Why Charter Was Sued By Univision

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U.S. Supreme CourtUnivision has sued Charter Communications in a dispute over programming fees. The case highlights increased tension between television programmers and distributors as pay-TV subscribers drop.


The lawsuit, filed in New York State Court Friday, comes after Charter just acquired Time Warner Cable, now the second-largest pay-TV company in the U.S. after Comcast.

Charter believes it’s entitled to pay lower programming rates under a long-term contract with TWC, reports AdAge.

The combined Charter-TWC has more leverage now when negotiating fees with programmers to carry their channels.

Univision is the largest Spanish-language broadcaster in the U.S.; it accused Charter of breach of contract by using the acquisition to impose fees that are “dramatically below” current markets prices for its content, the company said in a statement.

The complaint comes as Univision is preparing for an Initial Public Offering in the second half of the year (see our other story.)

 


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