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Wednesday, October 20, 2010

Cablevision and Fox go toe to toe 



The pipes versus the content. In this case, the pipes are represented by Cablevision, provider of cable television and internet connection services in the New York area. The content is represented by the Fox network owned by News Corporation. Billionaires with agendas on both sides to be sure, massive corporations with lots at stake.

What is the dispute you ask? Fox, like the other networks: ABC, CBS and NBC, has long given its content to the cable television providers for free. Why not? Fox, like the other networks, broadcasts its content for free over the airwaves. Back in the day, people used to commonly receive it on antennas for free.

In recent years, as the antennae using public has dwindled to near nil, the networks have been trying to charge retransmission fees to the cable provider companies: Cablevision, Time Warner, Comcast, etc. (pipes), fees which mimic the fees that cable television networks: ESPN, TBS, MTV, etc. (content) charge cable television distributors (pipes) for their programming.

The fight over Fox~News Corporation trying to charge these fees to Cablevision has caused an already four day long shutdown of Fox's programming to Cablevision subscribers. Fox reportedly wants $1.00 per subscriber. This has meant no network TV Shows, no National League Championships Series' games, and no Sunday Giants football for more than three million irritated subscribers in the New York area. This is the single largest corporate battle in this arena to date. Previously, Walt Disney Company and Cablevision had brawled over fees for the ABC network, culminating in a twenty hour content cutoff that briefly interrupted the Academy Awards.

In the current dispute, yesterday, day four, Fox~News Corporation signaled a potential lateral escalation when it blocked Cablevision's customers from being able to view Fox content on Fox.com or Hulu.com. The blockade, which further mocked the concept of net neutrality, was quickly withdrawn when News Corporation realized that by blocking Cablevision subscribers’ computers (pipes) it was also blocking some people who pay Cablevision for Internet service only, including consumers who pay competitors like DirecTV for television.

The government would love to get involved. The chairman of the FCC issued a statement. Senator John Kerry threatened some wafflely and likely useless legislation.

The super short summary for the average person; network television is not free, cable distributors are going to pass the costs along to you and don't count on making an end around on the internet, either.

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