$1 a subscriber reasonable: Fox chief

Fox Network's top executive said asking Time Warner Cable to pay $1 (Dh3.67) per subscriber for the right to carry the Fox Broadcast network is reasonable and suggested that other networks such as CBS Corp would ask for similar fees in the future.

Tony Vinciquerra, Chief Executive of News Corp's Fox Networks Group, said the future of the broadcast TV business depends on getting fair value for the investments it makes in high-end entertainment and sports programmes like American Idol and NFL football games.

Fox is in 11th-hour talks with Time Warner Cable, the second largest US cable operator, to negotiate a monthly subscriber fee for the right to carry the free-to-air broadcast network.

"If we end up at $1, I think that's a reasonable step on getting to the right value for a broadcast network," said Vinciquerra in an interview.

Time Warner Cable has previously described Fox's demands as "unreasonable" and company insiders privately point to agreements with smaller affiliate broadcast companies that have signed carriage deals for around 20 to 25 cents as a good starting point.

CBS Corp CEO Les Moonves, who runs the overall top-rated broadcast network CBS, has also been vocal about demanding that cable and satellite companies pay cash for so-called retransmission rights. But he has publicly talked about negotiating around 50 cents from cable providers.

Vinciquerra would not comment on CBS's past negotiations, but he said: "I'm sure if you asked Les does he think 50 cents is the right number now he would say 'no'. I think in the future he will ask for more."

The TV industry veteran said after months of "positioning and posturing" both sides are now getting into "heavy duty negotiations".

The current contract between the two sides ends on midnight Thursday. If an agreement is not reached by then Fox could go off the air in major Time Warner Cable markets such as New York City, Los Angeles, Dallas and Orlando. Time Warner Cable is also negotiating on behalf of privately held Bright House Networks and the total number of households affected could top 13 million, according to Fox. Vinciquerra said it is very likely that the negotiations would go right down to the wire.

"The only way you walk away from the table getting as much as you can is by facing it down at the last moment," he said.

Both sides have launched aggressive PR and marketing campaigns claiming the other party is making unreasonable demands. Time Warner Cable has claimed some programming partners are demanding 300 per cent increases and that it would be forced to pass on the cost increases to its subscribers.

Fox for its part claims Time Warner Cable would increase customers' bills regardless of whether programmers raise their fees.

Broadcast networks such as Fox and CBS have relied solely on advertising for revenue. Now they want to mimic the business model of cable networks like FX and Time Warner's CNN, which earn money from ads and subscriber fees. 

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