Disney's Iger and Cablevision's Dolan may each hav
Disney's Iger and Cablevision's Dolan may each have reason to chug Champagne
Disney's Iger and Cablevision's Dolan may each have reason to chug Champagne
So should Disney President Bob Iger be popping the Champagne PVC coversthis morning, or is it Cablevision Chief Executive Jim Dolan who is celebrating over the new deal #xbetween the companies regarding carriage of WABC-TV New York?
That depends on who's doing the spinning. At issue were fees that Disney wanted Cablevision to pay to carry WABC-TV on its cable systems that serve 3.1 million homes in the New York City region. Disney's initial ask, Cablevision said, was $1 dollar per-subscriber, per-month for the channel. Disney said that figure was false but did not elaborate on what in fact it was seeking. Disney pulled the WABC-TV signal from Cablevision early Sunday morning and restored shortly after its telecast of the Academy Awards began.
When the dust settles, Disney will be getting more money from Cablevision, but not as much as it wanted. Terms of the tentative deal were not disclosed and there were differences of opinion of the value of the contractPVC covers. One person familiar with the pact said it came out to about 55 cents to 65 cents per subscriber; another said the figure was closer to 27 cents to 37 cents. Neither person was authorized to discuss the details of the agreement.
But the new agreement may be even more complex and could include other cable networks that Disney owns, including ESPN and ABC Family, according to an industry observer with lots of experience in these deals. It'll be up to the accountants of both companies to figure out the value being assigned to WABC-TV.
In terms of public relations,japanese swords, both companies took a lot of heat from consumers and politicians. While the cable company usually takes a beating in these battles, Cablevision was effective in spreading the word that it already pays Disney some $200 million annually for its content and was resisting a request for an additional $40 million a year. Disney tried to position this as a battle of David vs. Goliath#x, putting WABC-TV President Rebecca Campbell on the front lines of the fight, even though the folks PVC coversoverseeing the negotiations were Iger and Disney TV chiefs Anne Sweeney and George Bodenheimer.
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