Tuesday, November 2, 2010

Cablevision vs. News Corp continues (Part 2)



A couple of days ago Cablevision (the cable company that serves the New York metropolitan area) and News Corporation (owner of Fox) were having some difficulties reaching an end to the negotiation terms for the cable company to carry Fox.

Cablevision’ subscribers were unable to watch Fox since October 16, and their main concern was that Fox was going to broadcast the World Series. While the dispute was taking place, subscribers were unable to watch these series, and some others were forced to switch to other cable companies. Other methods used for subscribers were to watch shows online and some others went back to the use of an antenna.

The dispute finally came to an end last Saturday (October 30), just in time for cablevision subscribers to watch the third game of the World Series. According to an article in the New York Times, the two companies came to an agreement, in which Cablevision accepted to pay a huge amount of money to News Corp. Cablevision stated that it was ridiculous they had to pay so much money to carry these channels when people can get them for free over the airwaves.

Even though the two companies reached a deal, it seems they still involve in a big dispute. Cablevision stated that the retransmission consent system is badly managed and they ask the government to take a more active action in the issue. Since they, and some other cable companies, believe that the government doesn’t care much about these issues.

However, News Corporation stated that Cablevision has always been complaining about the prices. They also alleged that the only reason why Cablevision wants to get the government involved is because they want a change in the regulations to benefit their company.

Everyday we see disputes like this, in which businesses try to take the most advantage out of their services. It’s ridiculous that the broadcast company want to charge so much when subscribers can get these same channels for free with an antenna. And what is unfair is that subscribers are the ones who will have to pay the price, because it’s for sure that the cable company will raise their prices. In situations like this, I think that government (precisely the FCC) should take action, because at the end consumers are the most affected.
           

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