RETRANS WARS

TWC To Replace Sinclair Signals If Talks Fail

Time Warner Cable says it is continuing to negotiate a new retrans deal, but if talks are unsuccessful by the Dec. 31 deadline and Sinclair pulls its stations, the cable operator will offer programming from the Big 4 networks.

Time Warner Cable announced Thursday evening that it was still hoping to reach a long-term agreement with Sinclair Broadcasting. However, it said that “if Sinclair refuses Time Warner Cable’s offers and requires the company to cease carrying its signals, Time Warner Cable will continue to provide all available Big 4 network programming to its customers.”

TWC’s agreement with Sinclair expires at 11:59 p.m. Dec. 31 and Sinclair is threatening to take its stations off the air if an agreement with the cable operator on retransmission consent fees isn’t reached.

“We will provide all available Big 4 network programming in the event that Sinclair takes away its signals,” said Rob Marcus, president-COO of Time Warner Cable. “We want our customers to remember that we’re fighting hard to contain the rising costs of broadcast programming. We are also still working to reach a long-term agreement with Sinclair before our current contract ends tomorrow night, and in fact discussions between the Time Warner Cable programming team and Sinclair have taken place as recently as this morning and are ongoing.”

TWC does say how it would make the network programming available in its latest release, but in a prior announcement it said that it has the rights to bypass local Fox affiliates and air Fox programming under a provision of its retrans contract with Fox. And in markets in upstate New York and Vermont earlier this month, it simply imported affiliate signals from adjacent markets when retrans negotiatins with local affiliates collapse.

In the prepared statement, Marcus also said that Sinclair “has not missed a chance to obfuscate or misrepresent the current state of negotiations. We have never terminated negotiations, and we don’t plan to do so, even if Sinclair pulls the plug tomorrow night. We hope this sets the record straight.”

During negotiations, TWC said it has “offered several significant and innovative approaches to reach an agreement with Sinclair” including:

BRAND CONNECTIONS

  • “Offering a deal on terms that are as favorable to Sinclair as deals Time Warner Cable has negotiated with other station owners.
  • “Willingness to agree to arbitration for the Big 4 networks (ABC, NBC, CBS and Fox) carried by Sinclair, and revert its MyNetworkTV and CW networks to must-carry status.
  • “Willingness to offer Sinclair stations a la carte, with Sinclair naming the price and keeping all of the money.”

Sinclair, TWC said, “has summarily rejected every offer and has repeatedly claimed to ‘terminate’ negotiations over the past three months. Time Warner Cable remains hard at work on additional proposals and is exploring creative options to resolve this dispute before the current contract expires.”

In addition, the cable operator added, “the number of Time Warner Cable customers that would be affected if Sinclair pulls its signals has been inaccurately portrayed.  Time Warner Cable has approximately 4 million customers who receive local broadcast stations owned by Sinclair Broadcasting.”


Comments (13)

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Gregg Palermo says:

December 31, 2010 at 9:34 am

Hmm, which one is David and which one is Goliath? I always root for David.

jeff lee says:

December 31, 2010 at 9:44 am

“it simply imported affiliate signals from adjacent markets when retrans negotiatins with local affiliates collapse.”
Better check with Congress…..that’s illegal.

    Kathryn Miller says:

    December 31, 2010 at 1:53 pm

    you are incorrect. Ever hear of “significantly viewed signal” status? Ever hear of “foreign market” copyright payments?

jeff lee says:

December 31, 2010 at 10:22 am

I have an evil plan………..
Since I already have TWC (and I pay for the channels I receive) I plan to decode all of their channels and then add them to my own cable system and distribute those signals to my neighbors for a price. Sounds fair to me.

jeff lee says:

December 31, 2010 at 10:24 am

If a broadcaster has TWC in their facility perhaps they should take ESPN and offer it over the air for free?

jeff lee says:

December 31, 2010 at 10:26 am

Cable is still a monopoly and needs to be addressed as such. (DirectTV, Dish, etc….. are other options, they are not a cable system).

Stephen Henry says:

December 31, 2010 at 11:56 am

If this were the old days, neigboring stations would JUMP at the chance of airing outside of their market! it would mean MORE VIEWERS FOR THEM!!! Oh, how retrans and revenue have destroyed television.

    Kathryn Miller says:

    December 31, 2010 at 1:55 pm

    what makes you think that the “old days” aren’t here anymore? The same laws and rules are still in effect … adding must carry/retrans consent didn’t change any old law or regulation then in force.

Teri Green says:

December 31, 2010 at 12:15 pm

Actually out of market signals don’t mean anything in terms of revenue and more viewers. Nielsen ONLY counts the people IN A STATION’S DMA. Nielsen defines the DMA not the FCC. The FCC uses Nielsen’s DMA’s because it’s convenient, but DMAs ae products and owned by Nielsen. So let’s say a Chicago station can be received in South Bend, Indiana. Let’s say 10,000 in South Bend watch this Chicago TV station. Those viewers are never counted by Nielsen anyway. So the ratings don’t go up for that Chicago TV station. And the ratings Nielsen provides are what sets the ad revenue rates. This is why out of market stations don’t care if they are carried outside their home DMA. It doesn’t matter ’cause it doesn’t count for them in their Nielsen ratings. It doesn’t matter how many extra viewers a cable company or dish provides. It doesn’t matter how many viewers can get the signal OTA if all of those viewers are out of the DMA set by Nielsen, they won’t be counted anyway

    Kathryn Miller says:

    December 31, 2010 at 1:57 pm

    actually, doesn’t the FCC still use ADI? Don’t they still use ADIs for determining “significantly viewed signal” status? Don’t stations with significantly viewed status in a market have the ability to be carried by cable systems in that market without paying “foreign” (out of market) signal copyright fees?

    Michael Castengera says:

    December 31, 2010 at 2:30 pm

    No – several years ago (but years too late) they switched to DMA.

jeff lee says:

December 31, 2010 at 12:16 pm

New revenue stream for broadcasters………lawsuits.

eric lin says:

December 31, 2010 at 4:18 pm

I would hate this, the fight with Smith etc. if I were Comcast. TW need to figure out that viewers can use USB and new indoor-outdoor antennas. Pay TV is seriously loosing customers due lousy service, pricing and other kinds of thugish behavior. People can watch just about anything on the net. Google is all wet too. Why does the consumer need them? All powerful Geeks. Spare me.