MELVILLE, N.Y. -- In a surprise, Cablevision subscribers on Long Island, N.Y., saw WABC/7 return to their screens shortly after the start of the Oscars telecast Sunday.

"We've made significant progress, and have reached an agreement in principle that recognizes the fair value of ABC7, with deal points that we expect to finalize with Cablevision," according to Rebecca Campbell, president of WABC.

"Given this movement, we're pleased to announce that ABC7 will return to Cablevision households while we work to complete our negotiations."

Earlier negotiations between Cablevision and Disney failed to resolve the dispute in time for Sunday night's start to the Oscars' telecast, leaving millions of viewers in the New York City metropolitan area scrambling for alternatives.

Cablevision had said earlier Sunday it was willing to enter into binding arbitration with Disney, to help end the impasse.

Under arbitration, both parties would agree to whatever a government-appointed overseer determines is a fair retransmission agreement.

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