By JIM RUTENBERG ABC television network goes dark on Time Warner Cable systems in New York, Philadelphia and

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

ABC Goes Off Cable Systems In Key Markets

By JIM RUTENBERG ABC television network goes dark on Time Warner Cable systems in New York, Philadelphia and 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

May 3, 2000 Business News

Time Warner-Disney Fight Is a Boon for Satellite TV

By JIM RUTENBERG The dispute between Time Warner and the Walt Disney Company that led to ABC's being blocked from 3.5 million homes earlier this week is proving to be a boon for the satellite television industry. About 25,000 Time Warner subscribers have asked for the coupons that entitle them to receive free equipment from DirecTV, a unit of Hughes Electronics, which is a division of General Motors, and thousands more have subscribed to the Dish Network of EchoStar Communications. May 5, 2000 Business News

MEDIA; Reconstructing the Genesis of a Blunder

By JIM RUTENBERG Time Warner officials now say decision to block Disney's ABC television network was based on legal miscalculation and mistaken conviction that Disney would back down; poisonous atmosphere at talks over how much cable company should pay Disney for use of three of its cable channels and over whether Disney would renew Time Warner's right to carry ABC apparently clouded their judgments; photos