Warner Brothers International Television Distribution v. Golden Channels & Co.

Facts

This is an appeal from a judgment following a bench trial. We take the facts from the findings and exhibits except as otherwise explained.

Starting in 1990, Warner Brothers licensed television pro- gramming to Golden Channels, a cable television company in Israel. Golden was associated with two other cable television companies, and the three together, as Israel Cable Program- ming Ltd., coordinated their operations. For almost a decade, Warner and Golden made agreements lasting about one year. None of those are at issue. This case arises out of a contract made in 1999. 3976 WARNER BROTHERS INT’L v. GOLDEN CHANNELS The Israeli television market changed in January 1999, when the government licensed a satellite television broad- caster. Satellite television subjected Golden to competition and opened up different possibilities, positive and negative, for Warner.

Warner and Golden accordingly changed their arrange- ment. Instead of year to year agreements, they made a con- tract for 30 months. Under the new agreement, Golden had less power to pick and choose programs, and had to buy at least the minimum amounts specified in the contract of vari- ous types of programs,…