Showdown between KWTX, Time Warner looming

cablewithaview · #1 (**permalink**) 01-21-2006, 08:52 PM

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A showdown between CBS affiliate KWTX-TV, Channel 10, and Time Warner Cable may affect Time Warner's high-definition television customers and its UPN fans at the stroke of midnight Sunday.

That's when Time Warner's rights to the network, home to such programs as "Veronica Mars" and "Everyone Hates Chris," transfer to KWTX, which launches a new digital channel, UPN-Waco, on Monday.

UPN-Waco, available over the air on digital channel KWTX-DT 10.2, will offer around-the-clock programming, will add syndicated series like "Will & Grace," "Seinfeld," "Fear Factor" and a 9 p.m. weeknight rebroadcast of "Oprah!" to its prime time UPN programs.

A dispute over where that new channel will appear on Time Warner's lineup - whether on UPN's present location on Time Warner's basic tier or on a pricier, less-viewed digital tier - has threatened Central Texas' largest cable provider with the possible loss of CBS' high definition programming.

Under Federal Communications Commission rules, a cable company must have the permission of local television providers to retransmit their signals.

That permission, called retransmission consent, expired in 2004 between KWTX and Time Warner. Since then, the two parties have agreed to extensions to negotiate the details of a new retransmission consent, said Rich Adams, KWTX general manager and regional vice president of Gray Television, Inc., KWTX's Atlanta-based owner.

Those talks have become more contentious in the weeks preceding the Jan. 22 expiration of Time Warner's rights to UPN.

In addition to the UPN question, the two parties haven't agreed on other issues such as Time Warner's request to tape and store all KWTX local programming for use by its Video On Demand customers, Adams said.

"Time Warner had a different business plan and we thought they were trying to run our business," Adams said.

Time Warner's regional manager Johnny Mankin declined to discuss any issues in the negotiations.

Adams says the cable company already has his station's retransmission consent, granted in a Jan. 11 letter to Mankin.

That letter gives retransmission consent to the cable company provided Time Warner carries KWTX-DT 10.1, Channel 10's digital signal, on its current location on Time Warner Cable Channel 802 and KWTX-DT 10.2 (UPN-Waco) on Time Warner Cable Channel 15 or 16.

Time Warner has broadcast UPN programs on its Channel 15 for the last three years, the rest of the channel dedicated to promotion of Time Warner cable services, explanation of its offerings, occasional sports or public affairs programs and "leased access material" - infomercials and other paid programs.

In a letter dated Jan. 18, Mankin accepted KWTX's consent and said the company had reserved a digital, not analog, channel for UPN. "As we have described on numerous occasions, our analog channel lineup is currently without space for additional full-time networks," he wrote.

Digital television employs a different system of processing video and audio information for broadcast than analog television, using the binary 0's and 1's of computer operations. Digital signals allow distinctively better television pictures and sound, multiple channels of programming and interactive services, but require special televisions or converter boxes.

Exactly what happens after midnight Sunday is anyone's guess. As of Friday, Time Warner had announced its intention to continue rebroadcasting the CBS HD channel unless KWTX barred it in writing.

KWTX's Adams says that won't happen. He's already given the cable company permission and he considers the ball in Time Warner's court.

Grande Communications, Time Warner's smaller cable-internet-and-phone competition in Central Texas, will carry UPN-Waco on its basic service tier, Cable Channel 15, as well as CBS HD programming on Cable Channel 402, said General Manager Matt Rohre.

Both KWTX and Time Warner Cable are pitching their cause as serving Time Warner cable customers the best.

For KWTX, Time Warner's offer to move UPN-Waco to a digital tier channel will deprive the company's approximately 70,000 analog subscribers from the new channel's programming - unless they cough up an additional $9.50 monthly to subscribe to digital television.

For Time Warner, the loss of CBS' HD programming - prime time shows such as "CSI," "CSI: Miami," "60 Minutes" and "Late Night With David Letterman" plus sports events such as the NCAA basketball tournament - would create the biggest impact to subscribers.

"Our main concern is continuing high definition CBS programming to our customers," said Stacy Schmitt, vice president of public affairs for Time Warner Cable Waco.

