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News Corp.'s Chase Carey expects Fox signals to be pulled from Time Warner Cable

In an internal memo to staff, News Corp. President and Chief Operating Officer Chase Carey said he did  not think an agreement would be reached with Time Warner Cable regarding carrying Fox's local TV stations and several cable networks before the deadline of the current deal expired at midnight Thursday.

CHASECAREY That means the signals for local Fox TV stations in cities where Time Warner Cable is the distributor will go dark. Other channels that Fox owns that are part of this spat include FX and some regional sports channels including Prime Ticket and Fox Sports West in Los Angeles.

The two sides have been fighting for several months over the fee Fox wants from Time Warner Cable to keep carrying its local TV stations, including KTTV Los Angeles and WNYW New York. Fox has sought $1 per subscriber, per month, and Time Warner Cable so far has countered with about 30 cents per subscriber.

Carey wrote:

"At this time, it looks like we will not reach an agreement and our channels may very well go off the air in Time Warner Cable systems at midnight tomorrow, December 31. We deeply regret that millions of Fox customers will be deprived of our programming, but we need to receive fair compensation from Time Warner Cable to go forward with them. Some may ask why Fox isn’t providing an extension while negotiations continue – the fact is that we’ve been trying since the summer to negotiate a fair deal and that further extensions simply extend the period of time that Time Warner profits from our marquee programming without fairly compensating Fox for it."

Carey went on to say that Fox's "requested compensation is about equal to what Time Warner Cable pays TNT, a network with a fraction of the ratings and original programming of Fox, or about a quarter of what they pay ESPN, a network we again dwarf in ratings. Time Warner Cable will claim they cannot afford the rates we are requesting and try to blame us for rate increases to their customers."

Of course, Carey is a tough negotiator, and this is just the latest in a series of back-and-forth jabs between the two companies. Late Tuesday, Time Warner Cable Chief Executive Glenn Britt told Sen. John Kerry (D-Mass.), who previously asked both sides to settle their differences so viewers wouldn't lose their favorite shows, that he was willing to extend the current deal and enter binding arbitration. Neither of those options appeal to Fox.

-- Joe Flint

Related posts:

Disney offers support to Fox in battle with Time Warner Cable

Carmen Electra caught up in cable feud

John Kerry weighs in on Fox-Time Warner Cable spat

Broadcasters' tough talk with cable is not without risks

News Corp.'s Chase Carey ready for battle with Time Warner Cable 

Time Warner Cable takes aim at programmers

Photo: Chase Carey. Credit: News Corp.


Comments () | Archives (71)

Why in the world does Fox need an additional $1 per month per customer? That is so much money! They are making money hand over fist, there is no reason for such a large increase. It isn't as if this year produced some sort of technical obstacle that created a huge jump in operating expenses. I think Fox will come out looking very bad in all of this.

I commented earlier but I was wrong - it was Viacom that pulled these tactics last year. Uhm...Sort of makes me not want to watch anything anymore--cut all of em' off!

Well, y'all ain't watching Steve or Jillian after tomorrow. No Kings or Ducks or even Lakers..that's a dogonne shame.

Both of these companies are total losers looking to screw their customers at every turn.

Having been a Time Warner subscriber for years, I can't muster any sympathy for them in any situation under any circumstances. They refuse to give consumers what consumers want, which is an a la carte menu. Why do I have to pay for 200 channels when I only watch about 15?

I'd be happy to pay more for Fox if I didn't have to pay for the scores of channels I never watch.

Now, don't get me started on Murdoch...

What I don't understand is how Fox is allowed to pull its normal commercial programs (KTTV for example) out since they are public stations that are regulated by the FCC. Shouldn't the FCC step in and mandate that Fox has no other recourse but to continue its transmission of the Free/Public stations. If Fox balks at that solution then the FCC should pull their licence since they are providing no public benefit. Also the public stations carry the football games that are also on the free portion of their broadcast.

Now you know why cabel TV has some serrious issues, specifically when it involves Bowl Games, Super Bowl, World Series, NBA Playoff games and other programs that were free in the past on commercial TV. Disputes like this are outright Monopolistic moves by large media conglomerates. Congreass needs to put into place some laws to ensure that specific traditions and shows are ALWAYS made availible to the general public with out these types of problem.

Fox like all Cable providers want the best of both worlds, where they want the public stations and cable stations operate under the same rules, with no consideration for the viewing public.

