KXAN Back On Time Warner

by: Matt Glazer

Wed Oct 29, 2008 at 08:32 AM CDT

Negotiations between the two major corporations (Time Warner and LIN-TV) broke down October 1, and since then, Time Warner has shown nothing but Starz Family to fill the programing gap.

Time Warner is the largest television provider in Austin which meant KXAN was no longer being piped into nearly 311,000 Austin homes.

We aren't sure the full details, but we will get them to you as soon as we can.  In the mean time, enjoy your favorite NBC programming again.

No More NBC on Time Warner Update

by: Matt Glazer

Sat Oct 04, 2008 at 00:13 PM CDT

First some updates.

Most of you realize now that KXAN is no longer on Time Warner.  The channel was removed Thursday night/ Friday Morning at midnight.  Immediately, Time Warner replaced the channel with a looping commercial promoting their new site thetruthhurtskxan.com.

Simmermon summed up the final hours of the negotiation with me.

Last night, we were negotiating pretty well with LIN TV. Or so we thought. We offered to work through the night to reach an agreement, and they refused, despite acknowledging progress in the negotiations. All we wanted was a short extension so we could complete the negotiations, but LIN TV preferred to pull the signal off the air, in a blatant disregard for their own viewers and advertisers.

On Wednesday I pointed out that a similar situation happened in Williamson County. When Williamson County lost KXAN from January until March until Suddenlink picked up the signal from Temple.  That's not a solution in this situation. Simmermon pointed out a crucial difference.

As much as we would like to substitute another station's feed for KXAN's, it is currently illegal for us to do that.

In other words, these two groups must negotiated a settlement or Time Warner subscribers will continue to miss out on the local NBC affiliate.

In addition to talking with us, Simmermon also took some time to talk with the Austinist about the negotiations.

Please explain why TWC believes that KXAN's programming is free and therefore not worth the "less than a penny per day per subscriber" that has been asked for.

Anyone with an antenna can plug it into their TV and see KXAN without spending a single red cent. We're the ones who take that signal, clarify it tomake the picture reliable and amplify it to reach many, many more people than KXAN could reach without us. Furthermore, Hulu.com and NBC.com show NBC's must-see programming like 30 Rock and The Office for free online. It's Bizarro-world economics to charge money for something that's available for free. Not unlike setting up a tent in one's backyard, charging admission and calling it an "oxygen booth."

Will TWC take KXAN's feed off of TWC's broadcast service tonight, as everyone has stated? If so, who is (physically) initiating the actual break?

By now this question has partially answered itself. But make no mistake: we did not take KXAN off the air. That was LIN's decision, not ours. Last night, we were negotiating pretty well with LIN TV. Or so we thought. We offered to work through the night to reach an agreement and they refused, despite acknowledging progress in the negotiations. All we wanted was a short extension so we could complete the negotiations, but LIN TV preferred to pull the signal off the air in a blatant disregard for their own viewers and advertisers.

On face this is a lose lose situation.  KXAN is losing advertising revenues, which is the revenue model for broadcast satiations, and Time Warner may start seeing people peel off to other cable providers, weakening its market share.

The general sentiment appears to be a "plague on both their houses".  What's your opinion?

No More NBC on Time Warner

by: Matt Glazer

Wed Oct 01, 2008 at 00:38 PM CDT

According to Austin360.com, "KXAN's corporate owner, and Time Warner are haggling over the station's retransmission contract, which expires at midnight Thursday. If an agreement is not reached - and both sides seem deeply entrenched in their opposing views - Cable Channel 4 will go dark, with a message from Time Warner that KXAN is not available."

The hiccup in negotiations is that Time Warner wants KXAN's products for free. KXAN wants Time Warner to pay less than a penny a day to pay for retransmission.

Austin360 says that KXAN's signal goes to 311,000 or so people in Austin. That means Time Warner is haggling over $1.14 million. Money  ($3.65 per person per year) Time Warner says it would be forced to pass on any additional cost to its subscribers.  

KSAT, a San Antonio station affiliated with ABC, is in a similar situation with Time Warner.

Eric Lassberg, General Manager of KXAN answered some questions over at the Austinist about this issue.

Our dispute is about fair and equitable treatment. Time Warner charges its cable subscribers a fee to provide KXAN-TV in its channel line-up. It also charges its cable subscribers a fee to provide cable networks, which cable subscribers may or may not watch. Time Warner shares that fee with the cable networks; however, it does not share that fee with us. In essence, it takes our signal for free and resells it for a profit.

He went further in an Austin360.com interview.

"Here's our frustration: Smaller cable operators and satellite companies are paying fair compensation for our signal. To pay us nothing is to say we bring nothing to the table, and we know that's not true," Lassberg said.

This isn't the first time this has happened either.  Williamson County lost KXAN from January until March until Suddenlink picked up the signal from Temple.

This is the sort of corporate squabbling that is irritating. The reality of it is simple. This is just a nuisance.  There are other options out there for the NBC die hards-- DirecTV satellite, Dish Network, AT&T U-verse, Suddenlink cable (where available), NBC.com, Hulu.com, and rabbit ears.

Time Warner will lose customers over this and allow some of their competitors to cut into their overwhelming Austin stranglehold.

On the other hand, Lassberg estimated about 50% of KXAN's viewers are Time Warner subscribers. If they lose half of their audience KXAN will be required to lower ad rates just to stay competitive.

The only way we will know for sure if an agreement has been made is by tuning in Thursday at midnight.