Talks, But No Progress in N.Y.

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New York -- Ongoing talks involving Time Warner Cable and
Rainbow Advertising Sales Corp., which operates the New York Interconnect, have failed to
change the status of the interconnect, which lost its one-stop-shopping appeal for
advertisers in March, when the MSO pulled out.

"We're hoping that there's some movement
there" in the near future, said Filemon Lopez, senior vice president of ad sales for
Comcast Corp.'s Comcast Cable Communications, adding, "I don't think that
advertisers are too thrilled" that the interconnect lacks such a key component.

Minus Time Warner's nearly 1.3 million subscribers in
the DMA, the Big Apple interconnect now reaches 3.2 million households.

Larry Fischer, president of Time Warner CityCable, who was
the interconnect's chairman before the MSO's pullout, said there have been
meetings at the highest levels among executives from Time Warner and Rainbow. Rumors of
"a superrep" persist -- meaning a merging of National Cable Communications and
Cable Networks Inc. -- which might be related to a possible reorganizing of the
interconnect, he said.

Larry Zipin, Time Warner's vice president of ad sales,
was less talkative. "There have been discussions," he said, but it's too
soon to talk about an outcome."

Eglon Simons, the interconnect's vice president and
general manager, was unreachable for an update at press time.

Elsewhere, a sales executive at another MSO said
discussions are continuing. "One of these days, that may come to fruition," he
said, but the concept is so complicated that "it will take time."

In May, five of the top six MSOs agreed to give the
nationwide-interconnect concept the go-ahead.

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