Cable Firms Again Say They Won’t Pay Cash in Retransmission Spats
Cable One and Charter won’t pay cash to head off a retransmission dispute shaping up in Corpus Christi, despite demands by a station owner for such remuneration, said cable company officials. With the cable operators’ contracts with McKinnon Bcstg.’s KIII (ABC) due to end Dec. 31, a standoff looms over that firm’s demand for cash compensation for carriage. Such disputes aren’t new: Long fights have pitted cable operators including Cox against broadcasters. Cable, as usual, has taken a firm stand, over objections from CBS parent Viacom. Industry officials have said they'll consider only compensation other than money, such as purchasing ads, for carriage (CD Sept 19 p3).
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In talks with KIII’s owner, Charter has a policy of “no cash for carriage,” said David Andersen, senior vp- communications. “We're making progress in every situation” where carriage accords are up for renewal, he said: “We remain optimistic of reaching agreeable terms.” He wouldn’t elaborate. A spokeswoman for Cable One said it offered to buy ads on KIII in place of monetary payment
- to no avail. “We have given them several alternatives that we feel are worth more than the amount they requested,” she said: “We are definitely willing to work with them and come up with creative solutions… They have definitely drawn a line in the sand in terms of cash for carriage.”
Chances aren’t good for a deal between the cable operator and Gannett’s KPNX (NBC), serving Phoenix, said the spokeswoman. KPNX wants $600,000 annually for a 3- year contract to carry its signals to about 60,000 rural cable subscribers, she said. That expense would be on top of Cable One’s almost $1 million per year expense to bring in signals from all of Phoenix’s stations, she added: “It’s a lot of money for something we've always provided for free.” Asked about prospects for resolution, she said: “We're not optimistic on this one at all.” Gannett had no comment.
McKinnon is standing firm in its demand for compensation for KIII, said Pres. Michael McKinnon. Deals to buy ads don’t constitute payment, he said: “If they have a policy that says the local stations aren’t worth paying for, then that’s their policy. They're paying for every other cable channel.” Cable One and Charter “may be left out in the cold if they're not careful,” he said. McKinnon said he expects Time Warner Cable -- with about 100,000 customers who get KIII to come to the bargaining table. Time Warner Cable officials didn’t return calls. “I imagine we'll work out an agreement with Time Warner,” said McKinnon: “I think Time Warner would lose a lot of subscribers to DirecTV… We're open to working out a deal with them.”