FCC Chairman To Fox & Cablevision: ‘Time For Petty Gamesmanship Is Over’
FCC Chairman Julius Genachowkski may want to lock the top execs of Cablevision (NYSE: CVC) and News Corp (NSDQ: NWS). in a room until they agree to a deal that puts Fox stations back on the air for 3 million subscribers but that’s not in his mandate. Tuesday afternoon he did the next best thing—at least for now; he got on the phone to urge News Corp COO Chase Carey and Cablevision CEO Jimmy Dolan to work it out. Then he went public with his frustration, chastising the two companies in a brief, but scathing statement:
“I am deeply troubled that Cablevision and Fox are spending more time attacking each other through ads and lobbyists than sitting down at the negotiating table. The time for petty gamesmanship is over. I have called the CEOs of both companies [Carey is actually COO and deputy chairman] and reiterated the importance of reaching a deal, as many companies have done before. I reminded the companies that they share responsibility for consumer disruption, and that they shouldn’t punish consumers because of their unwillingness to reach a deal. I also insisted that they negotiate in good faith. We will continue to scrutinize their actions very closely.”
(The FCC also live tweeted the baseball game as a “service” to consumers, providing a steady reminder of how frustrating something as simple as watching a game is for Cablevision fans without antennas.)
Negotiators for the two may actually have spent less time negotiating over the past two days than it takes for the AL to play a game. Tuesday they literally phoned it in, “a short phone call,” Fox mentioned in its statement. “No material progress was made and we remain far apart. Both sides agreed to continue talking tomorrow.” That statement accompanied a longish doc accusing the “Cablevision family” of hypocrisy for arguing against arbitration to resolve disputes. Cablevision’s CEO is the executive chairman of spin-off MSG, whose namesake networks have been off the air with Dish since Oct. 1 because the two can’t agree on terms. Fox has its own dispute with Dish; its regional sports nets and FX have been dark for the satellite operator’s subs through the same period.
But Cablevision continues to insist on binding arbitration with Fox, issuing another statement from Charles Schueler, EVP of communications: “Both parties have a position, but only Cablevision has joined with more than 50 government leaders with a solution, binding arbitration under the direction of a neutral third party.” No direct response yet to my query about Fox’s call out on the Dolans’ MSG arbitration stance.
Next for FCC?: What else can the FCC do? For now, not much more. Broadcast nets have gone off the air before during a dispute but this stretched into unprecedented over the weekend. At the very least, the situation has heightened—and likely hastened—calls for renstrans reform. Sen. John Kerry promises to introduce legislation that would give the FCC a real role in the process but that isn’t going to change this situation. (More on that from the LAT.)
While the agency considers its options for Cablevision and Fox, it’s also dealing with the merger review for Comcast (NSDQ: CMCSA) and NBC Universal (NYSE: GE). Questions about online access, content control and net neutrality have been asked throughout by the FCC, Congress and deal opponents. Fox’s actions over the weekend when it barred Cablevision ISP subs from Fox.com, and at the same time from Fox programming on Hulu.com, put the subject in an even brighter spotlight.
Update: In a separate statement this evening, MSG said it is “perfectly willing” to go to binding arbitration with Dish and that Fox has it all wrong. Fox replied quickly, calling it the first time MSG “has ever suggested being open to binding arbitration with DISH Network or anyone else. This position is totally inconsistent with their own filings to the FCC and inconsistent with their own actions in denying hundreds of thousands of viewers access to Knicks, Rangers, Nets and Devils games.”
Even though it probably would see its fees cut in arbitration, given that Dish is as likely as News Corp. to accept that as an answer, MSG and the Dolans might as well make the offer. Meanwhile, the redacted version of MSG’s argument against Dish’s request for a standstill order is pretty clear:
More as warranted.
Posted In: Entertainment, Sports, Legal, Regulatory, FCC, Media & Publishing, TV, Satellite, Companies, Best Buy, Cablevision, Disney, ABC, NBC Universal, News Corp., Fox, chase carey, james dolan, julius genachowski

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