Approximately 7,000 out of Time Warner's roughly 110,000 cable customers subscribe to its high definition service, Mankin said. Those 7,000 customers, however, subscribe at the company's highest level of service, spending $4.95 per month in addition to the cost of digital service.

Left unsaid by either party is the disputed UPN channel as a revenue source. For KWTX, the 24-7 channel will provide plenty of commercial air time to sell and it would like Time Warner Cable's 70,000 analog customers.

In addition to UPN programs on weekday nights, Time Warner Cable uses its Channel 15 for Time Warner promotion, contractual public affairs programs - and paid programming.

Adams argues Time Warner has found space on its basic analog tier for three channels - KXXV, Telemundo and News 25 Weather - provided by ABC affiliate KXXV.

"We're just asking for equal treatment and don't think this is unreasonable," Adams said.

But KXXV general manager Mike Lee points out that the weather channel is meant as a service for Time Warner Cable subscribers and has no stand-alone broadcast signal. As for the Spanish-language Telemundo, that channel was carried by Time Warner before KXXV acquired its local broadcast rights, he added. And a new, local digital weather channel comes online next month. NBC affiliate KCEN-TV, Channel 6, will debut its Weather Plus, a 24-hour weather network built by participating NBC affiliates across the country, on Feb. 27 after the Winter Olympics, said general manager Randy Odil.

Will the impasse with KWTX lead Time Warner to seek CBS HD programming from another source if it can't reach an agreement with the Central Texas station?

"I just remain positive that something will happen where we can work things out," Mankin said. "We are doing everything possible to avoid (losing the CBS programming)."

http://www.wacotrib.com/news/content...svc=7&cxcat=11

cablewithaview · #2 (**permalink**) 01-23-2006, 10:46 PM

Waco-area subscribers to Time Warner Cable's high definition television service saw programming from Dallas CBS affiliate KTVT-TV replace that of Waco station KWTX-TV this morning.

In Killeen and Temple, Time Warner's HD customers found Austin CBS affiliate KEYE instead.

The switch in HD programming comes as the latest salvo in a dispute between KWTX and Time Warner Cable over KWTX's new digital station, UPN-Waco, and its location on Time Warner's programming tiers.

KWTX wants UPN-Waco, which debuts at 6 p.m. today, on Cable Channel 15 or 16, for the cable company's analog, or nondigital, subscribers.

Time Warner counters that the company has no room for a new 24-hour analog channel and wants UPN-Waco as a digital channel, which would require interested Time Warner analog customers to upgrade to the more expensive service.

Roughly 70,000 of Time Warner Cable's more than 110,000 customers in Waco, Temple and Killeen subscribe to its analog television services; about 7,000 of the company's digital customers are HD subscribers.

Stacy Schmitt, vice president of public affairs for Time Warner Cable Waco, said her company substituted the out-of-market high definition television signals shortly after midnight Monday to keep subscribers provided with CBS HD fare.

"These stations have been in our market before," she explained. "As long as our customers have high definition CBS programming, we're satisfied. This fills that void."

Rich Adams, KWTX general manager and regional vice president of Gray Television, Inc., doubted Time Warner's action would clear scrutiny either at the Federal Communications Commission or CBS corporate headquarters.

"We were notified of the carriage (of the out-of-market signals) this morning. That got the ball rolling and questions are being asked at the FCC and CBS," he said. "We're in the process of gathering information on the corporate level what the rules at the FCC say. If Time Warner Cable is in compliance, so be it."

And if not? "The appropriate regulatory agency will take action," he added.

Time Warner Cable Division President Johnny Mankin said Time Warner officials made sure the company's use of out-of-market signals was permissible before taking that action. “We checked our sources, too,” he said.

http://www.wacotrib.com/news/content...svc=7&cxcat=11

cablewithaview · #3 (**permalink**) 01-31-2006, 01:23 AM

VIDEO KWTX General Manager Rich Adams On KWTX-Time Warner Situation

Click Here: http://www.wacotrib.com/news/content...1/cabletv.html
To Read 01.21.06 Waco Tribune-Herald Article On The KWTX-Time Warner Situation

VIDEO Time Warner Customers Could Lose KWTX HD Programming

Update

Time Warner Cable has notified KWTX-TV it will discontinue carriage of all KWTX-DT high definition programming as of midnight Sunday Jan 22.

