19 Major Network TV Channels Saved, For Now

**RebelMan** · 12-31-2008, 06:33 PM

Blackout looms in Time Warner Cable-Viacom fight

By RYAN NAKASHIMA, AP Business Writer
47 mins ago

LOS ANGELES – A spat between Time Warner Cable Inc. and Viacom Inc. over how much the cable company pays to carry channels such as MTV and Comedy Central headed down to the wire on New Year's Eve — with little sign of movement as a blackout looked likely at a minute past the stroke of midnight.

Time Warner, the nation's second-largest cable operator, proposed an increase in what it pays for Viacom's channels, but the offer was rejected as "a pittance," said Viacom spokeswoman Kelly McAndrew.

If the impasse is not resolved, shows such as "SpongeBob SquarePants" and "The Colbert Report" will be unavailable to Time Warner's 13.3 million cable subscribers. Time Warner Cable primarily serves people in New York state, the Carolinas, Ohio, Southern California and Texas.

Time Warner Chief Executive Glenn Britt on Wednesday called Viacom's demand for a 12 percent increase in fees — an extra $39 million on top of the estimated $300 million it pays Viacom annually — extortion and outrageous given the recession. Viacom countered that the requested increase amounted to an extra $2.76 annually per subscriber.

"We sympathize with the fact that Viacom's advertising business is suffering and that their networks' ratings have largely been declining," Britt said in a statement. "However, we can't abide their attempt to make up their lost revenue on the backs of Time Warner Cable customers."

In a public relations blitz, Viacom took out newspaper ads showing Nickelodeon's animated bilingual heroine "Dora the Explorer" crying and clinging to her monkey pal, Boots.

"Why is Dora crying?" the ad asks. "Time Warner Cable is taking Dora off the air tonight!" The ad urged viewers to call Time Warner Cable and demand that their favorite shows remain on the air.

Viacom also planned to run TV ads starting Thursday on local broadcast stations in 11 major markets including New York, Los Angeles and Dallas, blaming Time Warner Cable for the blackout.

Time Warner spokesman Alex Dudley said the advertising campaign was a sign that Viacom had been preparing for a damaging shutdown.

"They never had any intention of settling this or negotiating in good faith," Dudley said.

Viacom said Americans spend a fifth of their TV time watching Viacom shows but its fees make up less than 2.5 percent of the Time Warner cable bill.

McAndrew said that despite ranking high in the ratings, Viacom's cable networks' average daily license fee is 65 percent lower than that of networks run by The Walt Disney Co., News Corp.'s Fox, Time Warner Inc.'s Turner Broadcasting System and Discovery Communications Inc.

Analyst Michael Nathanson with Bernstein Research said Viacom's channels had been "underpriced relative to their peers." He expected a settlement relatively quickly.

"Both sides may not want to see if this battle results in mutually assured destruction, as Viacom loses ad dollars and Time Warner Cable loses subscribers," he wrote in a research note.

Public carriage fee disputes of this scale between a programmer and a cable operator are not that common, especially when there's a threat of a blackout, said Derek Baine, senior analyst at SNL Kagan in Monterey, Calif. Typically, both sides agree on contract extensions as they negotiate on terms, he said, and any blackouts don't last long because TV operators get calls from outraged customers.

One prominent carriage fee fight in recent years was in 2004, between Viacom and EchoStar, the former name of Dish Network Corp. Shows were dropped for two days.

In October, Time Warner Cable wrestled with LIN TV Corp., which operates local TV stations affiliated with NBC, CBS, Fox and CW. But this time, Time Warner Cable faces Viacom, the largest cable programmer, not a small independent with a handful of channels.

"It's a must have," Baine said. "That's probably why Viacom is playing hardball."

If Time Warner Cable and Viacom can't reach a deal or an extension, the channel blackout would occur after midnight in each time zone. The affected channels would be: Comedy Central, Logo, Palladia, MTV, MTV 2, MTV Hits, MTV Jams, MTV Tr3s, Nickelodeon, Noggin, Nick 2, Nicktoons, Spike, The N, TV Land, VH1, VH1 Classic, VH1 Soul and CMT: Pure Country.

