Sinclair and Mediacom reach agreement
Mediacom and Sinclair Broadcasting have reached an agreement.
After a very intense campaign both parties have reaached a one year retransmission agreement.
Involved in this agreement is 22 stations owned by Sinclair Broadcasting, which includes WEAR TV-3, an ABC affiliate in Pensacola.
Without getting into specific numbers the agreement effected more than 600,000 unique Mediacom subscribers in 15 markets.
Mediacom has also agreed to drop its FCC complaint against Sinclair arguing that Sinclair had not negotiated in good faith.
“We are very happy with the outcome of the negotiations which includes an acceptable economic arrangement," said David Smith, President and Chief Executive Officer of Sinclair Broadcasting. " We are pleased that our viewers and Mediacom’s customers will continue to receive the important and popular programming carried on our stations such as the local news, sports, and network shows as CSI, American Idol and 24.”
Most contracts are for a three year period, but this is a one year agreement was reached between Sinclair and Mediacom.
"I think this has more to do with Sinclair and its agreements to affiliates like Fox network," said Mediacom's Tom Larsen, Vice President of Legal and Public Affairs. "That is what I am understanding, but Sinclair could explain that situation better themselves."
Additional terms of the agreement were not disclosed by either party, but reports during the negotiations had Sinclair Broadcasting seeking a 50-percent increase in its retransmission fee.
Larsen remained very optimistic during the negotiations that a deal would be worked out.
"I am an optimistic person," Larsen said. "Both parties took the holiday weekend off and on Monday came back to work and became very aggressive in getting a deal worked out."
During the negotiations Sinclair took a very aggressive stance in urging its supporters to switch due to the fear of losing the local channel.
Larsen doesn't feel this will effect Mediacom and it sets a tone if this does occur again.
"This was a means to increase leverage during negotiations," Larsen said. "The next time this occurs I think the consumer will be very lery of the message as it turned out to be a negotiation ploy."
Mediacom Communications is the nation's 7th largest cable television company and is one of the leading cable operators focused on serving the smaller cities and towns in the United States. Mediacom Communications offers a wide array of broadband products and services, including traditional video services, digital television, video-on-demand, digital video recorders, highdefinition television, high-speed Internet access and phone service.
Sinclair Broadcast Group, Inc., one of the largest and most diversified television broadcasting companies, owns and operates, programs or provides sales services to 58 television stations in 35 markets. It's division reaches approximately 22% of U.S. television households and is affiliated with all major networks. Sinclair owns equity interests in various non-broadcast related companies.
