Like other broadcasters, News Corp is attempting to plug the $8.6bn hole left by the declines in advertising from 2006 to 2009. If we assume that an agreement will be reached at around $0.50 per subscriber per month, Screen Digest believes that Fox stations could enrich themselves to the tune of $41.6m in calendar year 2011 (their fiscal year ends June 30). In 2009 its Cablevision's telecommunications segment (video, high-speed internet and voice) posted a gain of $266m in revenue over 2008. Similarly, in the first half of 2009, the segment increased year-over-year revenue by $159m.

While the gains from a potential retransmission deal with Cablevision are not insignificant, the real focus for News Corp. must be on securing increased carriage fees at its cable networks and regional sports networks. Screen Digest estimates that the company brought in $3.5bn in carriage fees for FX, The National Geographic Channel and its Fox Sports Networks in fiscal year 2010.

Securing additional carriage fee increases for its cable networks will continue to buoy  News Corp's television efforts and offset recent declines in advertising revenue at the Fox Network. The stakes for Dish Network are high. Despite increases in subscriber acquisition spending, Dish Network saw a decline in subscribers in Q2 2010. The resulting margin squeeze is likely one reason why Dish opted to drop several HD feeds from Disney networks in June. That was tough to give up, given that  the marketing of HD channels has been key to DBS for years. That decision affected 31% of Dish's subscribers, 4.4m who take HD. The loss of FX, 2009's 10th rated basic cable network in prime time, would create a hole in all Dish subscriber packages. The loss of their regional sports networks would undoubtedly drive a few sports-minded subscribers to their local telco or cable operator. Still, increases in programming costs may be too much for Dish Network, prompting the tough negotiating stance that in turn prompted News Corp to go over its head with the launch websites.