Fox, NCTC Reach Carriage Deal

[onenote]

Source: Multichannel News

Fox, NCTC Reach Carriage Deal
Agreement avoids blackout of Fox News, Fox Business, sports nets

The National Cable Television Cooperative said it has reached a carriage deal with Fox Corp., signing an agreement for a handful of cable networks hours after the official midnight deadline passed.

SNIP

The NCTC had warned that a deal might not be reached before the deadline, citing Fox’s demand for a rate increase the organization said was more than 10 times the current rate of inflation. But it appears that the parties, facing the midnight witching hour, were able to work out a compromise.

Read more: https://www.multichannel.com/news/fox-nctc-reach-carriage-deal

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The article doesn't indicate the terms of the "compromise" but if history is a guide, the cable folks probably ended up largely capitulating to Fox's demands by agreeing to pay a significantly higher fee for the Fox networks.

[Sherman A1]

1. As you mentioned

the cable companies probably capitulated to the almighty Faux.

[pwb]

2. Fox opinion talkers get paid too much.

Fox sports is what they want and they are forced to pay more for the talkers. IMO.

[onenote]

8. don't underestimate the popularity of Fox News

https://www.salon.com/2019/12/30/trump-sycophancy-pays-off-as-fox-news-earns-highest-ratings-in-networks-23-year-history/

[eppur_se_muova]

3. I still say FAUX should get pushed into the premium packages. If you want it, you pay extra.

Of course, this is exactly the opposite of what FAUX is pushing for -- they want to be added to basic cable lineup, with no opt-out for anybody, and they play hardball to get it.

One of these days, a strong enough cable operator will say, "No, it's the premium lineup or nothing". They'll probably lose FAUX, and quite likely do fine without them, particularly if they're in a blue state and/or heavily urban area. That will be the thin end of the wedge.

[onenote]

5. Losing both fox news and fox sports channels will result in many subscribers switching providers

The leverage is tilted towards the programmers in these negotiations since they face no competition while the cable/satellite companies compete with each other and subscribers will go where they can get the programming they want.

[eppur_se_muova]

6. It's not safe to assume sports coverage will be that big a deciding factor.

Lots of cable subscribers never -- literally, never -- watch sports, and resent paying extra for them, while those who like sports are fairly willing to pay extra for them. Check out these articles:

https://finance.yahoo.com/news/sports-no-savior-big-cable-162316117.html

https://www.consumerreports.org/streaming-media-players-services/most-cable-subscribers-would-dump-espn-to-save--8-a-month/

https://www.nytimes.com/2011/12/16/business/media/for-pay-tv-clients-a-steady-diet-of-sports.html

[onenote]

7. Increasingly it is.

Those subscribers that aren't interested in sports have been cutting the cord in droves. Cable companies of all sizes, including small and mid-sized companies, have been losing video customers. The ones that remain are more likely to actually care about sports than those who already left.

It doesn't take a lot of subscribers dropping or switching service for a cable or satellite distributor to take a hit, particularly if those customers find another provider that offers not only video, but also Internet connectivity. For each subscriber who pays $100/month or more for service (pretty much the average these days) departs, the distributor loses at least $1200 in cash flow. On top of the hit they've already taken due to cord cutting. And Fox doesn't lose that much because the subscribers that really want their programming will find another source and that source will be paying Fox (and keeping up the number of eyeballs for ad sales purposes).

Even many of the smaller and mid-sized operators have systems in more than one community and they cut their deals on a company wide basis, so the idea that they could target "blue" areas and thus minimize the hit doesn't really hold up. Plus, most communities are not exclusively "blue" or "red".

[csziggy]

4. And Sling streaming added Faux Noise on Dec 23

I'm pissed. I was already pissed that they carried The Blaze, News Max, and One America crap. Apparently they dropped One America and added Fox over the holiday season.

I just called them and asked about blocking individual stations. With satellite services and on PrismTV I could block individual stations but Sling can only block by ratings. I suggested they add the capability. Since other services do, I know it is possible.

Sling does say you can set up a personalized channel listing, but you have to select it every time you start Sling which is not convenient at all.

I am trying to research if YouTube TV allows me to pick what I want to show in my channel guide. If they do, I may change to YouTube TV - especially since they now carry PBS stations.