Viacom Channels May Go Dark In Time Warner License Dispute
Channels include Nickelodeon, MTV, Comedy Central and VH1
By Alex Weprin -- Broadcasting & Cable, 12/30/2008 4:12:00 PM
VIDEO: See Viacom's Time Warner ad campaign below.
Time Warner Cable subscribers that are fans of Spongebob Squarepants, The Colbert Report or The Hills may have to ring in the new year without their favorite programs. Viacom channels, including Nickelodeon, MTV, Comedy Central, VH1 and 15 other networks appear set to go dark on Time Warner Cable systems at midnight Wednesday. Viacom is preparing to pull the channels as part of a license agreement renewal dispute between the two companies.
Viacom asked Time Warner Cable for an increase of just under 25 cents per subscriber per month for carrying its 19 channels. The company justified the increase by saying its channels have been undervalued by Time Warner Cable.
"Americans spend more than 20% of their TV viewing time watching our networks, yet our fees amount to less than 2.5% of what Time Warner generates from their average customer," said a Viacom statement.
While the percentage increase per channel Viacom is seeking was not provided, someone close to the matter pegged it in the low double digits.
"Viacom is looking to make up for sagging ratings and declining ad revenue on the backs of Time Warner Cable Customers," said a Time Warner Cable spokesperson. "The increase they asked for was egregious; we have to fight for our customers."
In what is becoming a larger source of contention between MSOs and cable networks, Time Warner Cable cited the ubiquity of Viacom shows online as a reason for not valuing the networks as highly. Shows such as The Hills and The Daily Show with Jon Stewart are available in full for free online.
"Given our audiences, digital is a great compliment to the linear, but in no way is it a replacement," said an MTV Networks spokesperson. "In fact, we've seen linear ratings increase across our networks as online usage has increased. We understand this is a sensitive issue for our affiliates and we have been exploring authentication technology to further reinforce our commitment to partnership."
While the number of affected customers was not available at press time, the dispute will affect all of Time Warner Cable's top markets, including New York City, Los Angeles, Dallas-Fort Worth, Tampa-St. Petersburg/Sarasota (Brighthouse), Cleveland, Cincinnati and others.
Time Warner Cable is the second largest cable operator in the U.S., with nearly 13.3 million basic cable subscribers as of September.
Viacom is launching an advertising campaign asking Time Warner Cable customers to call the MSO and ask that they make a deal.
See the video of the ad campaign below.
Viacom's Time Warner Ad Campaign from Broadcasting & Cable on Vimeo.
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This is way beyond old with Bright House. Every other month they are removing channels from the lineup. There new software is the biggest disgrace on the planet with freezing, lockups, 10 second delays, etc...
We don't get Fox Sports Florida in Orlando (EVEN THOUGH IT'S ON STANDARD TIER IN TAMPA).
No NFL Network. MLB Network.
If you watch sports then Bright house is not for anyone. Not sport friendly at all. Unbelievable that we can not watch local baseball, basketball and other sports when we live here. We get blacked out. Even if you buy the sport packages from indemand blackout still happen.
Made the call and switching to ATT Uverse. Thank you ATT for finally bringing competition to central florida. THANK YOU!!!!!
sandy shimmer - 12/31/2008 11:35:00 AM EST -
This is the exact same thing that LIN Broadcasting did to our customers and after not having a local channel which was WISHTV for around a month, month and a half, Brigthouse finally made some halfway deal to get it back. We're not talking a local channel though, we're talking about a group of channels that are only available on cable/dish/phone company. Unlike LIN, they cannot afford to loose that many subscribers because then nobody will see they're channels except online for FREE.
Brigthouse Employee - 12/31/2008 9:01:00 AM EST -
Drop Viacom and don’t raise my rates. I won’t miss any of the channels in question and am disgusted by Viacom’s attempt to profit on the backs of cable/satellite subscribers. As reported in Reuters and AP, Viacom's cable/satellite ad revenues and ratings are dropping in part due to the fact that they make their most popular shows available for download on the internet.
So Viacom wants cable ad revenue, internet ad revenue, and wants to increase fees that will be passed on to me? H*** no.
If a cable/satellite subscriber wants a Viacom channel so much, they can pay for it a la carte. Don’t pass the buck to every single subscriber.
TWCSubscriber - 12/31/2008 3:01:00 AM EST
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