NEW YORK (Reuters) – Customers of Cablevision Systems Corp in New York could lose shows like Glee' and 'House' as well as NFL football games as the cable operator jousts with News Corp's Fox Networks over a programing dispute.
The dispute is the latest this year between cable operators reluctant to pay higher fees to programmers. The arguments have intensified as broadcasters like Fox and CBS Corp demand cash for the right to carry their free-to-air signals.
New York Congressman Steve Israel told Reuters on Wednesday the sides ought to agree to binding arbitration.
Israel said Cablevision and Fox should keep programing on the air even if they fail to reach a deal before deadline at midnight on October 15.
"I want them to work it out without holding my constituents hostage," said Israel.
News Corp CEO Rupert Murdoch wants Fox to get cash for retransmission of its signals.
Miller Tabak analysts estimate that Fox is looking for about $98 million, up from around $20 million now, though it is more likely that both parties would meet somewhere in between.
The channels that could be affected include local stations Fox 5 and MyNetwork 9 in New York, Fox 29 in Philadelphia and cable networks Fox Deportes, NatGeo Wild and Fox Business Channel.
"In 2009 Cablevision paid itself and charged other pay-TV companies considerably more for just two of its sister company channels (MSG and MSG Plus) than 12 of the Fox channels they carry, even though the Fox channels enjoy significantly higher ratings," Fox said in a statement.
MSG Network is owned by Madison Square Garden Inc, which was spun off from Cablevision last year and shares common ownership through the Dolan family.
Cablevision said in a letter on Tuesday to Fox that the broadcaster is demanding to be paid more than all other major New York broadcasters combined.
"We urge News Corp to reconsider our fair offer or return to the table and negotiate an agreement," the company said.
Fox is also in two ongoing programing fee disputes with satellite TV provider Dish Network Corp. Those dispute have seen some of its cable channels go off air and there is the possibility that Dish customers could also lose Fox local broadcast stations at the end of the month].
Back in March Cablevision customers lost Walt Disney Co's ABC for several hours till 15 minutes into the live telecast of the Oscars Awards.
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