The proposal, given in a letter to Sen. John Kerry yesterday, comes in response to Sen. Kerry’s suggestion of a binding arbitration and other measures to prevent service disruptions for customers in Time Warner Cable markets if the two sides can’t reach an agreement before their contract ends at midnight, Jan 1.
If the companies can't reach a deal before that deadline, Fox's signal could be pulled from Time Warner Cable's systems, leaving millions of customers around the country without access to popular programming, like National Football League playoff games, college bowl games and new seasons of shows like "American Idol" and "24."
Fox is looking to charge $1 per subscriber per month in return for its signal, an amount that would set a new precedent for the broadcast industry in its negotiations to receive subscription revenue from pay-TV operators. Time Warner Cable has indicated willingness to pay for Fox's signal, but the company has balked at the broadcaster's price.
News Corporation’s stock was down 15 cents, or .93 percent, to $16.02. Shares of Time Warner Cable were down 33 cents, or .78 percent, to $42.10.
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