News Corp. struck a deal with Time Warner Cable to distribute its planned Fox Busienss News cable channel in the important New York market, according to this Financial Times article.
The deal greatly improves the chances of the channel launching in 2007, as New York is the most important market for business news because of the markets and investment bankers located there.
Joshua Chaffin wrote, “Under the agreement, Time Warner will pay News Corp 10-15 cents per subscriber for the right to carry the business channel, according to an executive briefed on the agreement.
“Although that rate is relatively low, the deal is vital because it will give Fox Business coverage in the New York market, where Time Warner’s 11m subscribers are concentrated â€“ something Rupert Murdoch, News Corp’s chief executive, had set as a precondition to the channel’s launch. In November, News Corp lined up a commitment from Comcast, the largest US cable operator, to carry the planned business network.
“Meanwhile, News Corp is also set to receive a windfall from Time Warner for Fox News. Beginning later this summer, the cable operator will begin to pay about 75 cents per subscriber as part of the new agreement. That amount is roughly three times what Time Warner paid a decade ago when its first agreed to carry Fox News, and similar to a deal agreed late last year by Cablevision.
“A Fox spokeswoman confirmed the deal, but declined to comment on its financial terms. Time Warner Cable did not immediately return a call for comment.”
Read more here.