Viacom shares rose 88 cents, or 4.5 percent, to close at $20.12 on Wednesday, while Time Warner Cable shares fell 31 cents, or 1.4 percent, to $21.45.

The Phone Number to call to help TV viewers of these 19 Networks to protest this action by Time-Warner Cable & Viacom is 1-800-762-3786

**RebelMan** · 01-01-2009, 01:47 PM

Time Warner Cable and Viacom reach deal

By RYAN NAKASHIMA, AP Business Writer
Thu Jan 1, 4:27 am ET

LOS ANGELES – Millions of Time Warner Cable customers won't lose their access to MTV and 18 other channels after the cable giant reached an agreement early Thursday with media conglomerate Viacom Inc.

The two sides, citing disagreement over fee hikes, had threatened a damaging blackout at a minute past midnight Thursday that would have cut off shows such as "SpongeBob SquarePants" and "The Colbert Report" to about 15.7 million subscribers.

"We are pleased that our customers will continue to be able to watch the customers will continue to be able to watch the programming they enjoy on MTV Networks," said Glenn Britt, president and CEO of Time Warner Cable Inc. "We are sorry they had to endure a day of public disagreement as we worked through this negotiation."

Terms of the deal were not disclosed. Details must still be finalized over the next few days, the companies said.

Viacom president and CEO Philippe Dauman said the company was happy a deal was struck. Viacom had mounted an advertising onslaught warning customers of the possible blackout, taking out ads in major newspapers and Web sites from The New York Times and TVGuide.com featuring a tearful "Dora the Explorer" crying and clinging to her monkey pal, Boots.

"Why is Dora crying?" the ad read. "Tonight you will lose Nickelodeon and 18 other channels from your TV." It then prompted people to call their cable company to complain.

The dispute would have affected some 13.3 million Time Warner Cable subscribers, mainly in New York state, the Carolinas, Ohio, Southern California and Texas; and 2.4 million customers of Bright House Networks in Michigan, Indiana, California, Alabama and Florida.

Time Warner Chief Executive Glenn Britt on Wednesday had called Viacom's demand for a 12 percent increase in fees — an extra $39 million on top of the estimated $300 million it pays Viacom annually — extortion and outrageous given the recession. Viacom countered that the requested increase amounted to an extra $2.76 annually per subscriber.

Viacom had argued that Americans spend a fifth of their TV time watching Viacom shows but its fees made up less than 2.5 percent of the Time Warner cable bill.

Spokeswoman Kelly McAndrew said that despite ranking high in the ratings, Viacom's cable networks' average daily license fee was 65 percent lower than that of networks run by The Walt Disney Co., News Corp.'s Fox, Time Warner Inc.'s Turner Broadcasting System and Discovery Communications Inc.

Analyst Michael Nathanson with Bernstein Research said Viacom's channels had been "underpriced relative to their peers."

Public carriage fee disputes of this scale between a programmer and a cable operator are not that common, especially when there's a threat of a blackout, said Derek Baine, senior analyst at SNL Kagan in Monterey, Calif. Typically, both sides agree on contract extensions as they negotiate on terms, he said, and any blackouts don't last long because TV operators get calls from outraged customers.

One prominent carriage fee fight in recent years was in 2004, between Viacom and EchoStar, the former name of Dish Network Corp. Shows were dropped for two days.

In October, Time Warner Cable wrestled with LIN TV Corp., which operates local TV stations affiliated with NBC, CBS, Fox and CW. But this time, Time Warner Cable faced Viacom, the largest cable programmer, not a small independent with a handful of channels.

The channels in the dispute were Comedy Central, Logo, Palladia, MTV, MTV 2, MTV Hits, MTV Jams, MTV Tr3s, Nickelodeon, Noggin, Nick 2, Nicktoons, Spike, The N, TV Land, VH1, VH1 Classic, VH1 Soul and CMT: Pure Country.

Viacom shares rose 88 cents, or 4.5 percent, to close at $20.12 on Wednesday, while Time Warner Cable shares fell 31 cents, or 1.4 percent, to $21.45.