Time Warner may also decide to no longer provide the popular UPN programming that has been available as part of the company’s basic and standard analog packages for the last three years.

In a letter to KWTX dated Jan. 20, Time Warner claims KWTX “rejected our offer to continue carrying KWTX-DT and said “without your written consent, we cannot legally carry the signal of KWTX-DT on Time Warner Cable's systems in Waco, Temple and Killeen."

Click To Read The Letter: http://media.graytvinc.com/documents...se+1.20.06.pdf

That is simply untrue.

"I find it utterly astounding that after granting permission to carry our digital signals to Time Warner Cable no fewer than two times in the last 10 days, Time Warner Cable knowingly falsely charges that KWTX is taking away CBS HD programming and that we have rejected their offer to continue carrying KWTX-DT", said KWTX General Manager Rich Adams.

The truth is on this web site in the letter exchanges between TWC and KWTX (see below).

The truth is this: "Time Warner Cable has made its decision - it has elected not to carry KWTX-DT, CBS High Definition and KWTX-DT UPN signals, even though it has KWTX's permission to do so, " said Adams.

"The matter now is really between TWC and its subscribers," said Adams. Although we've done all we can do to this point, I remain ready to talk to TWC at any time to work through this impasse."

KWTX has not threatened to pull any of its programming from any cable operator.

KWTX has not prohibited Time Warner Cable from broadcasting KWTX-DT on channel 802.

In fact, KWTX has granted permission to Time Warner Cable and every other cable provider in Central Texas to carry all of its programming, both analog and digital, free of charge.

Time Warner also says “KWTX has not signed the agreement which allows Time Warner Cable to air CBS high definition programming.”

That’s not true and we want to set the record straight.

The law does not require KWTX to sign an agreement. Instead it requires KWTX to negotiate with cable providers for carriage of broadcast signals. These negotiations may result in a simple grant of permission to carry the broadcast signals by the cable company, and that’s what has happened with Time Warner Cable and KWTX.

Neither Time Warner Cable nor KWTX has signed any agreement, but KWTX has granted Time Warner Cable permission to carry its programming.

It’s solely up to Time Warner whether to do that.

KWTX cannot compel Time Warner to carry its digital signals.

Here are the facts:

*In October 2005, Viacom selected KWTX-DT for the UPN affiliation for Waco, Temple and Killeen, after choosing not to renew its contract with Time Warner, which supplied customers with two-hours of nightly UPN prime time programming as part of its low-cost basic tier, as well as its standard tier.

*On Monday Jan. 23, UPN-Waco will go on the air as a full-power, 24-hour-a-day commercial digital station. With the launch of UPN-Waco, KWTX will provide three streams of programming: KWTX Analog, Channel 10; KWTX-DT Channel 10.1, and UPN (KWTX-DT Channel 10.2).

*In preparation for the launch, KWTX sent Time Warner Cable a letter on Jan. 11 granting the cable company permission to continue to carry high definition programming from KWTX-DT Channel 10-.1 on its digital tier at no charge through Dec. 31, 2008.

Click To Read The Letter: http://media.graytvinc.com/documents/kwtx_letter.pdf

*In the same letter, KWTX also granted Time Warner Cable permission to carry 24-hour-a-day programming at no charge from UPN-Waco (KWTX-DT Channel 10.2) on its basic and standard analog tiers, just as the company has done for the past three years.

*KWTX granted the same permission to every other cable provider in the Central Texas market, and every provider except for Time Warner willingly placed the programs on their cable lineups.

*Instead, Time Warner said in a letter dated Jan. 18 that while it wants to continue to carry high definition programming from KWTX and CBS on its digital tier, there is no longer space on its basic or standard tiers for the UPN programming it has offered as part of its basic and standard analog packages for the past three years.

*Without authorization, Time Warner modified the terms of the permission granted by KWTX and said it would provide UPN programming only as part of its more expensive digital service. By unilaterally modifying the agreement, Time Warner effectively rejected the permission granted by KWTX to carry not only UPN programming, but also high definition programming from KWTX and CBS.

Click To Read The Letter: http://media.graytvinc.com/documents...r_response.pdf

*KWTX, in a letter dated Jan. 20, reiterated its grant of permission to Time Warner to continue to carry high definition programming from KWTX and CBS on the digital cable tier and UPN-Waco programming on its basic and standard analog tiers, just as it has for the past three years.

