Fox and Time Warner Kiss And Make Up

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After their falling out which threatened to take top shows like the Simpsons and football games off air, Fox and Time Warner have kissed and made up. After several days of posturing and name calling, a truce has been agreed that will keep News Corp.'s Fox television stations and several of its cable channels playing on Time Warner's Cable network.
The deal was struck less than a day after the previous contract expired, averting a potential public relations disaster for both companies. Otherwise, Time Warner Cable customers would have had to find alternative ways to watch National Football League games broadcast on Fox on one of the biggest sports times of the year.

Fox Deal Lets TW show Content
News Corp. granted extensions to Time Warner Cable to keep the Fox signals on the air while talks continued, and viewers were spared having to wonder what happened to their programs.
Such standoffs between programmers and distributors, once rare, are becoming more commonplace. With advertising dollars tougher to come by and audiences fragmenting, broadcasters are seeing fees from cable and satellite operators to retransmit their signals as a crucial component of their financial health.
The dispute centered around the fees that Time Warner pays Fox to broadcast its content. Previously, the Fox network was offered for free, and cable companies essentially paid more for FX and other cable channels that News Corp. also owns. This time, News Corp. is demanding $1 per subscriber every month for the network itself.
Fox, now losing revenue from advertising and with increased programming costs, argues that Time Warner Cable is making money off its programming, so it should get a cut of subscription revenue. Time Warner Cable contended that Fox was trying to extract too high a price and bought advertisements in newspapers accusing it of trying to hold consumers "hostage."
Neither Time Warner nor News Corp. would provide details on the new agreement. In a statement, News Corp. President Chase Carey said the pact was "fair" and "recognizes the value of our programming." Time Warner Cable Chairman Glenn Britt called it a "reasonable deal."
Although News Corp.'s Carey had talked tough about sticking to Fox's demands, analysts viewed the $1 fee as a jumping-off point for negotiations. Typically, carriage deals last at least three years, and often five, with the fees paid by the cable operator rising over the period of the deal.
Time Warner Cable, which is also negotiating with Food Network, may face another such scenario this year when it has to sign a new agreement to continue carrying Walt Disney's ABC stations, including KABC-TV Channel 7 in Los Angeles. Those two companies are no strangers to bitter fights. In 2000, the signals for ABC's stations went off of Time Warner for almost two days during a public battle.
As revenue shrinks and content starts heading to us via many new and different channels, expect more fireworks like this in the coming year.

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