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Cablevision, one of the largest providers of cable TV in New York New Jersey, and Connecticut, almost didn't have the Oscars on last night. A disagreement with the Disney corporation left 3.1 million customers without ABC TV for several hours. Whether or not viewers took out quick loans to get digital broadcast TV receivers, it was about 13 minutes into the broadcast when the signal turned back on.

The disagreement between Cablevision and Disney

The disagreement that led to Cablevision customers being without ABC this weekend started over two years ago. Cablevision was asked to pay Disney, which owns ABC broadcast television, $ 1 per customer that receives the ABC TV signal. Cablevision currently charges $18 a month for basic broadcast signals – the channels that are broadcast for free over the air. Although Cablevision charges its customers for this service, Disney Corporation has not been paid any of that fee.

Cablevision's problems echo Time Warner's

The disagreement between Cablevision and Disney is very similar to the standoff last year that News Corp, the owner of FOX TV, and Time Warner Cable had. In that disagreement, News Corp was demanding that Time Warner pay a per-customer fee for their broadcast signal. Eventually, Time Warner and News Corp came to agreement without an interruption in channel service.

How cable television works

The current way cable providers such as Cablevision work is a fee-for-channel service. Cable channel providers have contracts with cable TV services. Cable service providers are charged for each channel to receive their broadcast. The cable service then packages the channels into the various bundles they offer. On the other hand, premium channels, like HBO and Showtime, charge an individual, higher fee for subscribers. Until recently, the major free broadcast signals – the ones you get for free with an antenna – were provided for free to the cable service.

Cablevision’s argument

Recently, with ad revenues dropping, TV channel producers have been trying to find ways to help prop up the ever-expanding cost of producing these “free” channels. To continue receiving their broadcast channel, Disney, which owns ABC, was asking Cablevision to pay a fee per subscriber. Cablevision was refusing, however. Cablevision's argument was that if every broadcast channel required the same sort of deal, it would cost Cablevision subscribers several extra dollars per month. The extra fees, according to them, could very much lead to losing subscribers, particularly ones who may need a loan to pay these extra charges down the lind.

The drama doesn’t end here

The seemingly never-ending drama of the availability of television does not stop with Cablevision. Many other cable service providers and cable tv companies are looking into changing or adding to their fee structures. While broadcast channels can still be obtained for free, it certainly looks like most customers are going to have to end up paying more in the near future, even for a basic cable TV service.