Cablevision, Scripps: No Dinner Talk
Negotiations Ceased Dec. 31, When Food Network, HGTV Were Pulled Off Operator's Air
Mike Reynolds -- Multichannel News, 1/2/2010 8:31:45 PM
On the third day of 2010, HGTV and Food Network remained off of Cablevision's programming menu.
The parties, whose contract expired at midnight on Dec. 31, have not negotiated since Thursday, when the renewal talks failed over license fee differences.
SNL Kagan data put Food's average monthly license fee at about 9 cents, while estimating HGTV's at around 12 cents. Scripps said it was receiving less than a quarter for both networks from Cablevision. Published reports indicate that the networks' parent, Scripps Networks Interactive, could be looking to treble those rates.
Scripps began running crawls on the two networks around 4 p.m. on Dec. 31 alerting viewers that there might be a disruption in service.
Since the signals were pulled, Cablevision has been continuously running a "customer" alert on the channel positions, featuring Scripps and the two networks' logos.
The message, in part, says that Scripps, upon the conclusion of the contract on Dec. 31, elected to pull the channels: "Cablevision has made a number of fair and reasonable proposals that would allow us to continue carrying Food Network and HGTV in the same manner that we have over the last several years. All of our proposals have been rejected by Scripps... We're sorry that Scripps' current financial difficulties are making it impossible for them to continue our relationship under terms that are fair to everyone. We wanted to keep bringing you Food Network and HGTV, while we continued to negotiate, but Scripps has decided to pull these channels...We're hopeful that Scripps will reconsider its decision and choose to continue the type of business relationships that both companies have enjoyed for years."
For her part, a Scripps spokeswoman said Saturday "Like the HGTV and Food Network viewers, we are deeply disappointed in the situation with Cablevision, especially when you consider that our networks can be seen on every other cable, satellite and telecom service across the country. We are going to do everything we possibly can to right the situation and hope to engage Cablevision in meaningful discussions to resolve this as soon as possible."
Scripps reports that viewers have sent almost 65,000 e-cards to Cablevision from the ilovefoodnetwork.com and ilovehgtv.com Web sites, asking the operator to "get our networks back on the air."
Cablevision, on Jan. 2, declined further comment, pointing again to the statement it issued shortly after the turn of the year: "Unfortunately, Scripps has decided to stop distributing HGTV and Food Network to Cablevision customers upon the expiration of our current agreement at midnight, Dec. 31. We are sorry that Scripps' current financial difficulties are making it impossible for them to continue our relationship on terms that are reasonable for Cablevision and our customers. We wish Scripps well and have no expectation of carrying their programming again, given the dramatic changes in their approach to working with distributors to reach television viewers."
Elsewhere, Scripps is "continuing with positive negotiations with Time Warner Cable," noting that it can't comment further, while those negotiations progress.
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Greed is a powerful thing and at a time when all of us are counting pennies all these two could do is argue over money. I just read that Scripps is doing an expansion that cost a couple of million which explains why they want or need an increase as large as they are demanding.But the paying viewing public should not be passed along the bill for their need nor want for expansion and investments. On that same note perhaps if the Dolans could get the Knicks to become a winning franchise as they were when I was a kid they could afford to pay Scripps a bit more than the offer they have currently on the table that could be considered fair value for their product. Either way WE lose and another greedy cable company profits as viewers will have to jump ship to a company that plays ALL of the channels they want to see and that is not currently in contract disputes. Yes I'm talking about TimeWarner also.
T.Taylor'Caruso - 1/10/2010 3:02:47 PM EST -
I like what Kyl said " Greed, Greed and more greed"
The was a time you paid for cable " commercial free television". Cable companys are greedy. Yes I pay $18.00 to watch 13 standard channels. There was a time in some areas you could select the type of channel you wanted watch via the cable box. Those days are gone.
Lately I find my self more annoyed than entertained.
When I go to lunch in the Cafe` in our office building they let me watch HGTV. Today I click onto HGTV to find I wont be watching it.
Scripps wants a 200% increase in fee's? Are these people for real? All these big cable empires need a reality check.
Guitar Sister - 1/4/2010 3:43:55 PM EST -
Changing cable providers is a short term fix at best. FIOS will face its own showdowns as well, one day. And didn't it recently announce a significant rate hike for its video services? Cablevision made a business decision based on the (Nielsen ratings) fact that the vast majority of its cable viewers do not watch either network. They know they will lose some subscribers over this issued, but weighed that cost against the cost of tripling its Scripps programming fees. Time will tell if Cablevision was right or not. My guess is that Scripps blinks first.
winston salem - 1/4/2010 1:19:28 PM EST -
That's the thing you don't get, Cablevision is making enough money so if every network wanted to double their costs, Cablevision can do so WITHOUT increasing our rates and STILL make a decent profit. FiOS is 100x better, more variety of niche channels like Lifetime Movie Network, RFD, Fine Living, DIY, CMT Pure Country, BBC America, Discovery Health, and unlike with Cablevision you don't have to pay $8.95 a month for Disney Channel on Demand, that's FREE along with Disney XD, SoapNet, ABC, ABC Family and ESPN On Demand.
KyL - 1/4/2010 12:36:54 PM EST -
Either way, the consumer loses. If Cablevision renegotiates higher fees for these channels with Scripps, the subscriber will be hit with a higher rate increase to cover it. It's GREED on the part of both companies. People feel Verizon is going to help? Please. Anyone familiar with their cell phone prices and contracts? GREED, GREED, GREED and the average consumer keeps buying into it. Just went to the library took out some great cookbooks for FREE. I will really miss Food Network, but you know what Scripps? Give the average family a break and cut the salaries of these mega hosts. Now that would show me something.
Mary Fior - 1/4/2010 12:12:16 PM EST
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