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TWC-Fox Deal Changes Retrans

  • Mediaweek, Tuesday, December 14, 2010 11:54 PM
A deal struck last January between Time Warner Cable and News Corp. included a precedent-setting condition to allow TWC to carry Fox's network programming if retransmission negotiations with Fox affiliates break down. Many TV execs likened Fox's move to throwing its non-owned Fox affiliates under the bus. Just how much leverage Fox affiliates could lose in retrans negotiations is getting tested as Sinclair Broadcast Group and TWC try and hammer out a deal.

If the deadline passes without a deal, TWC will pay Fox a fee for network programming. If more TV networks bypass affiliates and do retransmission deals directly with pay-TV providers, it could add up to a tough situation for TV groups looking to retransmission fees as a viable second revenue stream.

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