Oct. 3 (Bloomberg) -- Time Warner Cable Inc. viewers in 11 markets including Indianapolis are without some television programming today after the company failed to reach a deal on carriage fees with station owner Lin TV Corp.

Time Warner's contract with Lin TV expired at midnight, and the cable operator is no longer running the broadcaster's programming on its system, Lin TV spokeswoman Courtney Guertin said in an e-mail. The two sides are still negotiating, she said. Lin TV removed its channels after demanding ``millions in cash,'' Time Warner Cable said in a statement.

``Lin TV already makes millions of dollars in additional advertising revenue as a direct result of being on Time Warner Cable,'' Melinda Witmer, the New York-based cable company's chief programming officer, said in the statement.

Providence, Rhode Island-based Lin, which owns or operates 29 stations, dropped 49 cents, or 11 percent, to $3.80, its lowest in more than six years, at 4:05 p.m. in New York Stock Exchange composite trading. The shares have lost 69 percent this year. Time Warner Cable rose 21 cents to $22.46. It has declined 19 percent this year.

The dispute comes as cable operators face increased competition from satellite providers and telephone companies and TV station owners wrestle with slumping advertising sales.

At issue are retransmission fees -- payments cable operators make for the right to carry local broadcast signals. Many retransmission contracts expire on Dec. 31, possibly forcing cable viewers around the U.S. to look elsewhere for the Super Bowl and early season episodes of ``American Idol.''

`Worrisome Tone'

``We believe this sets a worrisome tone for how TWC will deal with retransmission-consent negotiations with other broadcasters over the coming months,'' Pali Capital LLC analyst Rich Greenfield said in a note today.

The dispute with Lin TV knocks out some programming to Time Warner Cable customers in markets including Buffalo, New York; Austin, Texas; and Columbus, Ohio. In Green Bay, Wisconsin, Lin's Fox affiliate WLUK is to carry Sunday's game of the National Football League's Packers. Today the station's Web site urged customers to ``watch WLUK-TV through other means,'' including Dish Network Corp.'s satellite service or by using an antenna.

About 2.7 million of Time Warner Cable's 13.3 million video customers are affected, Greenfield said. The company also sells phone and Internet service.

``We expect Time Warner Cable subscribers to begin seeking alternative video providers over the coming days, particularly in markets where NFL programming is a major issue,'' the New York-based analyst wrote. He rates Time Warner Cable ``sell'' and doesn't own shares.

To contact the reporter on this story: Todd Shields in Washington at tshields3@bloomberg.net

Last Updated: October 3, 2008 16:17 EDT