Time Warner Cable and News Corp. are in the middle of a game of "chicken" over TV-programming fees. The folks at News Corp want higher fees paid for their programming, and Time Warner wants to keep costs at a minimum.
And who is being used as a pawn in these negotiations? TV Viewers.
If the fight remains unresolved by New Year's Day (i.e. midnight Dec 31 as the ball at Times Square is dropped), it will threaten millions of cable-TV subscribers with the loss of Fox broadcast programs.
Both Time Warner Cable and News Corp. have taken their case to the public, with a series of newspaper and TV ads from each side, aiming tosway public opinion.
According to The Wall Street Journal, "the crux of tensions is a $1 monthly fee News Corp is seeking for local Fox TV stations it owns from each Time Warner Cable TV household. While several owners of broadcast stations have had some success seeking such fees in recent years, amid declines in ad revenue, the Fox network is seeking a much higher fee."
Time Warner Cable says the additional costs will need to ultimately be passed on to consumers. The News Corp. folks say that claim is "incredibly disingenuous" with a business model that works with or without the fees.
Realistically, the Time Warner people know if they give in to Fox, others will follow. They don't want to open the floodgates for other media companies that own broadcast TV networks.
Time Warner Cable has 13 million pawns TV subscribers.