Click Here To Read The Letter: http://media.graytvinc.com/documents/kwtx_response1.pdf

*Time Warner’s response the same day, as noted above, falsely charges that KWTX is taking away CBS HD programming and that KWTX has rejected Time Warner’s offer to continue carrying KWTX-DT",

Click To Read The Letter: http://media.graytvinc.com/documents...se+1.20.06.pdf

What Does This Mean To You?

After providing two hours of nightly UPN programming to basic and analog subscribers for the last three years, Time Warner Cable now says it does not want to include the 24-hour-a-day programming of UPN-Waco as part of its basic service package, which means that 70,000 basic and standard analog subscribers who now enjoy UPN programming will no longer be able to view the expanded programming on UPN-Waco on Time Warner Cable without paying more for digital service.

How much more? If you’re a basic cable subscriber, a lot more.

In Waco, the monthly charge for basic cable service is $10.50. In the Temple-Killeen area it’s $9.00. Digital service in Waco costs $45.45 a month and in the Temple-Killeen area the monthly charge is $53.45.

Standard analog subscribers in Waco would have to pay $9.50 more a month for digital service. Standard analog subscribers in the Temple-Killeen area would have to pay $8.50 more a month.

Click Here For Time Warner's Waco Pricing: http://www.timewarnercable.com/waco/...rice/waco.html

Click Here For Time Warner’s Temple-Killeen Pricing: http://www.timewarnercable.com/waco/...ce/temple.html

We don’t think 70,000 Time Warner subscribers should have to pay more—significantly more—for access to UPN programming, which we are offering to provide absolutely free of charge to Time Warner Cable.

And that’s why we’re standing firm.

We simply want Time Warner Cable to continue to provide its customers with the same access to UPN programs and quality high definition programming from KWTX, and CBS as it has for the last three years.

What’s On UPN-Waco?

VIDEO UPN-Waco Preview

Click Here For UPN Waco Web Site: http://www.upnwaco.com/

UPN-Waco offers round-the-clock programming seven days a week, including UPN’s popular prime time programs from 7pm – 9pm, Monday through Friday, “One on One,” “Girlfriends,” WWE Friday Night Smackdown, “Veronica Mars” and “Everybody Hates Chris.” Daytime television’s #1 program “OPRAH!” with television’s most popular star Oprah Winfrey, will air in the 9 – 10pm slot, Monday through Friday.

Family-friendly morning programming includes the popular “Jack Hanna’s Animal World” followed by “Brady Bunch,” “Andy Griffith,” “I Love Lucy” and “Little House on the Prairie.”

In the afternoon, the dramas “Matlock” and “In the Heat of the Night” are followed by comedies “Sanford & Son,” “Good Times,” “The Nanny,” “Mad About You,” “Martin,” “Jamie Foxx,” “The Parkers,” “Girlfriends,” “Fresh Prince of Bel-Air” and “Living Single.”

Late-night programming beginning at 10:00p.m. Monday through Friday, includes “Will & Grace,” “Seinfeld,” “Blind Date” and “Fear Factor.”

What do I need to know as a Time Warner subscriber?

Question:
I’m a Time Warner Cable Customer. Where will I find UPN programming on Monday, January 23?
Answer:
Time Warner Cable has permission from KWTX to carry UPN programming effective Monday, January 23, for 3 years. It is up to Time Warner to carry or not to carry this programming. They have our permission. We hope they will carry UPN on their analog cable tier on channel 15 or 16.

Question:
I’m a Time Warner ANALOG Cable Customer. What will happen in KWTX on Tim
Warner Cable on or after Monday, January 23?
Answer:
Nothing. If you are a Time Warner Cable analog customer, the KWTX, Channel programming will be unaffected.

Question:
I’m a Time Warner DIGITAL cable customer. What will happen to KWTX on Time Warner Cable’s digital tier and will I be able to see UPN on the TWC Digital tier??
Answer:
Time Warner Cable Has KWTX’s permission to carry both our digital program Streams, 10.1 CBS and 10.2 UPN. Time Warner Cable must decide whether to carry these channels in the same way they have been carried the past 3 years. Time Warner may decide not to carry
KWTX’s digital channels in this manner and if TWC doesn’t, of course they won’t be available to you to see on TWC.
If TWC decides not to carry our digital signals, that means that CBS’ High Definition programming will unavailable to TWC customers.
We cannot compel TWC to carry our digital signals.
Question
Can Time Warner Cable import a distant UPN signal and place it on their cable system?
Answer
No, Time Warner Cable is prevented by FCC rules from importing distant signals from out of mark UPN affiliates.

