Press Release
Consumers Shut Out of Fall Classic by Fox-Cablevision Brawl
Contact: Timothy Karr, 201-533-8838
WASHINGTON -- Cablevision subscribers in the New York region missed out on game one of the World Series last night — the result of a spat between the company and Fox that marks its 12th day on Thursday. Fox pulled its channels from Cablevision’s lineup on Oct. 16 after the two companies could not reach an agreement in retransmission negotiations.
Free Press Policy Counsel Corie Wright made the following statement:
"Nearly two weeks of blacked-out channels, with no end in sight, points to a market failure in which both sides are to blame. The Federal Communications Commission needs to fix this broken system and ensure that consumers are not caught in the crossfire of future spats between media giants.
"Transparency is critical to a functioning market, and the fact that neither side wants to discuss the industry's cost structure shows how badly this market is broken. To inject some much needed sunlight into the system, the FCC should force broadcasters and cable companies to publicly disclose the prices and terms of each and every channel. In this case, the FCC should require that Cablevision disclose how much it currently pays for Fox and other networks on a per-customer basis. Fox should be required to disclose how much it currently receives from Cablevision and how much it is asking for now. With mandated transparency, consumers can judge for themselves whether Fox is asking for a fair price for its content.
"While Fox and Cablevision continue to duke it out, consumers are still paying for channels they aren’t getting. Now, Cablevision subscribers are missing the World Series -- a major event they surely expected to be able to watch at home when they signed their subscription contracts with the cable company. Fundamental fairness requires that Cablevision customers be reimbursed for programming they have paid for but have not received. Cablevision has made some small gestures like offering to reimburse customers for the cost of watching the World Series online, but the company should do the right thing and grant an across-the-board refund for all affected subscribers."
Free Press Policy Counsel Corie Wright made the following statement:
"Nearly two weeks of blacked-out channels, with no end in sight, points to a market failure in which both sides are to blame. The Federal Communications Commission needs to fix this broken system and ensure that consumers are not caught in the crossfire of future spats between media giants.
"Transparency is critical to a functioning market, and the fact that neither side wants to discuss the industry's cost structure shows how badly this market is broken. To inject some much needed sunlight into the system, the FCC should force broadcasters and cable companies to publicly disclose the prices and terms of each and every channel. In this case, the FCC should require that Cablevision disclose how much it currently pays for Fox and other networks on a per-customer basis. Fox should be required to disclose how much it currently receives from Cablevision and how much it is asking for now. With mandated transparency, consumers can judge for themselves whether Fox is asking for a fair price for its content.
"While Fox and Cablevision continue to duke it out, consumers are still paying for channels they aren’t getting. Now, Cablevision subscribers are missing the World Series -- a major event they surely expected to be able to watch at home when they signed their subscription contracts with the cable company. Fundamental fairness requires that Cablevision customers be reimbursed for programming they have paid for but have not received. Cablevision has made some small gestures like offering to reimburse customers for the cost of watching the World Series online, but the company should do the right thing and grant an across-the-board refund for all affected subscribers."
