The dispute involves how much Time Warner should pay Disney for carrying its cable channels. But it also touches on larger issues dealing with the distribution of news and entertainment programming, including the longstanding antipathy between the cable and broadcast industry, the growing competition between cable and satellite companies and Disney's opposition to the proposed merger between America Online and Time Warner.
Time Warner Cable removed ABC stations …show more content…
In a statement yesterday the commission encouraged the companies to resolve the issue privately.
There are currently no talks between Disney and Time Warner.
Both sides acknowledged they could be damaged by the impasse. Disney stands to lose advertising revenue and the opportunity to show its most anticipated programming, including the Kentucky Derby this weekend and the season finale of many of its series. Time Warner risks alienating its customers at a time when satellite distribution is growing and giving fodder to those who are arguing in Washington that the America Online-Time Warner merger would concentrate too much power in one company.
Even the extension issue involved the merger, with Time Warner demanding a bargaining deadline for eight months from now -- presumably after federal regulators had already acted on the AOL deal. Disney had wanted the shorter 24-day extension, presumably to retain the merger issue as leverage in the talks.
Both sides worked furiously yesterday to present their case to the public. On the channels where it had been carrying ABC, Time Warner posted the message, ''Disney has taken ABC away from you.'' A Time Warner spokesman said the company was under legal obligation to pull ABC's signals because no agreement was in place and Disney had failed to negotiate