Question:
What can I do?
Answer:
It is our belief the only voice Time Warner Cable responds to is that of its subscribers. Call or write your cable company and ask that they carry KWTX-DT CBS and UPN in the manner they’ve been carried the past 3 years.

Click Here For Time Warner Cable Web Site: http://www.timewarnercable.com/waco/

Phone Numbers
Waco:
254-776-1141
Temple:
254-778-4201
Killeen:
254-634-3145

http://www.kwtx.com/unclassified/2233117.html

cablewithaview · #4 (**permalink**) 02-08-2006, 09:42 AM

KWTX-DT CBS-HD/UPN

What happened?

* Time Warner Cable’s agreement to carry KWTX’s HD signal expired at midnight, Sunday night. KWTX refused to allow us to continue carrying its signal despite our best efforts to negotiate a new agreement.
* Both the local ABC and NBC affiliates have renewed their retransmission agreements with Time Warner Cable without hesitation.

Why did this happen?

* KWTX was using its CBS high definition programming as leverage to get carriage for its new UPN station on our basic channel line up.
* Historically, we had carried two hours of prime-time UPN programming. KWTX is starting a new full-time station affiliated with UPN.
* This new channel does not contain any new programming; for the most part it consists of repeated syndicated programs.

KWTX states they have given you permission to carry both the CBS digital signal and the new UPN digital signal.

* This is not an accurate statement, KWTX is now broadcasting the UPN programming as a digital signal, yet they are demanding that it be carried on our basic (analog) channel line up.
* The digital transition is on the horizon; our company has made the investment to provide quality digital programming. Taking a digital signal (UPN) and downgrading back to analog would take more time and money and yield a lower quality product.
* We have reserved a channel slot on our digital line up for UPN should KWTX choose to make this programming available again to our customers.

Why do we now have Austin and Dallas CBS stations?

* We recognize the value of CBS programming in high definition and we did not want KWTX’s actions to affect our customers.
* We have put forth extra time and expense at no charge to customers to ensure our customers continue to receive this programming.
* We have imported KTVT from Dallas for our Waco area subscribers and KEYE from Austin for our Temple and Killeen area subscribers.
* We are comfortable that we have the necessary rights under our agreements to carry this out of area programming.

What will happen to KWTX CBS channel 2 (analog) programming?

* The CBS programming on channel 2 will remain the same.

What are your customers saying?

* The few calls we have received are obviously upset at KWTX’s decision to pull their high definition programming from them, but they are pleased to learn they will not lose any CBS high definition programming.

Why is Time Warner Cable no longer carrying any UPN programming?

* On November 11, UPN notified us that effective January 23, 2006, it would no longer authorize us to carry the two hours of unique UPN programming we had carried on either basic or digital cable.
* For three years, Time Warner Cable had carried two hours a night of UPN programming on a “local origination” channel as a part of our basic cable package. That local origination channel continues to provide local programming.
* We will replace the two hours of programming UPN has left vacant with quality, family friendly programs.
* We are disappointed UPN chose to withdraw permission for us to broadcast their signal on our basic cable.
* Customers were notified in December via bill messaging and a crawl, so this is not new news.
* We have reserved a channel slot on our digital channel line up for UPN should they choose to make its programming available again to our customers.

For additional information, please see our latest press release. http://www.timewarnercable.com/Inves...922&MarketID=2

Please return here for additional information as it develops.

Knowing KWTX's actions would negatively affect our customers, we have secured CBS HD programming from KEYE-DT (Austin) for our Temple / Killeen subscribers on channel 802 and KTVT-DT (Dallas) for Waco area customers on channel 802.

* KEYE-DT CBS PROGRAMMING http://keyetv.com/programming
* KTVT-DT CBS PROGRAMMING http://cbs11tv.com/programming

http://www.timewarnercable.com/waco/...g/kwtx-dt.html