Cable cos near agreement with Sony/Columbia

The cable companies currently pay Sony/Columbia $20 million a year to buy movies and TV series.

25 December 02 15:10, Aviva Krull

Sources inform “Globes” that the cable companies are close to an agreement with Sony/Columbia studios (formerly Columbia Tristar) to reduce the amount they pay for movies and television series by 30-40%. The most advanced negotiations, already on the verge of a compromise, are with the cable action channel, AXN.

The purchase contracts with Sony/Columbia are the cable companies’ largest with foreign content suppliers, estimated at $20 million a year for five years. The contracts with Warner Brothers are estimated at $18 million a year.

The cable companies reportedly want to reduce the cost of the purchase contract for movies and television series by 30%. They are making an effort to reduce the cost of the purchase contract for content for AXN by 40%, in exchange for extending the contract by three years.

AXN is one of the cable companies’ most expensive channels, costing over $0.50 per subscriber. AXN is included in the basic package, without an extra fee. The cable companies’ severe crisis with Warner Brothers has increased their need to reach an agreement with Sony/Columbia.

Golden Channels, which is handling the content purchase negotiations on behalf of the future merged cable company, declined to comment. AXN (Israel) CEO Pini Sternschuss said the company does not conduct negotiations in the press, but said a strong effort was underway to reach a solution that would benefit all the parties.

Published by Globes [online] - www.globes.co.il - on December 25, 2002