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False Statements from Hearst-Argyle in HD Dispute

Cox Communications is in a dispute with Hearst-Argyle over permission to distribute the high-definition signals of Hearst-Argyle TV stations to Cox’s cable customers in six markets. (Click here for an Omaha World-Herald article—free subscription required.) Basically, Hearst-Argyle pulled its HD signal from Cox Cable in these markets because Cox wouldn’t agree to its hefty demands for payment to carry the HD signals—the same content from Hearst-Argyle that customers receive in standard definition over the air for free. Hearst-Argyle also even offers the HD version of their content over the air for free. In our view, Hearst-Argyle is holding Cox customers hostage. Hearst-Argyle received broadcast spectrum free from the government but is in turn demanding an exorbitant fee from Cox and its customers. In defending its actions, Hearst-Argyle has made the false statement that Cox charges its customers for the broadcaster’s HD signals. That’s completely untrue. Cox does not charge for HD service. The only charge in these markets is a rental fee on the HD receiver needed to receive the signal which is allowable under FCC guidelines to help offset the $300-$500 cost per receiver that Cox incurs.

Posted on October 4, 2006 05:34 PM | Comments (0)

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