NBC Criticizes Decision by Operator of Pax TV

NBC Universal said Paxson Communications Corp.’s plan to run infomercials on its Pax TV network violated NBC’s sales contracts and would diminish Pax’s value.

Paxson has notified NBC that it wanted to end contracts that allow NBC to sell local and national advertising slots for Pax TV, NBC said.

Paxson, 32% owned by NBC Universal, plans to rely on revenue from paid programming sold by its own sales force. NBC Universal is majority owned by General Electric Co.