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friendfeedThe Viacom vs. Time Warner Smoke Blowing Contest
Wednesday, December 31st, 2008
by Jeff
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You’ve probably heard by now that Time Warner Cable is butting heads with Viacom, owner of television networks like MTV, VH1, Nickleodeon and Comedy Central. Viacom has said it wants to increase the rate that Time Warner has to pay in order to carry their channels. Time Warner refuses because it’s just too much of an increase, one that they will have to pass on to their subscribers. Viacom then says, fine. If you don’t pay the higher fees, you can’t carry these networks anymore.
It’s like watching two children fight. Viacom wants to charge more for Time Warner to play with its toys, and when Time Warner says no, Viacom threatens to just take their toys and go home. Now both of them are going to mom (the cable customers) and pointing at the other saying “It’s his fault!” It’s all pretty silly.
Here’s the quote on Viacom’s website:
At the expense of its customers, Time Warner Cable is moving to force Viacom channels such as Nickelodeon, COMEDY CENTRAL and MTV off the air.
Wow that’s harsh. This is from Time Warner’s corporate site:
MTV Networks wants our customers to pay millions more. They are currently demanding price increases that are nearly triple the rate of increase under our current agreement. These increases would be excessive even in a strong economy, but given the current conditions, it’s simply not fair to our customers.
Customers will pay millions more if you count all 13 million of them. In reality it’s not nearly that extreme.
It’s all just pretty childish finger pointing if you ask me.
Here’s what I think is happening. Ad revenue is down along with the economy, so Viacom found a new way to make up the difference. Increase their rates excessively so Time Warner is forced to charge their consumers making up for Viacom’s deficit.
Time Warner takes the stand of protecting their customers from a rate increase. Forget the fact that they increase their rates every single year at this time and offer you 20 channels you have no interest in just to get the one channel you can’t live without.
I’ll be surprised if at midnight tonight all of a sudden these channels turn to static. Neither side can afford to live without the other. Viacom can’t afford to pull their channels and lose 13 million households. Neither can Time Warner afford to lose customers to satellite TV where these channels will still be carried. Someone will blink first.
So don’t panic. The Daily Show, Yo Gabba Gabba!, and crappy reality shows will still be there tomorrow. If I’m wrong and they’re not, you can always get your fix online. The majority of the popular shows on these networks are available on iTunes, the Xbox Marketplace, or for free on the network’s websites.
Fight all you want you two. I’ll still be watching either way.
UPDATE:
(AP) – At 12:01 AM, on New Years Day, Time Warner customers found themselves able to watch their regular Viacom owned channels such as Nickelodeon, MTV, and Comedy Central. According the the Associated Press the two companies extended the deadline by an hour which helped them make the deal. Details of the agreement have not been released at this time.
Told ya.
The episode before the big finale, and Dexter is having second thoughts. He actually has a kind of heart to heart with Doakes and is all set to turn himself in. Doakes of course thinks this is great and is all set to help Dexter when he goes to the police. Of course he is, because that means he won’t be framed for Dexter’s crimes.