Elbee
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Statements from Viacom & Time Warner
So who do we believe?
VIACOM:
Statement from Viacom
NEW YORK, Dec. 30 /PRNewswire-FirstCall/ -- The move by Time Warner Cable to force such channels as Nickelodeon, COMEDY CENTRAL and MTV off the air is another example of a cable company overreaching for profit at the expense of its viewers.
The renewal we are seeking is reasonable and modest relative to the profits TWC enjoys from our networks. We have asked for an increase of less than 25 cents per month, per subscriber, which adds up to less than a penny per day for all 19 of MTV Networks' channels.
We make this request because TWC has so greatly undervalued our channels for so long. 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.
Throughout the country, we have negotiated equitable license agreement renewals, or are in the final stages of renewals, with virtually every cable and satellite carrier. Nevertheless, Time Warner Cable has dismissed our efforts at a fair compromise and has effectively chosen to deny its customers some of the most popular TV shows on the air.
As a result, we are sorry to say that for Time Warner Cable customers our networks will go dark as of 12:01 on January 1st, denying Time Warner customers shows like Dora the Explorer, SpongeBob SquarePants, The Daily Show with Jon Stewart, The Colbert Report, and The Hills.
Ultimately, however, if Nickelodeon, COMEDY CENTRAL, MTV and the rest of our programming is discontinued -- over less than a penny per day -- we believe viewers will see this behavior by their cable company as outrageous. Time Warner Cable subscribers who are being handed a January 1st $3 monthly increase in Raleigh, Orange County, Los Angeles, and New York City are simultaneously facing the removal of beloved shows across 19 channels.
We find it a shame that Time Warner Cable remains unreasonable at this time. We hope its leadership will have a change of heart and will seek to negotiate a fair renewal agreement.
SOURCE Viacom
http://news.prnewswire.com/DisplayReleaseContent.aspx?ACCT=104&STORY=/www/story/12-30-2008/0004947904&EDATE=
TIME WARNER:
Statement from Glenn Britt, President & CEO, Time Warner Cable
Re: Viacom’s threats to pull MTV Networks from Time Warner Cable customers, December 31, 2008
Christmas is over, but Viacom is still playing Scrooge, threatening to pull its MTV Networks off of Time Warner Cable at midnight tonight unless we ask our customers to pay exorbitant price increases.
Viacom claims their demands equate to “pennies,” but that is misleading and insulting to our customers, from whom Viacom is trying to extort another $39 million annually – on top of the hundreds of millions of dollars our customers already pay to Viacom each year. That doesn’t sound like pennies to us. Demanding that our customers pay so much more for these few networks would be unreasonable in any economy, but it is particularly outrageous given the current economic conditions.
We sympathize with the fact that Viacom’s advertising business is suffering and that their networks’ ratings have largely been declining. However, we can’t abide their attempt to make up their lost revenue on the backs of Time Warner Cable customers. We’ve negotiated in good faith and made several concessions to help reach a fair and reasonable deal. We’ve asked for an extension of the current contract while we continue to negotiate. But Viacom doesn’t appear to be interested in what’s fair and reasonable for American consumers – they’re only interested in propping up their sagging bottom line, and they are poised to pull their networks from Time Warner Cable customers tonight.
Huge price increases like what Viacom is demanding threaten the ultimate value of cable TV. Time Warner Cable is a retail distributor of products we purchase wholesale. Wholesale programming costs are rising dramatically every year, and, like all multichannel distributors, we have to pass on at least a portion of the increases to our customers. Viacom’s MTV Networks are just a few of the hundreds of channels we carry. If every channel demanded huge, double-digit increases like what Viacom is trying to force our customers to pay, it would be impossible to keep the price of cable reasonable for our customers.
Time Warner Cable has reached hundreds of distribution agreements with other networks. In fact, we currently have deals with every other cable programmer. The negotiations aren’t always easy, but we work hard to reach agreements that are fair to our customers and to both businesses.
We hope Viacom won’t pull the MTV Networks from Time Warner Cable customers, and we’ll negotiate up to the last possible minute and beyond. But ultimately, it is Viacom’s decision. We implore them to join with us to reach a fair resolution or grant an extension, and we hope they won’t carry through with their threat to take their networks away from our customers tonight.
http://www.timewarnercable.com/nynj/statement.html
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Cable Networks affected:
Nickelodeon/Nick at Nite
MTV
VH1
Spike
TV Land
Comedy Central
Noggin
MTV2
VH1 Classic
Logo
Nick Too
Nicktoons
The N
Palladia
Cable channels also affected:
Entertainment On Demand
Kids On Demand
Kids Pre-School On Demand
Lifestyle On Demand
Music On Demand
Message edited 12/31/2008 4:38:01 PM.
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