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Oct 24th

FCC wants proof Cablevision, News Corp. negotiating

BY LINDA MOSS
NEWJERSEYNEWSROOM.COM

In an unusual act, the Federal Communications Commission Friday ordered warring Cablevision and News Corp. to prove whether they are fulfilling their statutory duty to negotiate "in good faith."

Hanging in the balance is whether or not Cablevision customers, which include more than 900,000 in New Jersey, will be able to watch the Fox broadcast of the World Series on their own TV sets.

The FCC wants an explanation by the end of the business day Monday of what has happened so far in talks between the cable company and the broadcaster, whose contract dispute has knocked WNYW and WWOR in New York and WTXF in Philadelphia off Cablevision's lineup, affecting 3 million customers overall in New Jersey, New York and Connecticut.

"In particular, we request that you describe with specificity what has transpired since you initially began your negotiations, and detail the efforts your company is making to end the current impasse," FCC Media Bureau chief Bill Lake said in the letter. "If you are aware of any conduct by the other side that you believe violates the good faith requirement, please so indicate and provide supporting evidence."

The letter was sent to News Corp. president Chase Carey and Cablevision CEO James Dolan.

"We welcome the FCC's intervention," said Charles Schueler, Cablevision's executive vice president of communications. "Whether through FCC action, binding arbitration or any other means, the time has come for News Corp to end the Fox blackout of 3 million Cablevision households."

Cablevision and Fox are battling over how much the cable company should pay to carry the broadcaster's three stations. Under a law called retransmission consent, broadcasters can seek cash compensation from distributors who carry their TV stations. News Corp. yanked its stations from Cablevision last Saturday, which is when their old contract expired.

RELATED:

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Senators Lautenberg and Menendez ask FCC to intervene in Cablevision/News Corp. dispute

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Cablevision's more than 900,000 N.J. customers lose three TV stations as News Corp. yanks them in carriage dispute

"As you know, your contract dispute extends beyond just Fox and Cablevision," Lake wrote in his letter. "Indeed, it affects millions of innocent consumers who expect to watch their preferred broadcast programming without interruption. We urge you to place the interests of these consumers first and conclude your negotiations promptly."

The missive noted that Congress intended for retransmission consent negotiations to be "conducted in an atmosphere of honesty, purpose and clarity of process."

The FCC wants Cablevision and News Corp. "to describe to us how your company is satisfying this important statutory obligation in the context of your retransmission consent negotiations."

News Corp. Friday warned Cablevision's customers to switch to another TV provider because the odds are good that they won't be seeing the World Series on a Fox TV station.

"For the past eight days Cablevision has deprived their subscribers of the National League Championship Series, possibly two weekends of NFL on Fox, and a full week of Fox's primetime shows," Fox said.

"Unfortunately, it's becoming clear that Cablevision believes Fox has very limited value to their customers," Fox went on. "We urge those Cablevision subscribers who want to see the World Series (beginning Oct. 27) to switch providers or purchase an over the air antenna now."

Cablevision's subscribers could change their TV service and sign up for Verizon FiOS, if it is available in their area, or for satellite service such as DirecTV or Dish Network.

Cablevision and a number of New Jersey, New York and national politicians — as well as several FCC members — have called for binding arbitration to settle nearly weeklong stalemate between the cable company and Fox.

News Corp. Friday also issued a statement saying that according to Cablevision customer service representatives, the company is offering subscribers who call up to cancel their subscriptions a $20 a month credit for up to two years — a savings of nearly $500.

"It seems unfair that only customers who call, wait on hold for up to 30 minutes and threaten to leave are receiving this rebate," News Corp. said.

"After all, these customers have lost the National League Championship Series, the NFL on Fox, and a full week of Fox's primetime shows due to Cablevision's refusal to negotiate. In the interest of fairness to consumers, Cablevision should listen to the calls of policymakers and their own customers and ensure that same rebate is applied to every Cablevision household.

 

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