Updated January 01, 2009
Time Warner Cable and Viacom Reach Deal, Avoiding Channel Blackout
Associated Press
LOS ANGELESTime Warner Cable Inc. said Wednesday it reached a deal with Viacom Inc. on carriage fees, avoiding a blackout of 19 cable channels including MTV and Comedy Central.
There's no need to cry, Dora.
The programmer Viacom and Time Warner Cable agreed on compensation that preserved access for the cable system operator's 15.7 million subscribers to Dora's Nickelodeon network, MTV and 17 other channels.
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 "Dora the Explorer," "SpongeBob SquarePants" and "The Colbert Report" for Time Warner Cable customers.
Terms of the deal were not disclosed. Details must still be finalized over the next few days, the companies said.
"We are pleased that our 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."
Viacom Inc. 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.
Time Warner's 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.
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.
The latest 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.
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.
Latest Entertainment Video
-
-
Marvin's Minute: 11/23
-
Nov 23, 2009
J-Lo takes a tumble, Taylor Swift wins all
-
-
-
End of an Era
-
Nov 20, 2009
Oprah announces end of talk show
-
-
-
'Dynasty'
-
Nov 17, 2009
Two Olympic skiers featured in film
-
-
-
Paula Deen
-
Nov 16, 2009
Thanksgiving cooking tips
-
-
-
'Georgia on My Mind'
-
Nov 16, 2009
The Little Rockers perform a classic
-
-
-
Marvin's Minute: 11/16
-
Nov 16, 2009
Your daily entertainment news hit
-
MOST ACTIVE IN ENTERTAINMENT
Most Read
Most Commented
-
Larry David Blasted for 'Curb' Episode Where He Urinates on Jesus Painting
October 28, 2009 1,370 comments
-
Lou Dobbs Quits CNN in Surprise Announcement
November 11, 2009 229 comments
-
Oprah Winfrey Tells Audience Her Show's 'Yellow Brick Road' Is Coming to an End
November 20, 2009 96 comments
-
'Sesame Street' Ombudsman Says Fox News Parody 'Should Have Been Resisted'
November 06, 2009 83 comments
-
Parental Advocacy Group Slams CW's 'Gossip Girl' for Intense Sexual Imagery
November 05, 2009 58 comments
-
Rosie O'Donnell Does Not Enjoy Being Single
November 24, 2009
-
Courteney Cox Returning to Cougar Town Set
November 23, 2009
-
Khloe Kardashian Never Brought a Boy Home Before Lamar
November 24, 2009
-
New Moon Mania: What's Next for the Cast?
November 24, 2009
-
Kelly, Mya and Donny Shine in Final Dancing Performances
November 24, 2009
-
Rosie O'Donnell Does Not Enjoy Being Single
November 24, 2009
-
Courteney Cox Returning to Cougar Town Set
November 23, 2009
-
Khloe Kardashian Never Brought a Boy Home Before Lamar
November 24, 2009
-
New Moon Mania: What's Next for the Cast?
November 24, 2009
-
Kelly, Mya and Donny Shine in Final Dancing Performances
November 24, 2009
-
Photog: Michael Jackson Fans Beat Me
November 24, 2009
-
Another Black Eye for Notre Dame
November 24, 2009
-
Jon & Kate Must Answer to Water Board
November 24, 2009
-
La Toya on Dr. Murray -- Don't Hire the 'Murderer'
November 24, 2009
-
Kirk Cameron -- Mauled by a Bruin in Darwin Fight
November 24, 2009
-
X17 XCLUSIVE - Kate Bosworth and Alex Skarsgard's Hot Movie Date
November 23, 2009
-
Chaz Bono Says Sex Change Was The "Best Decision I've Ever Made"
November 20, 2009
-
Madonna Wore Bullet-Proof Vest In Brazil
November 20, 2009
-
Robert Pattinson Admits He And Kristen Are Engaged!
November 19, 2009



recommend


Subscribe to Comments






