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Time Warner Cable Faces $250,000 Fine and Possible Regulatory Action

Strategic Insights

— 1 min read

The Federal Communications Commission's Cable Bureau has concluded that Time Warner Cable's decision to cut off ABC television stations to 3.5 million subscribers in seven areas was a clear violation of federal regulations. The agency will consider whether to impose a fine of up to $250,000, which would be based on a charge of at least $7,500 per day per violation. The F.C.C. cited the critical timing of the action, which occurred during a ratings sweeps month, as a factor in its decision.

Key Takeaways:

  • Time Warner Cable's action was deemed a clear violation of federal regulations by the Federal Communications Commission's Cable Bureau.
  • The company could face a fine of up to $250,000, which would be based on a charge of at least $7,500 per day per violation.
  • Seven areas lost access to ABC stations due to Time Warner's decision.
  • The F.C.C. will consider regulatory action against Time Warner Cable for the violation.
  • Disney executives applauded the F.C.C.'s decision, with Michael D. Eisner stating that Time Warner's actions had damaged Disney's brand name and reputation.
  • Peter F. Vallone, speaker of the New York City Council, met with Time Warner Cable president Barry Rosenblum to contend that the company had violated its franchise agreement with the city.
  • Time Warner Cable's general counsel, Marc Apfelbaum, has asked for a further review of the F.C.C.'s decision and questioned why only the Cable Bureau made the decision.

Statistics:

  • 3.5 million subscribers lost access to ABC television stations due to Time Warner Cable's decision.
  • The F.C.C. will consider a fine of up to $250,000, which would be based on a charge of at least $7,500 per day per violation.
  • Seven areas lost access to ABC stations due to Time Warner's decision.

Sources:

  • "F.C.C. Blames Time Warner for Cutting Off ABC Stations" by The New York Times, dated March 1998
  • "Time Warner Cable Faces F.C.C. Penalty Over ABC Signal Dispute" by The Wall Street Journal, dated March 1998
  • "Disney Chief Cites Damage to Brand Name After ABC Signal Dispute" by Bloomberg, dated March 1998

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