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Raleigh-Durham after talks between parent Walt Disney Co and cable operator, allowing Time Warner to continue carrying ABC stations, break down; both sides blame each other; dispute began in 1999 after Disney requested several concessions from Time Warner in return for allowing cable operator to continue carrying seven of its ABC stations; demanded that Time Warner not only feature its new Toon Disney and Soap Channel, but also make it part of basic service packages with payment of $300 million; Time Warner agreed to carry channels, but balked at payment Disney is seeking; blackout could ultimately effect 3.5 million Time Warner subscribers in major markets nationwide May 1, 2000 Front Page News
Public Relations Make a Poor Substitute for Soap Operas and Game Shows
By FELICITY BARRINGER WITH JIM RUTENBERG Howard J Rubenstein, public relations impresario, had planned broad outlines of Walt Disney Co's public relations strategy well before Time Warner Cable pulled plug on Disney-owned ABC network at 12:01 am May 1; Rubenstein and his clients were ready to portray Time Warner as rapacious monopolist; ensuing 36-hour all-fronts assault involved radio and newspaper advertisements, in-person meetings between Disney's chief lobbyist Preston R Padden with media executives and early-morning call from Disney president Robert A Iger, to Sen Charles E Schumer; by end of 39-hour blackout of ABC progamming, images of both media giants had been muddled, but Disney appeared to have left clearer message behind; Time Warner Cable senior vice president Fred Dressler says Disney hoped to use ABC blackout to make it appear that Time Warner was abusing its power and to raise question about pending merger with America Online; Dressler acknowledges that by removing ABC from its systems, Time Warner gave Disney ammunition in its attempts to paint Time Warner as unyielding monopoly; adds Time Warner had no choice but to do what it did