By Matthew Rocco
Talks between Cablevision Systems Corporation and Fox’s parent company, the News Corporation, remain stagnant as the two companies have yet to reach an agreement on a new contract. News Corp. pulled its Fox programming after their latest contract with Cablevision expired at midnight the morning of October 16.
“No material progress was made and we remain far apart,” a News Corp. statement read. The company declined to comment, and deferred to a prerecorded phone message.
Cablevision, which serves over three million subscribers in the tri-state area, has stood by its claim that News Corp. wants $150 million for Fox programming. According to the cable company, it currently pays News Corp. $70 million for Fox 5, My9, Fox Business Network and NatGeo Wild. News Corp. denies that it is seeking $150 million.
News Corp. remains opposed to arbitration despite calls from legislators to come to an agreement. Cablevision made a timely announcement Tuesday that it has put arbitration on the table during talks with the DISH Network over two stations, MSG and MSG+. Cablevision and Madison Square Garden, Inc. are both owned by the Dolan family.
“By now it should be clear even to News Corp. that binding arbitration is the fastest and fairest way to return Fox programming to our customers,” Cablevision said in a statement. Cablevision did not return a phone call seeking comment.
“This is the first time MSG has ever suggested being open to binding arbitration with DISH Network or anyone else,” News Corp. said in a separate statement. “This position is totally inconsistent with their own filings to the FCC and inconsistent with their own actions in denying hundreds of thousands of viewers access to Knicks, Rangers, Nets and Devils games.”
During this standoff, both News Corp. and Cablevision have placed advertisements in newspapers. In an effort to put the cable company on the ropes, News Corp. is urging Cablevision subscribers to switch to alternative pay-television companies.
The Federal Communications Commission has maintained the perspective of a third party, as opposed to getting directing involved in the negotiation process.
“I am deeply troubled that Cablevision and Fox are spending more time attacking each other through ads and lobbyists than sitting down at the negotiating table,” FCC chairman Julius Genachowski said in a statement. “I have called the CEOs of both companies and reiterated the importance of reaching a deal, as many companies have done before. We will continue to scrutinize their actions very closely.”
The FCC did, however, become involved in a passive-aggressive way on Wednesday when the official Twitter account for the commission provided updates to the third game of baseball’s National League Championship series between the Philadelphia Phillies and the San Francisco Giants. The entire series was broadcast on Fox, which will also carry the World Series starting this week.
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