Time Warner Disney Draw Truce

files/pictures/picture-35.jpgTime Warner chairman, Gerald Levin, announced that the company has reached a "agreement in principle" with Disney about the carrying of Disney cable stations on Time Warner operating systems. The recent dispute over the price Time Warner would pay for the cable networks led to Time Warner aggressively pulling ABC from its cable system. This action quickly drew heat from regulators and the public, who had service interrupted during sweeps week specials of WHO WANTS TO BE A MILLIONARE? Levin said that the May 1 pulling of ABC was "an unfortunate failure of communication" between the two firms and "was a regrettable event, and we’ve apologized to our consumers." Dick Parsons, president of Time Warner, and Bob Iger, chairman of the ABC Group and president of Walt Disney International, shook on the deal that will be signed later next week. The pact comes sooner than the previously agreed deadline set by both companies of July 15. On Wednesday, May 17, Time Warner was found guilty of breaking Los Angeles’ cable service agreement. However, the city’s attorney’s office decided not to fine the media giant, but will file a stricter version of the code so that it won’t ever happen again. A Time Warner rep apologized to committee members. Time Warner has decided to provide LA subscribers with a US$1 rebate and one month free service of HBO Family Channel or Starz premium channels. Also on Wednesday, FFC chairman William Kennard found Time Warner guilty of violating federal "sweeps" laws. Continuing to plead innocence, Time Warner reps say they have not violated any laws local, state or federal.