Cablevision and Disney Reach Tentative Agreement
Posted by Jesse Ward on Monday, March 8, 2010 · 
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Cablevision and the Walt Disney Co. engaged in a very public battle this past weekend over retransmission fees. The two media giants reached a tentative truce yesterday evening, just after the start of the Oscars.
Early Sunday morning, Disney pulled its ABC station from Cablevision, a hard-line tactic intended to force Cablevision to negotiate and settle the contract dispute or risk stranding its three million cable customers in New York, New Jersey and Connecticut without access to the Academy Awards.
The two companies finally found some common ground at 8:44 p.m. Eastern time, the same time that the signal for the local ABC station was restored to Cablevision’s customers. The companies did not disclose the terms of the deal, although people familiar with the matter said the terms were still quite tentative.
ABC started by asking for up to $1 per subscriber a month for the right to transmit its local signal, though people briefed on the matter say that was a negotiating maneuver and the target price is closer to 60 cents a subscriber.
In separate statements, both sides heralded the end of the stalemate. Cablevision said: “We are very grateful to our customers for their support and pleased to welcome ABC back.”
Disney said the deal “recognizes the fair value of ABC7.”
This is the latest public battle between media giants and cable companies in regards to contract negotiations. Disney is under pressure to stand its ground: if it doesn’t win concessions from Cablevision it could set a precedent for future retransmission payment negotiations.
The New York Times reports.
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