Time Warner Cable to Fox: Can we talk?

Time Warner Cable open to arbitration with Fox

By Julianne Pepitone, staff reporterDecember 30, 2009: 3:42 PM ET

NEW YORK (CNNMoney.com) -- Time Warner Cable pronounced Wednesday which it is willing to let the Federal Communications Commission resolve the ongoing price dispute with the Fox Network, through the routine of binding arbitration.

That suggest was done in reply to the minute from Sen. John Kerry, D-Mass., which was sent to both Time Warner Cable as well as News Corp. (NWS, Fortune 500), Fox's primogenitor company, propelling the companies to resolve their feud before the Dec. 31 deadline.

If the understanding is not reached before which deadline, all of the Fox owned promote as well as wire networks could vanish from Time Warner' Cable subscribers' televisions upon New Year's Day.

In the letter, Time Warner Cable also offered to come in into an interim agreement with Fox to equivocate such the blackout. A Fox orator pronounced the network is operative upon the reply to Kerry's letter.

"If both parties conclude which the many appropriate alternative to the negotiated agreement is to have screens go dim for consumers, afterwards they will have neglected the core interests of millions of households," Kerry pronounced in the letter. He is the chairman of the Senate Commerce Subcommittee upon Communication, Technology as well as the Internet,

The companies have been during contingency over the price which Time Warner Cable should compensate News Corp. for the right to broach Fox networks into the subscribers' homes.

News Corp. wants to assign Time Warner Cable (TWC) $1 per subscriber for airing the promote station, Fox. In the past, providers have paid the price only for wire networks, never for promote television. Fox's wire channels include FX, FUEL TV, Fox Movie Channel, Fox Sports en Espaol, as well as more.

Time Warner Cable argues which the network is charging too much to renew the contract. News Corp. says the price is reasonable given it's equal to what Time Warner Cable pays for many wire stations, which upon average receive reduce ratings than Fox.

"[We] remain committed to negotiating in great conviction as well as building beautiful proposals which would be acceptable to both sides as well as benefit consumers," pronounced Glenn Britt, arch executive of Time Warner Cable, in his minute to Kerry.

End-of-year standoffs between wire providers as well as TV networks aren't uncommon, given these deals typically expire upon Dec. 31.

A Fox Networks orator told CNNMoney final week which the association is prepared for ongoing negotiations, as well as which the channels would go black if the deadline passes but the resolved contract.

If the brand new year doesn't move the brand new agreement, it would be the lose-lose situation for the companies. Time Warner Cable's thirteen million business would positively be angered to remove access to programming like NFL Football, "House" as well as "American Idol," as well as some competence terminate their subscriptions. At the same time,the Fox networks would remove thirteen million viewers which the advertisers wish to reach.

The companies will expected come to an agreement, however. Last year Time Warner Cable as well as Viacom (VIA), which owns MTV, Comedy Central as well as Nickelodeon, were unresolved in the similar battle but reached an agreement early upon Jan. 1.

First Published: Dec 30, 2009: 2:46 PM ET