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Fox News Channel – Time Warner Cable Deal Will Increase Cable Rates for Millions

Phillip Dampier August 8, 2012 Consumer News, Time Warner Cable 7 Comments

While Time Warner Cable will pull local channels off its cable lineup when contract negotiations fail, the company was less aggressive fighting demands from Fox News Channel parent company News Corp., and caved in to higher fees for the cable news network.

People familiar with the talks said News Corp. won a major rate increase from the cable operator for its Fox News Channel which could reset the bar when other cable companies negotiate renewal contracts.

Sources told the Los Angeles Times Fox News Channel will now cost each cable subscriber more than $1 a month, up from 89 cents. Time Warner Cable will likely bundle that increase into the next round of customer rate hikes. Fox News Channel’s new price puts them among top tier cable networks like TNT and USA.

Last year,  News Corp. President Chase Carey told Wall Street contract renewals for the channel “will take subscription fees to a whole new level.”

The only concession Time Warner Cable seemed to win was a more limited renewal agreement that only covered the Fox News Channel, Fox Movie Channel, and the barely-watched Fox Business Network. Time Warner Cable officials refused to renegotiate earlier, yet to expire deals with less popular Fox-owned cable networks.

The Times noted Fox News Channel did not want to lose more than 10 million cable subscribers at the height of election season, and the cable company did not want to deal with loyal Fox News viewers likely to complain or leave over the loss of the network.

With the renewal, every Time Warner Cable subscriber will pay even more for the channels whether they watch them or not.

 

Currently there are 7 comments on this Article:

  1. Anonymous says:

    It would be easier for people to pay for the channels they want to pay for. This is why bills are so high, these other channels are demanding huge amounts of money for your bill increase. And some of those channels I bet most of us dont care to watch.

    If it was a model of pay for the channels you watch, so if lets say I dont watch fox news (which I dont) I wouldnt see a bill increase.

  2. Justplainbob says:

    Fox News Channel is the highest rated news network. Their shows are consistently grabbing market share. So I am not shocked at them asking for more. But this is the name of the game these days and this is why I have to play the silly game of switching service providers every couple of years to take advantage of generous promo deals.

    • Yes I recognize they have the ratings, but the inflating race of who can extract more money means ultimately we all end up paying. I did find it interesting that the Los Angeles Times pointed out News Corp. was partly-motivated to cut a deal because this is an election year. I guess we need to make up our own minds as to whether the motivation here is to influence the outcome or simply cash in on advertising revenue made possible by presumably higher ratings.

      I don’t watch Fox News myself because there is no real news there. They have completely given up on even pretending to be a straight news network. Spend any morning with the Fox Froot Loops and see for yourself. The scariest moment I have ever experienced watching television was seeing the always-intellectually-challenged Steve Doocy introducing his son Peter as a new Fox News correspondent. That apple didn’t fall far from the tree. God help us all.

      My favorability of MSNBC and even CNN isn’t much better. Fox and MSNBC are ideological opposites running political talk shows (MSNBC at least has Joe Scarborough so you get a different, also-annoying view if you want one). CNN seems to have abandoned the pretense of hard news as well and now runs stories and features you might see on Today or Good Morning America. Yes, the always-constipated Wolf Blitzer and Candy Crowley are actual journalists, but they have to work next to the likes of hint-o-sleaze Piers Morgan, former editor of tabloid trash newspapers in the UK and just this side of the line on the phone hacking scandal over there.

      These are my choices? Where is BBC World? Hell, France 24 and Russia Today (RT) actually deliver more hard news (even with the Putin touch) than any of the domestic three. Even Al-Jazeera English runs more hard news.

  3. Justplainbob says:

    I respect your opinions Phillip, but Fox does indeed have **Real** news. Yes, I am a conservative (surprise !) I do not watch MSNBC and rarely watch CNN. CNN’s ratings are in the tank, but it is easy to see why. And the meanness that exists on some of MSNBC’s shows does not appeal to me at all. Without getting too political, this nation is in trouble and it is not totally the fault of the left. Keep up the great work Phil.

  4. Tina Carlson says:

    I am an LONG TIME Time Warner Customer who is now FURIOUS………Had scheduled appt with technician to come out today, took time out of MY DAY on a Saturday morning when I could have gotten paid to work time and 1/2 at my job and when the tech called at about 8:30am, he was rude, condescending and laughed when I said my internet was “intermittent”. Then he stated “what do you want me to do about it then?”. I told him he has an appointment to be here, he stated “are you home now?”, I told him he was calling me on my home line so yes, he then said “lady, I don’t know where you are right now”. At that point, I hung up. I then spent the last hour on the phone with various offices in Time Warner (to include dispatch twice) and offered nothing other then “we can send the exact same person who treated you rudely out today” or make me take more time out of my schedule to wait on another weekend to another rude, incompetent technician to come out? My son has spent over 6 hours in the last 4 days on the phone with incompentent “advanced technical support” team for IT (who were all cursing, laughing and talking rudely about other callers in the background) and the last one told him to have him “mommy call in” My son is 16 years old and can follow basic computer setting troubleshooting steps that they could have easily walked him thru but they refused to because they are too lazy.
    So……….Time Warner is unresponsive to customer, they never call anyone back who has a complaint and they don’t care that they are losing customers left and right because they have the next “sucker” waiting just around the corner. I will pay for someone to come out and troubleshoot this issue myself, send Time Warner the bill and trust me, they will pay it or I will see them in court.
    And if you have a Time Warner employee scheduled to come out into your home, watch out and watch their every move. Based on the level of professionalism I have received in the last week, after being a LONG TIME Time Warner customer……….Time Warner doesn’t care and now I continue to have spotty internet and being treated like dirt by Time Warner emplyees. And now, as a single parent, I cannot get my son’s schedules online, school grades, etc unless I pay someone $50 hour to come out to look at this because Time Warner hires irresponsible field techs who I would not trust around a dog at this point. And how am I suppose to afford this? This is GROSS NEGLIGENCE and CORPORATE IRRESPONSIBILITY on behalf of Time Warner. And I can guarantee you no one will try to contact me about this complaint.

    • Bill says:

      I also have Time Warner cable/internet. I’m sorry your having issues with their support and I can not comment on that. However, there is one really great reason to stay with Time Warner even with your problems… They have no data cap on your internet usage. AT&T, Cox, Comcast all have and are switching their people to have caps on their internet usage. Do your homework and do not support these company’s their are using their monopolies to restrict your internet usage!

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