Fee Pressure Latest Threat to 'Old' Network TV Model?
Al Jazeera’s buyout of Current TV at a seemingly high valuation of $500 million triggered lots of discussion about the future of low-rated cable networks. The Current TV buyout was immediately greeted by an announcement from Time Warner Cable (NYSE:TWC) about dropping the service taking away 9 million subs. Time Warner Cable has been at the forefront of aggressive affiliate fee negotiations with low-rated cable networks. The multiple system operator (MSO) is leading the charge to reduce or eliminate affiliate fees for low-rated networks. The pressure at the bottom end of the ratings table – and the high end ...
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