Parks Associates Blog

Wednesday, December 31, 2008

Time Warner and Viacom dispute to cost consumers more

Viacom and Time Warner Cable are in a dispute over carriage fees, as Viacom wants an increase in fees for their channels. In response, Time Warner has threatened to no longer show programming on any of Viacom's cable channels, starting at 12:01 a.m. January 1'st.

Unfortunately for many Time Warner Cable subscribers, Viacom carries some of their favorite programming. No more Viacom channels on Time Warner Cable means no more Nickelodeon, no more Comedy Central, no more MTV, and no more programs on 16 other channels like Spike TV, Logo and CMT.

If the standoff continues, Time Warner Cable subscribers will not get to see Spongebob Squarepants, Dora the Explorer, The Daily Show, The Colbert Report, South Park, MTV videos and programs, and many other favorite shows.

To Viacom, Time Warner Cable has undervalued their shows, even though 20% of Americans' TV time is spent watching Viacom shows. Viacom wants a fee increase of about 23 more cents a month per subscriber, which would average out to a total of $36more million made.



Blogger Jayant said...

This is a very interesting development.The relationship between the content producers and distributors is crucial for TV services. Especially when the ratings are sagging and the advertising revenues are dropping. Can and will Viacom be able to sustain the demand from hundreds of thousands if not millions to stream their shows over the internet? More importantly how will this friction between the two sides affect the viewership be it on television or online? My thoughts are that it would be a losing proposition for both sides. A consensus between the content providers and distributors is imperative as we stand at the threshold of TV 2.0 and all the innovative services and features that are yet to come.

1:24 PM  

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