Fox, Time Warner Feud Could Black Out Cable Viewers

Dec. 29, 2009 — -- A bitter spat between Fox and Time Warner Cable could soon leave viewers around the country without the network's programs including January's NFL playoffs and "American Idol."

Fox and Time Warner Cable, the No. 2 U.S. cable operator, are in the midst of negotiating a fee contract which expires Dec. 31. News Corp., owner of channels such as Fox Broadcasting, FX and Fox Sports, is threatening to pull its programming from Time Warner subscribers if there's no fee deal. Time Warner, meanwhile, is fighting back with ads that accuse Fox of blackmail.

"Pay our price or you'll never see Fox again," reads a dramatic Time Warner Cable ad in ransom-style letters in newspapers around the country.

"No Fox? No Way," read News Corp.'s ads over a collage of pictures from its hit shows, including "NFL on Fox," "American Idol," "24," "House" and "The Simpsons."

News Corp. is reportedly asking for an increase of $1 per month per subscriber. With 13 million subscribers, this would hit Time Warner with a $13 million monthly rate hike. News Corp. didn't return calls from ABC News seeking comment, but Time Warner Cable said the hike would directly filter through to viewers.

"Fox's current demands are still unreasonable and excessive, especially in this economic climate," says Maureen Huff, a Time Warner Cable spokeswoman. "We hope Fox won't punish our customers by taking their programming away while we try to reach an agreement."

This latest outburst of hostility isn't the first salvo in the dispute. In November, Time Warner launched an ad campaign airing its grievances against programmers and asked viewers to vote on whether Time Warner should "roll over" and cough up the higher fees, or whether it should "get tough."

If Fox pulls its content in January, it wouldn't be the first time a programmer uses viewers -- who usually direct their anger at their cable company, not the content provider -- as a pawn in negotiations.

"It's an ongoing war. Distributors want as much of the money as possible, and the people who create the content want their share," said Carl Howe, director of media consumer research at the Yankee Group.