12-31-2008, 06:33 PM	#1 (permalink)
RebelMan AgEnT oF ChAoS Join Date: Jul 2003 Location: The Web Posts: 12,589 My Profile	19 Major Network TV Channels Saved, For Now Blackout looms in Time Warner Cable-Viacom fight By RYAN NAKASHIMA, AP Business Writer 47 mins ago LOS ANGELES – A spat between Time Warner Cable Inc. and Viacom Inc. over how much the cable company pays to carry channels such as MTV and Comedy Central headed down to the wire on New Year's Eve — with little sign of movement as a blackout looked likely at a minute past the stroke of midnight. Time Warner, the nation's second-largest cable operator, proposed an increase in what it pays for Viacom's channels, but the offer was rejected as "a pittance," said Viacom spokeswoman Kelly McAndrew. If the impasse is not resolved, shows such as "SpongeBob SquarePants" and "The Colbert Report" will be unavailable to Time Warner's 13.3 million cable subscribers. Time Warner Cable primarily serves people in New York state, the Carolinas, Ohio, Southern California and Texas. Time Warner Chief Executive Glenn Britt on Wednesday called Viacom's demand for a 12 percent increase in fees — an extra $39 million on top of the estimated $300 million it pays Viacom annually — extortion and outrageous given the recession. Viacom countered that the requested increase amounted to an extra $2.76 annually per subscriber. "We sympathize with the fact that Viacom's advertising business is suffering and that their networks' ratings have largely been declining," Britt said in a statement. "However, we can't abide their attempt to make up their lost revenue on the backs of Time Warner Cable customers." In a public relations blitz, Viacom took out newspaper ads showing Nickelodeon's animated bilingual heroine "Dora the Explorer" crying and clinging to her monkey pal, Boots. "Why is Dora crying?" the ad asks. "Time Warner Cable is taking Dora off the air tonight!" The ad urged viewers to call Time Warner Cable and demand that their favorite shows remain on the air. Viacom also planned to run TV ads starting Thursday on local broadcast stations in 11 major markets including New York, Los Angeles and Dallas, blaming Time Warner Cable for the blackout. Time Warner spokesman Alex Dudley said the advertising campaign was a sign that Viacom had been preparing for a damaging shutdown. "They never had any intention of settling this or negotiating in good faith," Dudley said. Viacom said Americans spend a fifth of their TV time watching Viacom shows but its fees make up less than 2.5 percent of the Time Warner cable bill. McAndrew said that despite ranking high in the ratings, Viacom's cable networks' average daily license fee is 65 percent lower than that of networks run by The Walt Disney Co., News Corp.'s Fox, Time Warner Inc.'s Turner Broadcasting System and Discovery Communications Inc. Analyst Michael Nathanson with Bernstein Research said Viacom's channels had been "underpriced relative to their peers." He expected a settlement relatively quickly. "Both sides may not want to see if this battle results in mutually assured destruction, as Viacom loses ad dollars and Time Warner Cable loses subscribers," he wrote in a research note. Public carriage fee disputes of this scale between a programmer and a cable operator are not that common, especially when there's a threat of a blackout, said Derek Baine, senior analyst at SNL Kagan in Monterey, Calif. Typically, both sides agree on contract extensions as they negotiate on terms, he said, and any blackouts don't last long because TV operators get calls from outraged customers. One prominent carriage fee fight in recent years was in 2004, between Viacom and EchoStar, the former name of Dish Network Corp. Shows were dropped for two days. In October, Time Warner Cable wrestled with LIN TV Corp., which operates local TV stations affiliated with NBC, CBS, Fox and CW. But this time, Time Warner Cable faces Viacom, the largest cable programmer, not a small independent with a handful of channels. "It's a must have," Baine said. "That's probably why Viacom is playing hardball." If Time Warner Cable and Viacom can't reach a deal or an extension, the channel blackout would occur after midnight in each time zone. The affected channels would be: Comedy Central, Logo, Palladia, MTV, MTV 2, MTV Hits, MTV Jams, MTV Tr3s, Nickelodeon, Noggin, Nick 2, Nicktoons, Spike, The N, TV Land, VH1, VH1 Classic, VH1 Soul and CMT: Pure Country. Viacom shares rose 88 cents, or 4.5 percent, to close at $20.12 on Wednesday, while Time Warner Cable shares fell 31 cents, or 1.4 percent, to $21.45. The Phone Number to call to help TV viewers of these 19 Networks to protest this action by Time-Warner Cable & Viacom is 1-800-762-3786