I hope Time Warner wins out, if not, everyone is seeing a rate hike in cable fees, even those who aren't using Time Warner now. If Time Warner swallows the increase, they will pass it on to their customer at one point or another. Once that happens, Fox will then say this is the fee at Time Warner and Comcast, Dish, everyone else gets the same fee…the precedent will be set. And then NBC, CBS and every other station will do the exact same thing.

As a consumer, you have to be on Time Warner's Side…being on Fox's side is saying I agree that Fox deserves more money.

So don't be fooled by the Fox ads. This is all about Rupert Murdoch making more money at OUR expense, as prior to this Fox 11 was free for cable and so was KCOP-13. If Fox gets its way, these will never be free again and everyone who watches TV, regardless of the source, will pay more.

In this era of too many medicore television channels to choose from, may I suggest a wise alternative? Try listening to classical music from KUSC instead, or read or do both. Your intellect will be better served.

-Timothy Miller
Lakewood, CA

I have not had cable for over 8 months and it's GREAT!!! I hear all of these posters complaining but not me. I will still be able to see 24 and any other programming I wish. TWC is the ONLY cable service in L.A. since Adelphia went under. So I am going to stick with local TV for a while since I know this will not be the only power struggle to play out.

It's amazing to me how many of you Westsiders can't even read well enough comprehend a simple article. Fox News is not affected by this squabble.

The comments are rather humerous.. why is everyone blaming Fox? Oh, I am sure all of you who are would quite willingly get paid less then you are worth... you don't need to be paid the minimum wage, here, take 75% less than minimum wage... not happy? fine you dont have a job... That is exactly what the situation is. Very happy I have options other then TWC...

Screw them both they are both getting rich and cry for everything! all they want to do is pass the cost to their consumers. And yet no one does anything or say anything!

It's another way to get more money out of you to give GOP campaign fund to get the Dems out of office. Put in mind most of their programs hate the Democrats.

There seems to be a lot of anti-Fox sentiment here. Instead of making snide remarks, why don't we think about their point of view? Fox has developed some of the best and most popular programming in the last 20+ years. If you owned Fox, and felt you weren't being paid as much as you could get for your services, wouldn't you negotiate to get more?

Fox still needs a distribution channel to sell its advertising. Perhaps TWC should charge for access to its viewer base.

I couldn't care less about fox shows but Prime Ticket? I'm switching!

I couldn't care less about fox shows but Prime Ticket? I'm switching!

Now people can try their dtv boxes and see how lousy the signals are for Fox in LA when they get over the air tv. At least you won't loose Fox, but fixing that antenna is not going to be for pretty.

Good riddance to FOX. Murderok wrecked the Dodgers. FUX shows are mostly tripe. The sports can be viewed using other media now, and it will be nice not to have to hit the remote again quickly to skip past the corporate mind control spewing the Redstateneckwaahoonutjob-party-line-drivel they dare call news. ESPN sports coverage is better, too, and even if it's Disney owned and supposedly supporting FOX, then we could make some progress in the skewed values this country has by cutting back on the absurd amount of money funneled into sports these days.

I'm tired of rate increases and Murdock all together. I'll miss the Lakers but in the end someone will step in at a reasonable price and provide my Lakers and Trojans.

See ya FIX News?

I have no problem if Fox goes dark. I'll use the time to read a good book. The problem for Fox is that once people get out of the habit of watching their shows they may not resume. I know I won't.

Other than losing Lakers home games (FoxSportsWest), I could care less. There's always ESPN's game tracker and what we receive of radio here in San Diego. Most of us on Time Warner in SD do without Lakers road games not having access to KCAL-9, so we'll just track all games like we used to in the early days (radio) or in the new age (internet) . . . Besides, the games that count only come in late April and we have ESPN, TNT and ABC for those.

Fox off of the air? Where do I sign up for TWC!

Fox just turned down arbitration and the FCC extended the date to March 1 for negotiations.

We are being manipulated by two oligarchs, just for the show of it.
Wait til the Hulu controversy starts.


Wish I could get Time Warner...then I could just lose all the Fox channels without having to block them on the Tivo, as they are now. I miss the Simpsons, but the old ones showing in syndication are better anyway. Murdoch is an interesting character, he seems to think that he can bully the public into paying for his increasingly offensive product(s), rather than broadcasting something that people actually want to see (or read). Please Rupert -- put your online content behind a paywall, cut ties with Time Warner...maybe you could develop some issues with Cox San Diego as well?

I have a work laptop and a personal laptop with HDMI. I can keep paying for TWC cable access and watch Internet-streamed TV or DVDs on my 42" flat screen while I work. I don't need regular (or pay) cable TV. (Why didn't I think of this sooner!?!?)

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