Cablevision and Fox in one more TV price argument

In yet another very public dispute over cable Television fees, Cablevision and Fox are threatening to turn off weekend baseball along with all the other content accessible on Fox’s 12 channels. Midnight on Friday is the deadline for the two businesses to come to an agreement. This is the latest volley within the debate over content pricing. Fox thinks its content is worth more, while Cablevision refuses to pay.

Cablevision and Fox battling over rates

The price Cablevision is willing to pay for the content that Fox is going to be providing is where the Cablevision and Fox dispute begins. Each and every year, Fox Television gets $70 million from Cablevision. This is for 12 channels total. NewsCorp, owner of Fox Television, is asking for $150 million for those same channels this year. Fox TV will not be available to Cablevision customers if the amount is not paid. That is what NewsCorp promises.

Trying to arbitrate the Cablevision/Fox dispute

Cablevision has tried to call for arbitration within the argument over the cost of content. Fox has said that they absolutely will not enter arbitration. Fox and Newscorp explained why this is a bad idea. It would “reward Cablevision for refusing to negotiate fairly.” If the dispute is not concluded by Friday at midnight, Cablevision customers will not be able to watch any of the 12 Fox channels.

The question of content benefit

The real question behind the Cablevision and Fox dispute is the value of content. The reason why cable television companies are business is because of the content they provide. They are supposed to cater to the customer’s wants. Licensing the content is the bread and butter of cable business. This, however, means that content creators may be able to hold content hostage. Only two cable Television providers are accessible to customers in most places. This is why there is practically a monopoly with the business. Should content providers be able to set any price for content, or is television a public service that, like some New York representatives are claiming, ought to be more carefully price-controlled?

Articles cited

MSNBC

msnbc.msn.com/id/35747720/ns/business-media_biz/

Physorg

physorg.com/news/2010-10-cablevision-fox-dispute-affect-baseball.html