Fox-Cox Flap Throws Sports Fans for a Loss

With NFL playoffs looming, about 400,000 cable subscribers have lost their connection to the Fox channels because of a dispute between the entertainment giant and a cable operator.

The conflict, between Fox Group Inc. and Cox Communications Corp., has already caused sports fans in Texas to miss the Cotton Bowl and a Dallas Cowboys game and probably frustrated “Ally McBeal” followers Monday night in that region as well as in Northern Virginia and Cleveland.

Fox refused to allow several Cox systems to retransmit its broadcast signal after Cox declined to add two Fox cable channels to its systems as it expands capacity by upgrading to digital technology. Cox was forced to drop the programming midnight Friday, when its contract with Fox to retransmit the broadcast signal expired, although the two companies were expected to resume negotiations Monday.

Similar deadlines could soon knock Fox off Cox systems in Phoenix and in Orange County, a Cox spokeswoman said.

Each company claims to be looking out for its customers’ interest. But the cable company could suffer more, especially now that customers can switch to satellite-dish TV reception without losing major local channels, analysts said.

Cable companies do not pay to retransmit the signals of TV network stations, analysts say. But the networks have pressured cable operators to run their specialty channels, such as ABC’s ESPN and NBC’s MSNBC, in exchange for retransmitting the signals of network stations.

In the current flap, Fox asked Cox to carry FXM, a Fox movie channel, and Fox Sports World on all of its digital networks in exchange for carrying the local Fox affiliates. Although other large cable operators have agreed to the terms, Cox said the channels are not in demand and refused to pass these added costs to its customers.