Fox Network Will Seek Higher Fees From Cable, Satellite

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Fox Network Will Seek Higher Fees From Cable, Satellite
The Fox Network will demand higher fees from cable, satellite and fiber systems over the next few years as current contracts begin to expire, said News Corp. (NWS: 14.52, 0.23, 1.61%) chief operating officer Chase Carey at an investor conference on Monday.

Carey said the network needs to exact higher fees in order to be able to compete with cable networks that earn revenue from affiliate fees and advertising, MarketWatch reported.

The News Corp. executive admitted there would probably be some public disagreement between the company and cable and satellite providers, but argued, “We think Fox is another channel and making the distinction between a broadcast and cable channel is a looking-backward definition and not a looking-forward definition," according to MarketWatch.

Carey noted popular programming such as “American Idol” and “24” is valuable content, and could be a possible impetus for the network to demand more per subscriber, comparable to the $4 per-subscriber fee ESPN currently assesses, according to the report.

News Corp. is the parent company of the FOX Business Network and FOXBusiness.com, and also owns MarketWatch.

Shares of News Corp. eased 0.3% on Monday to $14.52.