Sinclair Broadcast Pact Covers All Time Warner Subscribers
By Linda Moss -- Multichannel News, 1/22/2007 8:56:00 PM MT
Time Warner Cable’s new retransmission-consent deal with Sinclair Broadcast Group covers all of its subscribers in markets that carry Sinclair TV-station signals, not just those where Time Warner acquired systems from now-bankrupt Adelphia Communications.
Time Warner said Monday that it will carry the analog and digital signals of 35 TV stations owned or operated by the broadcaster in 22 markets for the next three years.
The cable operator and Sinclair finalized a new retransmission-consent pact Friday just hours before an extension of their old agreement was set to expire.
The new retransmission-consent deal expires Dec. 31, 2009, according to Sinclair and to Time Warner director of communications Maureen Huff.
The deal covers 6 million Time Warner subscribers in systems that carry local Sinclair-owned TV stations. Those systems will be able to carry not just existing Sinclair signals, but HD signals, as well, as they become available.
This means the agreement covers signals carried to almost 45% of Time Warner’s 13.5 million cable-television subscribers. Originally, Time Warner had said that it was negotiating with Sinclair regarding carriage of its signals to about 1 million former Adelphia customers it acquired last year.
The pact marks the first time that Time Warner agreed to carry Sinclair’s digital signals to most of its customers, according to the TV-station owner. The pact covers new HD signals as they become available, according to Huff.
Time Warner declined to comment on whether any cash payments would be made to Sinclair for carrying any of its TV stations’ signals. Huff said the company won’t comment on terms of the agreement.
The broadcaster is still embroiled in a retransmission-consent dispute with Mediacom Communications, and it pulled the signals for 22 of its stations from that midsized cable operator Jan. 6, impacting 700,000 subscribers.
“We see no reason why we should not be allowed to take the same deal that Time Warner got, and we think Sinclair is being unreasonable by not agreeing to arbitration or giving us the same pact,” Mediacom senior vice president of business development Calvin Craib said in a prepared statement.
"Sinclair is very pleased to have reached this agreement with Time Warner, which carries our stations to more subscribers than any other cable company," Sinclair CEO David Smith said in a prepared statement.
"We are excited that this agreement not only ensures retransmission of our signals by Time Warner for the next three years, but also provides for the carriage of our digital signals for the first time to most of Time Warner's subscribers,” Smith added. “This agreement -- which represents a mutually acceptable economic agreement between the parties -- is further indication of the value of our television stations to cable companies and provides a strong illustration of the successful operation of the free market for negotiation of retransmission-consent agreements."
Sinclair’s agreement with Time Warner includes: WABM/WTTO in Birmingham, Ala.; WNYO/WUTV in Buffalo, N.Y.; WDKA/KBSI in Cape Girardeau, Mo./Paducah, Ky.; WMMP/WTAT in Charleston, S.C.; WCHS/WVAH in Charleston. W. Va.; WSTR in Cincinnati; WSYX/WTTE in Columbus, Ohio; WKEF/WRGT in Dayton, Ohio; WMYV/WXLV in Greensboro/High Point/Winston-Salem, N.C.; WDKY in Lexington, Ky.; WTVZ in Norfolk, Va.; WCGV/WVTV in Milwaukee; WEAR in Pensacola, Fla.-Mobile, Ala.; WPGH/WPMY in Pittsburgh; WGME in Portland, Maine; WLFL/WRDC in Raleigh, N.C.; WUHF in Rochester, N.Y.; KABB/KMYS in San Antonio; WGGB in Springfield, Mass.; WNYS/WSYT in Syracuse, N.Y.; WTWC in Tallahassee, Fla.; and WTTA in Tampa, Fla.
The agreement also provides for the carriage of Sinclair's MyNetwork TV affiliates in Columbus and Dayton, Ohio, both of which are transmitted as digital multicast stations, according to Sinclair.
In other Sinclair news, subsidiary Sinclair Television Group redeemed, in full, the $307.4 million aggregate principal amount of its 8.75% senior subordinated notes due 2011.
The 2011 notes were redeemed in accordance with the terms of the indenture governing the 2011 notes at a redemption price of 104.375% of the principal amount of the 2011 notes plus accrued and unpaid interest.
The redemption of the 2011 notes and payment of accrued interest was funded from the net proceeds of Sinclair’s recently financed $225 million term loan A-1, a drawdown of its revolving facility and available cash on hand.
Tom Steinert-Threlkeld contributed to this report.
Seeking Retransmission Help
10/31/2009Mediacom Asks FCC For Retrans Help
10/24/2009Time Warner, Sinclair Deal Likely
12/31/2006Sinclair, Time Warner Settle
01/19/2007
