http://www.hollywoodreporter.com/news/wpix-cablevision-tribune-dark-363431
WPIX and 3 Other Tribune Stations Go Dark on Cablevision Amid Dispute
Over Retrans Fees
by Kimberly Nordyke
UPDATED: The cable operator accuses Tribune of demanding fees that are
too high because of its parent company's financial woes, but Tribune
says it's asking for "less than a penny a day per subscriber."
Several Tribune Broadcasting stations, including WPIX-TV in New York,
went dark on Cablevision at midnight Thursday amid a dispute over
retransmission consent fees.
Other stations that were affected include CW affiliates WCCT, carried
in a small portion of Connecticut, and KWGN in Denver, which is
carried in some of Cablevision's Optimum West markets, as well as
MyNetwork affiliate WPHL in Philadelphia, available in a small portion
of New Jersey.
In a statement, Cablevision accused Tribune asking for retrans fees
that are too high because of parent Tribune Co.'s financial troubles.
"The bankrupt Tribune Co. and the hedge funds and banks that own it,
including Oaktree Capital Management, Angelo Gordon & Co. and others,
are trying to solve Tribune's financial problems on the backs of
Cablevision customers," Cablevision said. "Tribune and their hedge
fund owners are demanding tens of millions in new fees for WPIX and
other stations they own. They should stop their anti-consumer demands
and work productively to reach an agreement."
For its part, Tribune said it wasn't notified that Cablevision was
dropping its stations and that the move happened while the two
companies were in the middle of negotiations.
"Cablevison took this action despite our offer of an unconditional
extension of the current carriage agreement with no change in terms
while negotiations continued," Tribune said in a statement. "To be
clear, Tribune was willing to provide Cablevision subscribers access
to the valuable programming on these stations while working toward a
new agreement. Tribune never made any threat to withdraw these
stations or any demand that Cablevision remove them. Tribune makes a
substantial annual investment in local news, live sports and
high-quality entertainment programming. Cablevision has never
compensated Tribune for the retransmission of its local stations,
which are among the most highly watched channels on Cablevision's
lineups."
The company said it has proposed a new deal that would amount "to less
than a penny a day per subscriber," which is less than what
Cablevision pays to other "less well-watched channels."
Earlier this year, Tribune was embroiled in a similar dispute with
DirecTV that resulted in a four-day blackout of 23 TV stations and WGN
America on the satellite TV provider.
The Chicago-based Tribune Co. filed for bankruptcy in 2008, a year
after the company -- which owns 23 TV stations and several big
newspapers -- was purchased by financier Sam Zell in a $13 billion
leveraged buyout. In June, a Delaware bankruptcy judge approved a
restructuring plan for Tribune Co. to emerge from Chapter 11.