News Corp.'s Carey Rejects Arbitration, Interim Carriage In TWC Retrans Dispute


In a Dec. 30 letter to Sen. John Kerry (D-Mass.), News Corp. deputy chairman-president-COO Chase Carey rejected the idea of arbitration and an interim carriage agreement in the company's retransmission-consent dispute with Time Warner Cable.
"We respectfully believe these discussions do not belong in the hands of a third party," Carey's letter reads."We understand the justifiable concern felt by Time Warner households in the face of a possible service disruption.
However, we believe the appropriate solution is for Time Warner Cable and Fox to negotiate a fair and mutually beneficial deal."
Kerry suggested arbitration and interim carriage in a letter to both the operator and Fox. Time Warner Cable chairman Glenn Britt gave a thumbs-up to the proposal. However, the cable operator has not officially sought arbitration from the FCC. "While Time Warner says they would submit to arbitration in front of us, neither party has filed anything," said a media bureau spokesperson.
In an internal News Corp. memo also issued Dec. 30, Carey, indicated that an agreement was not likely by the time the deals expired and that the company would pull their network signals: "At this time, it looks like we will not reach an agreement and our channels may very well go off the air in Time Warner Cable systems at midnight tomorrow, December 31."
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