3.1M Customers Face Oscar Night Without Broadcast

NEW YORK (AP) - Millions of cable subscribers faced the prospect
of Oscar night without the Academy Awards broadcast Sunday after
ABC's parent company switched off its signal to Cablevision
customers and the two companies blasted each other for failing to
reach a deal in a dispute over fees.
      In dueling statements dispatched early Sunday, the two companies
traded blame for the stalemate ahead of one of the most-watched
nights of television.
      "Cablevision has once again betrayed its subscribers," said
Charissa Gilmore, a spokeswoman for the Walt Disney Co. and ABC
Television Group, in a statement. "Cablevision pocketed almost $8
billion last year, and now customers aren't getting what they pay
for ... again."
      Cablevision Systems Corp. said the stall in negotiations should
be blamed on Disney CEO Bob Iger. "It is now painfully clear to
millions of New York area households that Disney CEO Bob Iger will
hold his own ABC viewers hostage in order to extract $40 million in
new fees from Cablevision," said Charles Schueler, a Cablevision
executive vice president, in a statement.
      The signal can still be pulled from the air for free with an
antenna and a new TV or digital converter box.
      Cablevision has argued that Disney is seeking an additional $40
million a year in new fees, even though the company pays more than
$200 million a year to Disney.
      Disney counters by arguing that Cablevision charges customers
$18 per month for basic broadcast signals but does not pass on any
payment for ABC to Disney.
      The dispute is similar to a standoff at the end of last year
between News Corp. and Time Warner Cable over how much Fox
television station signals were worth. That tussle, which
threatened the college football bowl season and new episodes of
"The Simpsons," was resolved without a signal interruption.
      Cablevision also feuded with Scripps Networks Interactive Inc.
in a January dispute that temporarily forced the Food Network and
HGTV off the service. Neither side provided terms of an agreement
that restored the channels after three weeks.
      Disney and Cablevision have been airing dueling advertisements
about the ongoing dispute for the past week. Also, lawmakers in
Washington have chimed in, suggesting the Federal Communications
Commission step in.
      The company's previous contract with Cablevision expired more
than two years ago, but it was extended month by month as talks
continued.
      Under previous arrangements, Disney was paid for cable channels
such as ESPN and Disney Channel, but gave its ABC broadcast signal
away for free, a situation that most broadcasters are now trying to
change.
      "We can no longer sit back and allow Cablevision to use our
shows for free while they continue to charge their customers for
them," WABC-TV president and general manager Rebecca Campbell said
in a statement.
      Schueler suggested that disgruntled viewers should blame
Disney's top executive if the station goes dark.
      "There is one man who is going to decide whether New York gets
to see the Oscars, and that's Disney President and CEO Bob Iger,"
he said in a statement late Friday. "We call on Bob Iger to stop
holding his own viewers hostage, end his threats to pull the plug
on ABC at midnight and instead work with us to reach a fair
agreement."
      WABC-TV is the most-watched TV station in the country, said
Disney, which is based in Burbank, Calif.

      (Copyright 2010 by The Associated Press.  All Rights Reserved.)