Univision Sees Its Future in Fees

As the battle continues over carriage fees between Time Warner Cable and local broadcaster LIN TV, the cable operator is gearing up for what analysts expect to be its next major squabble. Time Warner Cable is bracing for a similar showdown with Spanish-language broadcasting powerhouse Univision Communications Inc., and industry observers say that the outcome will set the pace for a slew of similar deals that will be negotiated in coming months. Univision is among a growing number of broadcasters that are opting to negotiate with cable operators over a fee to distribute their channels, rather than requiring to be carried under the "must carry" Federal Communications Commission regulation, designed to ensure no broadcaster is shut out of distribution. By negotiating a fee, broadcasters can secure extra revenue as ratings decline and competition intensifies -- something cable operators have been willing to do in the past for important channels.