Sources inform ''Globes'' that Ted Turner’s Turner Broadcasting System Inc. (TBS), which owns the CNN, Cartoon Network, and Turner Classic Movies (TCM) cable stations, is threatening to take its channels way from HOT on December 1, unless the cable company pays its debt by the end of November. The sources added that another reason’s TBS’s threat of sanctions is that HOT is apparently considering the removal of TCM and Cartoon Network from its broadcasts. This measure, if it is to be carried out, is not yet official.
Due to a lengthy financial dispute with HOT, TBS’s London office recently notified HOT in writing that it had decided to settle the matter of HOT’s debt to TBS. TBS claims that HOT owes it $1.5 million; however, HOT claims that the debt is much less.
Sources also inform ''Globes'' that HOT recently paid TBS the amount that it believes it owes the latter. HOT said in response, “As it has done for the past 15 years, HOT regularly pays TBS large sums, in accordance with our contract, and will continue to do so. HOT has no debts related to CNN. All differences of opinion are being clarified directly.”
TBS said in response, “The company has demonstrated great patience concerning HOT’s accumulated debt for the three channels, which total millions of shekels. HOT’s behavior to date raises doubts about its credibility and willingness to honor its financial and contractual obligations. To our regret, as of now, a situation has been created that leaves TBS with no choice but to take the necessary measures to preserve its rights.”
Both HOT and YES satellite broadcaster air CNN, Cartoon Network, and TCM. CNN is part of the basic cable and satellite package, but Cartoon Network and TCM are available only on premium packages.
Published by Globes [online], Israel business news - www.globes.co.il - on November 10, 2005