Viacom-owned Nickelodeon also may have been worried about UPN launching a Disney kids block that would compete with its dominant kids lineup.
A programming deal with Nickelodeon presents its own problems, though. Sources say some cable operators are furious at the prospect of Nickelodeon programming losing its cable exclusivity, which is viewed as a main reason people subscribe.
UPN could simply be using its Nickelodeon option to get some negotiating leverage with Disney. The talks between UPN and Buena Vista the last time around involved a two-hour block Monday through Friday and Sunday mornings, starting by fall 1999.
– John Dempsey in New York and Cynthia Littleton contributed to this report.
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