Time Warner And Fox Settle Scuffle

Fox and TIme Warner Cable have settled a squabble over programming this past Friday afternoon. This was less than a day after the two companies' contract expired.

There were public attacks from both companies over the negotiations involving Fox-owned programming and the nation's second-largest cable operator, but they finally came to an agreement. Viewers will still be able to watch Fox shows, like the upcoming American Idol premiere, without having to find an alternative service, but cable prices may rise.

The increased cost comes from Fox requesting $1 per subscriber, arguing that advertisement revenue isn't enough to stay financially stable. In the past, the cable industry has avoided paying such fees because people can get broadcast TV over the air for free. The rebuttle is that most people won't subscribe to a cable service that doesn't include their favorite local TV stations, hence creating leverage for broadcast companies.

Time Warneer talked Fox down to around 50 cents per subscriber. In the meantime, lawmakers ensured that New Year's programming wouldn't be lost during the small hiatus of a contract by applying pressure for an extension.