TW Gets Hearst-Argyle Retrans Extension

Cable World, May 1, 2000 by Mike Reynolds

The never-ending retransmission consent skirmishes between TW Cable and broadcasters ABC Television and Hearst-Argyle Television continue to boil.

Late last week, as a May 1 deadline approached, TWC agreed to a 60-day extension to carve a deal with Hearst-Argyle. But the company hadn't determined at press time whether it would accept a 24-day extension from ABC, TWC spokesman Mike Luftman said.

"We don't believe that short-term extensions are in our customers' best interests," Luftman said. "Besides that, ABC just gave Comcast a long-term extension which proves that, once again, Disney (ABC's parent) is treating Time Warner customers differently than other cable customers."

ABC sent a letter April 26 to TWC indicating it would continue to make its signal available through the end of the key broadcast TV sweeps periods, which ends May 24. TW wants the contract extended until year's-end while the two sides continue negotiating.

Clearly, having ABC-owned stations shut off in such TW markets as New York, Houston, Raleigh, N.C., Los Angeles and Toledo, Ohio, during this critical period for determining local ad rates would not sit well with Disney management. All told, ABC owns stations on TWC systems reaching more than 3.5 million viewers. TW could lose a significant number of customers if they can't get their ABC signal.

ABC has played hardball with TWC in the past, threatening to pull its owned-and-operated stations absent a new retransmission consent contract. Although ABC agrees to short-term renewals, an ABC spokesman said last week the company opposes any long-term extension. "TW wants to extend to the end of the year so they can get their merger with American Online Inc. approved," the ABC spokesman said. "They want to duck the issues of monopoly control and consumer access while their merger is pending."

Disney officials have been telling any Congressman who will listen that the AOL-TW union could result in them favoring their own content over other companies' offerings. TW executives say such talk is a negotiating ploy.

Meanwhile, TWC, which had asked for a six-month extension to Hearst-Argyle, agreed to a proposed extension set to expire June 30. Hearst-Argyle reached carriage pacts in April with Charter Communications Inc. and Cox Communications Inc. A Hearst-Argyle spokesman, citing confidentiality agreements, declined to comment on those deals' parameters.

K.C. Neel contributed to this report.