Subscribers to Cable Could Lose Channel 4 Programs : Broadcasting: Local firms and NBC disagree over new federal laws, which allow networks to charge companies for their programming.
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Thousands of Ventura County cable subscribers could lose a major TV network Wednesday as the result of a showdown between local cable companies and NBC.
Exactly two years after Congress overrode a presidential veto of legislation to re-regulate the cable industry, local cable companies and NBC are wrestling over the new federal cable laws, which allow networks for the first time to charge cable companies for the right to carry their programs.
ABC, CBS and Fox have managed to make arrangements with all the major cable companies in Ventura County.
If agreements are not reached with NBC by the federal deadline of midnight tonight, county residents who depend on cable for television reception could lose Channel 4 programming, including such popular shows as “Seinfeld,” “Seaquest DSV,” “Law & Order,” the “Today” show, “The Tonight Show,” “Entertainment Tonight” and this year’s coverage of the Super Bowl, NBA finals and next summer’s Olympics.
As of Monday in Ventura County, only Jones Intercable, which serves Oxnard and Port Hueneme, and Entertainment Express, which serves part of Moorpark, had signed agreements with KNBC, the network’s Southern California affiliate.
Talks were stalled with Century Cable, which serves eastern portions of Ventura, after KNBC last week began running ads slamming the company for jeopardizing network access for nearly 300,000 subscribers in various communities across Southern California.
Century Cable responded by scrolling text over the ads, blaming the network for making unreasonable demands.
In exchange for the right to carry NBC, the cable companies are being asked to renew their subscriptions to CNBC cable news and business channel and carry a new NBC-owned cable talk show channel called America’s Talking, said Reed Manville, president and general manager of KNBC.
Cable companies that agree to the deal will not directly pay for the right to carry NBC. Instead, they will pay monthly subscription fees of around 30 cents per customer for each of the NBC-owned cable channels, Manville said.
On Monday, Century agreed to stop scrolling over the ads, but did not agree to carry the network.
Manville said he hoped agreements could still be reached with all of the cable companies.
“We have been reasonable and flexible from the beginning in trying to cut deals of all types,” Manville said. “But I have drawn the line in that I think everyone should pay something for my valuable signal.”
Bill Rosendahl, senior vice president of Century’s West Coast operations, was angered by KNBC’s demands.
“NBC are the ones that stirred this up, and they’re the ones who are being totally unreasonable,” Rosendahl said.
Negotiations were also stalled with Avenue Cable in Ventura and Falcon Cable in Thousand Oaks, Manville said.
Pam Drake, director of marketing at Avenue, said the company, a family-owned business that serves about 10,000 subscribers, could not afford to meet NBC’s demands.
“We don’t have the channel space and we don’t have the means to raise rates,” Drake said. “We’re talking hundreds of thousands of dollars a year.”
A spokesman for Falcon Cable could not be reached for comment.
Cablevision, the county’s largest cable company, was nearing an agreement with KNBC late Monday, said Cablevision President Dave La Rue.
“We’re very close,” La Rue said. “If everything continues to go well, we won’t have to take NBC off the air.”
Cablevision serves residents in Camarillo, Moorpark, Fillmore, Santa Paula, Thousand Oaks and Ojai.
Comcast, which serves cable subscribers in Simi Valley, was also close to an agreement with KNBC, Comcast General Manager Greg Mackney said.
“I don’t have a signed agreement in front of me, but we’re very optimistic,” Mackney said. “For the most part, we are willing to meet their demands and now we’re just working out the details.”
Other networks have had less difficulty working out arrangements with cable companies.
In order to carry ABC, the county’s seven major cable companies have all agreed to subscribe to ESPN II, an ABC-owned sports channel.
CBS last week offered cable companies a year extension in coming up with agreements to either pay for the rights to carry its signal or agree to subscribe to a new CBS-run cable TV channel.
And Fox has offered cable companies a three-month extension in negotiations.
Meanwhile, angry cable subscribers throughout the county were flooding cable companies with phone calls.
Cathy Morse, a nurse who subscribes to Century Cable, said she was planning to cancel her cable service to protest recent rate increases and the possible loss of NBC.
“I think it’s outrageous,” she said. “I’ve been calling Century every day and I still haven’t had a good answer as to why my rates went up and my service is going down.”
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