• by David Goetzl  @dgoetzl, October 17, 2006

Avoiding what could have been a contentious battle and even a blackout, Cablevision has reached an agreement with Fox News Channel to keep the most-watched cable news channel on its systems.

With the contract winding down, executives at FNC parent News Corp. had suggested they were ready to prepare for a major fight with Cablevision in order to get the MSO to pay the rate increases Fox wanted for carriage of the channel. Top News Corp. executive Peter Chernin had even suggested the company might pull the channel until a resolution was reached.

Under the new deal, News Corp. reportedly will receive about 75 cents per subscriber from Cablevision--an increase from the 25 cents under the previous arrangement. The deal is for an unspecified number of years.

"We've enjoyed a good relationship with Cablevision and look forward to continuing our partnership," said Tim Carry, senior vice president of affiliate sales for FNC.

The deal sets a precedent for FNC to seek its desired rate increases with other cable and satellite carriers in upcoming negotiations.