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Direct TV may drop Fox Networks starting Nov 1

Its_Meh_ChewIts_Meh_Chew Posts: 7,380 just the tip
edited October 2011 in Off Topic
gotta love Direct TV


The carriage dispute between DirecTV and News Corp. could impact the Fox Broadcasting Co. and its owned-and-operated stations by the end of the year.
Though both sides insisted when the conflict went public Thursday that it was restricted to a group of over 20 cable channels, an update Friday to Fox's own website devoted to the dispute, KeepMyNets.com, warned viewers: "And soon, in some markets you may lose your local Fox station."

A Fox spokesman clarified that "soon" does not refer to the Nov. 1 deadline DirecTV imposed on the cable channels, but Dec. 31.

The end of the year marks the end of a separate deal between DirecTV and News Corp. that covers the 27 Fox O&Os, 10 of which are MyNetworkTV-branded stations. All together those stations comprise 36% of the U.S.

A separate deal between the companies covering the Fox local stations could also be combined into the current negotiation for the cable networks, both sides confirmed. A third deal covering Fox News Channel may be included as well.

Reached for comment, DirecTV executive VP Derek Chang did not rule out the possibility that Fox stations could face a year-end blackout, but characterized that as Fox's choice.

Asked whether the Fox network would remain on air if there was no deal or extension covering it by Dec. 31, Chang replied, "I don't know the answer to that question. We would certainly continue to carry the Fox network to the extent we came up on that deadline. They said they would not allow that to happen."

A Fox spokesman denied the company ever indicated over the course of negotiations that it would pull its own broadcast signal at year-end. "No executive at Fox Networks never said to anyone at Direct TV that come Dec. 31, we're taking our signal down."

Should News Corp.'s broadcast property come under threat of removal, it would dramatically ratchet up the stakes in the companies' conflict. When News Corp. and Cablevision had a similar tussle last year, the two-week blackout of the Fox network raised the prospect of FCC involvement.

Retransmission consent fees for TV stations have emerged as an increasingly thorny issue in carriage negotiations given added pressure congloms with broadcast holdings are under to maximize secondary revenue streams beyond advertising dollars.

The fate of the Fox stations will come down to whether the current negotiation is extended beyond the Fox cable channels.

It's certainly linked," said Chang. "We're trying to work through a deal with Fox that covers almost all of their services. Fox has gone down the road in the past of linking their broadcast networks to their other cable channels, as a result the conversations are all bundled."

A Fox blackout in January could conceivably impact the network's NFL post-season coverage of the NFC conference. The return of the network's highest rated series, "American Idol," is scheduled for Jan. 22. What would be unaffected would be the BCS championship games, which moved off Fox to ABC in 2011.

To further complicate matters, Fox News Channel has an affiliate deal of its own with DirecTV scheduled to expire Jan. 31, 2012. Whether that pact will also be combined into negotiations for the stations and other cable channels is unclear.

In addition, News Corp. owns other cable channels not covered in the primary Fox Networks deal that is the crux of the dispute with DirecTV, including Big 10 Network and National Geographic Wild.

DirecTV has claimed that News Corp. is seeking a 40% increase for a new carriage deal, which Fox denies.

The companies took their dispute over affiliate fees public Friday, using TV and the Internet to blame each other for the possible removal of over 20 channels on Nov. 1 if they can't reach a deal.

Less than 24 hours after the rift was made known late Thursday, Fox began airing a crawl across its networks on DirecTV alerting subscribers to all the channels the satcaster could drop.

DirecTV did same on its on-screen channel guide with a message that specified that the local Fox station and Fox News Channel would be unaffected by the Nov. 1 suspension. It also plugged its own website relevant to the dispute, OurPromisetoYou.com.
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