Hot Cable Systems Media Ltd. (TASE: HOT) today announced that it was dropping CNN from its program schedule, belying earlier reports that it would delay the move pending further negotiations with CNN owner Turner Broadcasting Service Inc.
Hot took the decision after Turner Broadcasting System senior VP and managing director Middle East Ron Ciccone notified HOT CEO David Kaminitz that he would not come to Israel to negotiate, despite a request from the Knesset Economics Committee. Ciccone said that there was no point in coming if HOT had decided in advance to cut its costs for buying content.
When Kaminitz was appointed CEO of HOT over a year ago, he said that he had no intention of paying unreasonable prices by international standards for content. The cable broadcaster has reached agreements with a number of leading international channels on lower content costs, and continued to air these channels.
Kaminitz said in response, “CNN is a respected channel and ought to be included in HOT’s broadcasting platform. However, as with any commercial negotiations, when negotiations deadlocked, we had no choice but to drop the channel when the contract expired. Our subscribers will continue to receive a range of international news channels, such as Sky News, Fox News, and the BBC World.”
Published by Globes [online], Israel business news - www.globes.co.il - on November 1, 2007
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