Cablevision Shocked Over ABC Warning
NEW YORK (
) --
Cablevision
(CVC)
called
Walt Disney's
(DIS) - Get Report
warning that it might impose a blackout of ABC in New York for Cablevision subscribers "shocking."
"It is shocking that in these difficult economic times, ABC Disney is threatening to remove WABC unless Cablevision and its customers pay $40 million in new fees for programming that it offers today for free, both over-the-air and online," said Cablevision Executive Vice President Charles Schueler.
"It is not fair for ABC Disney to hold Cablevision customers hostage by forcing them to pay what amounts to a new TV tax," he added.
Disney on Monday said that an issue over fees with Cablevision could lead to a blackout of its ABC network for almost 3 million Cablevision subscribers in the New York area this weekend.
"Despite our best efforts, it has now become clear that Cablevision has no intention of coming to a fair agreement. We can no longer sit back and allow Cablevision to use our shows for free while they continue to charge their customers for them," said Rebecca Campbell, the general manager of WABC-TV, in a statement.
People familiar with the matter told the
Wall Street Journal
that Disney had sought fees of as much as $1 a month from Cablevision for each of the cable operator's subscribers. A source told the newspaper that Disney now is asking for a substantially lower monthly fee from Cablevision for the right to air its ABC station in New York.
Cablevision's spat with Disney is similar to a fee dispute that was resolved at the end of 2009 between
News Corp.'s
(NWS) - Get Report
Fox network and
Time Warner Cable
(TWC)
.
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