Poll: Networks Wrong to Raise Fees

NEW YORK (TheStreet) -- The recent skirmishes between networks and cable companies are likely the first battles in what threatens to be a protracted war over fees.

From a consumers' perspective, there would appear to be a downside: that they, the consumers, will most likely end up bearing the burden of the price hikes, as cable operators pass those costs to their subscribers.

Nevertheless, the larger broadcasters seem to be gathering steam with the business model, as cable operators, who fear the notion of losing customers, are cving to their demands for higher fees. Time Warner Cable(TWC), for example, on New Year's day capitulated to the demands for increased fees of News Corp.(NWSA).

Separately, it was reported Thursday that Sinclair Broadcasting(SBGI) and Mediacom Communications(MCCC) had signed a new, one-year contract, one day before the expiration of an extension. The negotiations had been drawn out as Sinclair demanded higher fees to carry its programming.

Cablevision(CVC), however has pushed back against similar demands from Scripps(SNI) for the Food Network and HGTV. Apparently, Cablevision would rather lose subscribers from the loss of those networks than pay additional fees.