NEW YORK (AP) _ Time Warner is offering rebates and premium channels to the 3.5 million customers it cut off from ABC this week during a contract dispute with ABC's parent, Walt Disney Co.

Time Warner Cable of New York City will give its subscribers a two-day rebate and a free month of a premium channel. Similar benefits will be offered in all affected areas, including Houston, Los Angeles, and in North Carolina, Ohio and Wisconsin.

Details of the offer will be on this month's bills.

The company's New York division apologized to customers for dropping ABC's signal. ``Although we can't erase the frustration this week's events might have caused you, we wish to demonstrate our appreciation and reiterate our commitment to you,'' a full-page ad in The New York Times said.

Time Warner dropped ABC's signal Monday in a battle over compensation for Disney's cable networks. The signal was restored the next day after the two companies reached a truce and set a July 15 deadline to resolve the dispute.

The Federal Communications Commission accused the cable company Wednesday of violating regulations.

On Wednesday, ABC offered a $198 rebate to a limited number of Time Warner cable customers in New York City, Houston and Los Angeles who want to switch to satellite television.