01-01-2009, 01:47 PM	#2 (permalink)
RebelMan AgEnT oF ChAoS Join Date: Jul 2003 Location: The Web Posts: 12,589 My Profile	Time Warner Cable and Viacom reach deal By RYAN NAKASHIMA, AP Business Writer Thu Jan 1, 4:27 am ET LOS ANGELES – Millions of Time Warner Cable customers won't lose their access to MTV and 18 other channels after the cable giant reached an agreement early Thursday with media conglomerate Viacom Inc. The two sides, citing disagreement over fee hikes, had threatened a damaging blackout at a minute past midnight Thursday that would have cut off shows such as "SpongeBob SquarePants" and "The Colbert Report" to about 15.7 million subscribers. "We are pleased that our customers will continue to be able to watch the customers will continue to be able to watch the programming they enjoy on MTV Networks," said Glenn Britt, president and CEO of Time Warner Cable Inc. "We are sorry they had to endure a day of public disagreement as we worked through this negotiation." Terms of the deal were not disclosed. Details must still be finalized over the next few days, the companies said. Viacom president and CEO Philippe Dauman said the company was happy a deal was struck. Viacom had mounted an advertising onslaught warning customers of the possible blackout, taking out ads in major newspapers and Web sites from The New York Times and TVGuide.com featuring a tearful "Dora the Explorer" crying and clinging to her monkey pal, Boots. "Why is Dora crying?" the ad read. "Tonight you will lose Nickelodeon and 18 other channels from your TV." It then prompted people to call their cable company to complain. The dispute would have affected some 13.3 million Time Warner Cable subscribers, mainly in New York state, the Carolinas, Ohio, Southern California and Texas; and 2.4 million customers of Bright House Networks in Michigan, Indiana, California, Alabama and Florida. Time Warner Chief Executive Glenn Britt on Wednesday had called Viacom's demand for a 12 percent increase in fees — an extra $39 million on top of the estimated $300 million it pays Viacom annually — extortion and outrageous given the recession. Viacom countered that the requested increase amounted to an extra $2.76 annually per subscriber. Viacom had argued that Americans spend a fifth of their TV time watching Viacom shows but its fees made up less than 2.5 percent of the Time Warner cable bill. Spokeswoman Kelly McAndrew said that despite ranking high in the ratings, Viacom's cable networks' average daily license fee was 65 percent lower than that of networks run by The Walt Disney Co., News Corp.'s Fox, Time Warner Inc.'s Turner Broadcasting System and Discovery Communications Inc. Analyst Michael Nathanson with Bernstein Research said Viacom's channels had been "underpriced relative to their peers." Public carriage fee disputes of this scale between a programmer and a cable operator are not that common, especially when there's a threat of a blackout, said Derek Baine, senior analyst at SNL Kagan in Monterey, Calif. Typically, both sides agree on contract extensions as they negotiate on terms, he said, and any blackouts don't last long because TV operators get calls from outraged customers. One prominent carriage fee fight in recent years was in 2004, between Viacom and EchoStar, the former name of Dish Network Corp. Shows were dropped for two days. In October, Time Warner Cable wrestled with LIN TV Corp., which operates local TV stations affiliated with NBC, CBS, Fox and CW. But this time, Time Warner Cable faced Viacom, the largest cable programmer, not a small independent with a handful of channels. The channels in the dispute were Comedy Central, Logo, Palladia, MTV, MTV 2, MTV Hits, MTV Jams, MTV Tr3s, Nickelodeon, Noggin, Nick 2, Nicktoons, Spike, The N, TV Land, VH1, VH1 Classic, VH1 Soul and CMT: Pure Country. Viacom shares rose 88 cents, or 4.5 percent, to close at $20.12 on Wednesday, while Time Warner Cable shares fell 31 cents, or 1.4 percent, to $21.45.

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