The resolution of both disputes confirms what has already become an industry axiom: content will ultimately win the day in the age of multiple distribution outlets. Indeed, the triumph of News Corp over DISH and Cablevision was a nearly foregone conclusion given the importance of News Corp's sports programming including the World Series. Only an intervention from the regulator FCC or the Congress could have strengthened the operators' hand, but any hopes of such intervention were eventually put to rest by the FCC's inability to get involved despite operator entreaties, and an apparent willingness by the Democrat-controlled FCC.

Instead, FCC Chairman Genachowski's letter to Senator John Kerry last Friday came as a blow to the operators. In his letter, he stated in no ambiguous terms that the FCC does not have the authority to intervene in carriage negotiations and urged Congress to reform the retransmission consent system to provide for binding arbitration in disputes like these. But his call to action should give little comfort to operators as the House of Representatives is now firmly in the hands of the Republican Party which has resisted pushing the government into private business dealings. It is unlikely that the retransmission/carriage issue will be brought up for legislative action as long as the Republicans control the House. With the Republican 11/2 rout in the cards the weekend before, Cablevision and DISH threw in the towel within 48 hours of Mr. Genachowski's letter.

The fight with Cablevision took an unexpected turn when News Corp blacked out its online content (on Hulu and FOX website) from the operator's broadband footprint to heighten the impact of the TV signal blackout which had been going on for days. This episode marked the first attempt by a programmer to withhold non-sport online content as a pressure tactic in retransmission negotiations. Interestingly, the online blackout lasted only a few hours, ending abruptly once consumer groups began complaining that the strategy blocked online access for Cablevision Internet subscribers who get their TV through another provider. The TV signal blackout, in contrast, continued until the conclusion of the deal. Content owners may be determined to leverage their web content in the same way as the TV signal to get better deals, but it may not be possible at the moment as evidence by News Corp's speedy retraction.

Whether online content evolves into a bargaining chip or not, content owners will still have the upper hand in carriage/retransmission negotiations. Not only did News Corp secure retransmission fees for its broadcast stations (a high priority for the company), but it has also ensured strategic placement of its cable networks on the operators' systems. As part of Cablevision deal with New Corp it reluctantly agreed to continue to carry Nat Geo Wild, FOX Business Network and FOX Deportes in its basic digital package. DISH Network will continue to carry the Regional Sports Networks in the local package as well as the second lowest 120 Plus package. Lower tier carriage of these networks is a second victory for New Corp as it ensures wider distribution and higher advertising revenues.