Cablevision Systems and Broadcasters Face Off on Fees.

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Published on Thursday, 23 September 2010 11:34

In most of 2010, the usually simple of TV contract negotiations in the United States has erupted into warfare with between TV broadcasters and channel owners against cable-TV and satellite-TV companies that bring programming into homes, via traditionally expensive cable and dish systems. Statistics show that ever-increasing subscription rates are pushing more and more subscribers to flee to IPTV offerings or even OTT.

It's seems the mantra we know as 'cutting the cord' could be having an effect on the negotiations.

Michelle Clancy from RapidTVNews Notes:

The content, particularly content from one of the four national networks, is simply table stakes for a cableco looking to stave off any competition, in any form. But that said, ever-increasing subscription rates are pushing more and more subscribers to flee to IPTV offerings or even OTT.

As we noted earlier this year, Reuters reported on the first-ever subscriber decline for the U.S. TV multichannel industry. Research firm SNL Kagan showed the worst combined subscriber performance of cable, satellite TV and telecom video providers since it started tracking data in the 1980s. 

And News Corp via Fox Broadcasting have decided to play hardball and began running ads last week addressed to the cable TV company's subscribers, saying if a new TV-rights deal isn't signed soon, viewers could lose Fox shows including football games and "Glee." They also launching the www.keepfoxon.com website.