Boston, MA 07/30/2014 (wallstreetpr) – The Federal Communication Commission has expressed its dissatisfaction on Time Warner Cable Inc. (NYSE:TWC) move to black-out Dodgers baseball games from all Los Angeles pay-tv customers. In a blistering letter, the FCC chairman, Rob Marcus, criticized Time Warner for failing to reach an agreement with other Pay-Tv distributors. The FCC in a statement has already stated that it will continue to watch the situation closely as it pushes for an amicable solution between the involved parties.
Time Warner Open to an Arbitration
Time warner owns exclusive rights to distribute SportsNet LA after signing a 25-year deal worth $8.35 billion with the team. Legislators have also weighed into the matter asking the companies to settle their disputes and end the suffering that has befallen customers in the recent past. Eight Democratic members of congress wrote to the FCC asking it to resolve the standoff.
Time Warner has emphasized in a statement that it is willing to enter into a binding arbitration with DirecTV although it always prefers to reach agreements through private business settlements. DirecTV is reportedly spearheading the negotiations that will go a long way to influence rates paid other networks such as AT&T Inc. (NYSE:T) and Charter Communications, Inc. (NASDAQ:CHTR).
The Importance of Sports Networks
Sports networks continue to be more important to TV networks and advertisers as the programs usually draw large audiences. AT&T may reportedly opt out of a deal to acquire DIRECTV (NASDAQ:DTV) if the satellite carrier fails to renew its NFL Sunday Ticket contract. The service allows customers to watch out of market football games.
Time warner has never disclosed what it seeks from distributors although people familiar with the matter claim Time Warner Cable Inc. (NYSE:TWC) is seeking about $4 a month per subscription in the first year of subscription. The figure will reportedly increase throughout the life of the deal. The FCC has instructed Time Warner to send it a letter detailing the arbitration process that it wants to pursue in the next 10 days.
