for. This is how the dispute over the cost of content could very easily be fixed. Fox has said that they absolutely won’t enter arbitration. Fox and Newscorp say this would “reward Cablevision for refusing to negotiate fairly.” Friday at midnight is when the argument needs to be fixed by. If it isn’t fixed, then the 12 channels will no longer be accessible to Cablevision customers.

What is the content worth?

The real question behind the Cablevision and Fox dispute is the value of content. The reason why cable television businesses are business is because of the content they provide. They’re supposed to cater to the customer’s wants. Licensing the content is the bread and butter of cable business. Content creators can hold content hostage due to this. There is nearly a monopoly since one two cable television providers are available to customers the majority of the time. Some New York representatives claim that television ought to have a cost control as it’s a public service when others believe providers should have free will to set whichever cost they want. Which is right?

Articles cited

MSNBC

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

Physorg

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