HomeMy WebLinkAboutUpdate - Time Warner NegotiationsCITY OF PALM DESERT
SPECIAL PROGRAMS DEPARTMENT
STAFF REPORT
X 11
REQUEST: Receive and File Status Update on Time Warner Negotiations
SUBMITTED BY: Frankie Riddle, Director of Special Programs
APPLICANT: N/A
DATE: September 12, 2013
CONTENTS: None
Recommendation
By Minute Motion, receive and file status update on Time Warner Negotiations
Background
In July 2013, the Mayor met with City staff to discuss the issues between Time Warner
and KMIR regarding the current negotiations and resulting impact to the community. At
that time staff indicated that the City had no jurisdiction where negotiations are at issue.
However, staff did make contact with Mr. Joe Gabaldon, Senior Director of Time Warner
in the San Diego office regarding the above issues and to determine what could be
done locally to assist in resolving the issue.
Mr. Gabaldon stated that the negotiations between CBS and Journal Broadcasting
Group (KMIR) are being handled at a national level, not local. He further indicated that
CBS on the national level was asking for a 600% or more price increase that Time
Warner pays for programming which is more than other affiliates. Journal Broadcasting
Group (KMIR) was asking for a 200% increase from previous compensation without
offering new content. Mr. Gabaldon noted that Time Warner is working to control costs
that would eventually filter down to the subscriber.
On August 19, 2013, after the on -going negotiation failure, staff wrote Mr. Gabaldon to
inquire again regarding the status of the negotiations. Staff conveyed the City's concern
regarding the lack of communication with local jurisdictions to keep us abreast of the on-
going situation, its concern with the continued elimination of local programs, as well as
resident concerns.
STAFF REPORT
STATUS UPDATE REGARDING TIME WARNER NEGOTIATIONS
SEPTEMBER 12, 2013
PAGE 2
On September 3, 2013, City staff met with Kathi Jacobs, Director of Community and
Government Relations to discuss the current status of negotiations. During this
meeting, she provided information on how the process works with regard to offering
local programs. According to Ms. Jacobs, the CBS negotiations have been completed
and things are back to normal. As for Journal Broadcasting (KMIR), negotiations
continue to be stalled and Time Warner has received no word as to when they might
return to the table to complete negotiations; however, they are hopeful that it will be
soon. With regard to the local programming issue, Ms. Jacobs stated that legally Time
Warner cannot continue to air local programs without specific authorization to do so by
Journal Broadcasting. She indicated that Journal Broadcasting has not opted to
authorize Time Warner to continue to provide local programming, which ultimately
resulted in the removal of local news and other local programs. She stated that Time
Warner would have no issue with continuing to offer local programming until
negotiations are completed.
In addition, Ms. Jacobs has agreed to attend the City Council meeting of October 10,
2013, to give an update on the negotiations (if not already resolved) and provide a
presentation on how the processes work within the cable business.
Submitted By:
Frankie Idle, Director of Special Programs CITY COUNCILACTION
APPROVED DENIED
RECEIVED -Fr )pro OTHER
Approval:
M. Wohlmuth, City Manager
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VERIFIED BY: 1 F K_I rG
Original on File with City Clerk's Office