News

YES Network Sues Time Warner Cable

8/29/2003 10:23 AM Eastern

Yankees Entertainment & Sports Network Friday afternoon sued Time Warner
Cable for breach of contract, following the MSO’s July 29 move to give its New
York-area customers the option to drop the service and save $1 on their monthly
cable bill.

Filed in the Supreme Court of New York County, the suit seeks a permanent
injunction prohibiting the 'negative repositioning' of YES, and would make Time
Warner live up to its obligations under its affiliation agreement to continue to
distribute the network on 'standard' expanded basic, as opposed to 'standard
plus,' which costs $1 extra per month with the 'à la carte addition of YES.'

The suit also seeks unspecified damages and reimbursement of legal fees.

In a prepared statement, the sports network, home to New York Yankees
regular-season Major League Baseball games and New Jersey Nets National
Basketball Association action, said that Time Warner is in 'violation of its
affiliate agreements with YES as a result of its recent action to negatively
reposition' the service.

'We believe that this action is not allowed under the ‘most favored nation’
clause

Time Warner Cable officials could not be reached by press time. It was
unclear it MSO executives had been served with the document last week.

It was unclear how many Time Warner Cable subscribers have dropped YES since
they were afforded that choice and are thus saving the $1 on their monthly
bill.

A source familiar with the situation, though, labeled the defections as
'minimal.'

Should YES lose Time Warner customers, Cablevision Systems Corp. - which had
a protracted carriage battle with the network in 2002 - under the terms of an
interim agreement reached in March, would indemnify the regional sports network
for revenue reductions, due to subscriber subtractions and legal fees for a
year.

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