Bloomberg News

Lin TV Says Charter Carriage Deal Likely Ends June 30 (Update1)

June 04, 2008

Lin TV Corp. (TVL:US) the Providence, Rhode Island-based operator of television stations, said cable operator Charter (CHTR:US) Communications Inc. may stop carrying its signals this month because the two sides couldn't agree on compensation.

Charter may stop broadcasting 11 Lin stations in cities including Dayton and Toledo, Ohio, after June 30, Lin said today in a statement. Lin said talks are continuing with St. Louis-based Charter.

TV station owners want pay-TV companies to compensate them for distributing free local programming to their subscribers. Lin said it has reached so-called retransmission consent agreements with cable companies including Cox Communications Inc. and satellite TV providers such as Dish Network Inc.

Charter subscribers who no longer receive the Lin stations are encouraged to use an antenna or a satellite service, Lin said in the statement. Lin and Dish Network agreed in March to a promotional deal that rebates $50 to TV viewers who switch from cable to Dish in the event of a service termination.

Lin lost (TVL:US) 13 cents, or 1.5 percent, to $8.75 at 11:24 a.m. in New York Stock Exchange composite trading. Charter fell 2 cents to $1.46 in Nasdaq Stock Market trading.

The 11 Lin stations include all of the major broadcast networks. Other markets affected by the agreement are Grand Rapids, Michigan; Green Bay, Wisconsin; Hartford and New Haven, Connecticut; Springfield, Massachusetts; and Providence.

To contact the reporter on this story: Lisa Wolfson in San Francisco at lwolfson@bloomberg.net

To contact the editor responsible for this story: Jennifer Sondag at jsondag@bloomberg.net


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