Time Warner: "Significant Progress" Toward Disney Deal

Source: Major issues have been resolved

By John Eggerton -- Broadcasting & Cable, 8/29/2010 7:58:41 PM

There were signs late Sunday that Time Warner and Disney were making progress toward resolution of their heated carriage negotiations over cable channels and TV stations.

That is according to a statement that was posted to the Web sites that each company set up to keep customers apprised of the situation and to lobby for their respective sides (http://www.ihavechoices.com/ and http://www.rolloverorgettough.com/)

"The Walt Disney Company and Time Warner Cable have made significant progress in our negotiations for continued distribution of ABC, Disney and ESPN networks and services," said the statement. "We are now focusing all our attention on a successful conclusion of these efforts prior to the Sept. 2 deadline."

"The major issues have been resolved," said a source familiar with Time Warner's side of the negotiations who asked to speak on background.

Time Warner is negotiating renewed carriage of Disney cable nets (prominently ESPN and Disney Channel) and several station retrans deals, including in the top two markets--New York and Los Angeles. The price of Disney Channel was said to be one of the sticking points.

Meanwhile, a spokesperson from Hallmark Channel said late Sunday there was "no news" to report on the carriage impasse with AT&T's U-verse over its carriage of the Hallmark movie channels. The deadline for that deal is Aug. 31.

According to Hallmark, AT&T has advised its customers that it may be dropping the channels Aug. 31. Hallmark says it is willing to grant an extension so the channels remain on U-verse beyond the Aug. 31 date.

An FCC source confirmed last week that the commission is "being kept informed" about carriage negotiations between the two as the clock ticks down to a Sept. 2 deadline. Time Warner was one of the lead companies on a petition to the FCC to step in and "fix" the retransmission consent process, including preventing TV stations from taking down their signals during retrans impasses after their carriage contracts expire but before deals have been struck.