EUREKA, CALIF. — In May 2006, Cox Communications completed its sale of cable television systems serving customers in West Texas, a portion of North Carolina, various communities across the middle of the U.S., and the California markets of Bakersfield and Eureka-Arcata.
The buyer? Cebridge Connections, with majority investors Oaktree Capital Management and Goldman Sachs. Once the deal closed, Cebridge changed its name to Suddenlink.
Nearly 15 years later, ex-Cox customers in one of those DMAs could, ironically, soon lose access to broadcast TV stations owned by Cox Media Group.
On Wednesday afternoon, Suddenlink responded.
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According to Atlanta-based CMG, today majority-owned by Apollo Global Management, SuddenLink may soon make what it calls “an anti-consumer decision” by dropping channels serving viewers in Tulsa, Memphis, Spokane, and the smaller markets of Greenville-Greenwood, Miss.; Alexandria, La.; and Eureka-Arcata, Calif.; in the absence of a new retransmission consent agreement.
Specifically, the stations potentially impacted by a retrans impasse between Suddenlink and CMG are FOX affiliates KAYU-28 in Spokane, WHBQ-13 in Memphis and KOKI-23 in Tulsa; ABC affiliate KLAX-31 in Alexandria; and the ABC, FOX, NBC and CBS stations serving Greenwood and Greenville, Miss.
However, it is the Humboldt County, Calif., stations that present an ironic twist for Cox. Fifteen years ago, it owned the MVPD. The stations it owns today, dominant NBC affiliate KIEM-3 in Eureka and CBS sibling KVIQ-LP 14, came to CMG in late 2019 after Brian Brady’s Northwest Broadcasting was sold to Apollo, ahead of its Cox deal. In 2005, KVIQ was a Clear Channel-owned property using Channel 6, picked up in 2002 from Ackerley Group. KIEM was owned by Pollack/Belz Broadcasting.
Is a “blackout” imminent, with the tiny Greenville-Greenwood, Miss., DMA imperiled yet again from receiving nearly every local network affiliate?
Perhaps. Alternatively, CMG is opting to strike first with a consumer warning, a move that could point fingers at Suddenlink before it can place blame on Cox for possibly short-changing customers of the MVPD, which is owned by Altice USA.
Paul Curran, CMG’s EVP of Television, said, “Our country continues to navigate through the COVID-19 pandemic and, during these uncertain times, it is more important than ever that our viewers know their trusted local stations are there for them, providing the news and information they need to make decisions for their families. CMG stations take pride in being trusted and vital resources for our communities, and we will fight to continue to fulfill this responsibility.”
In the 3pm PT hour on Wednesday, Suddenlink supplied RBR+TVBR with an official statement regarding its negotiations with Cox Media Group.
“We are currently negotiating a new carriage agreement with Cox Media Group and are disappointed that they are threatening to remove their channels from Suddenlink lineups in certain markets in an attempt to extract an exorbitant increase in fees from us and our customers, particularly in the midst of a pandemic when access to affordable local news is more important than ever,” Suddenlink said.
In its view, Cox Media Group is “currently demanding higher rates than we pay any other broadcaster, and with programming fees being the greatest contributor to rising cable costs, we urge Cox Media Group to stop its threats and instead focus on negotiating a new agreement that is fair for consumers, especially during these challenging times.”
Suddenlink also pointed out that through parent company Altice USA, “dozens of deals with programmers” have been reached in recent months, “including many broadcasters in just the last several weeks, with no disruption to our customers.”
It also addressed the unique Greenville-Greenwood, Miss., situation, noting that Cox Media Group’s “egregious demands could cause Suddenlink customers to lose access to all major broadcast stations on their lineup in that market.”
— Reporting by Ethan Hunt. Additional reporting by Adam Jacobson, in Boca Raton, Fla.
