Time Warner Cable and Viacom agree on fees

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LOS ANGELES — 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.

___

AP Business Writer Deborah Yao in Philadelphia contributed to this report.

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{"commentId":4608398,"authorDomain":"mfk"}

a penny here a penny there and look were we are now, lets go get the littlr guy when our pay goes down. when the little guy get his?

{"commentId":4608398,"threadId":"457059","contentId":"2260460","authorDomain":"mfk"}
    Reply#1 - Wed Dec 31, 2008 12:01 AM EST
    {"commentId":4608931,"authorDomain":"kikaiju"}

    Until cable and satellite carriers allow us to pay for the channels we want and ONLY those channels, Viacom and the others will continue to force-feed all these channels that some people don't want yet we all have to pay for.

    I don't want any Viacom channels and would gladly give them up. No worries. Pass the savings along, thanks.

    {"commentId":4608931,"threadId":"457059","contentId":"2260460","authorDomain":"kikaiju"}
      Reply#2 - Wed Dec 31, 2008 1:13 AM EST
      {"commentId":4610258,"authorDomain":"glory1971"}

      If no fear for the little kids,the kids don't understand what happen and you guys tray to take this entretaiment out....Think in the future...If just money?....Pleaseeeeeee...

      {"commentId":4610258,"threadId":"457059","contentId":"2260460","authorDomain":"glory1971"}
        Reply#3 - Wed Dec 31, 2008 8:02 AM EST
        {"commentId":4610274,"authorDomain":"pclark9"}

        I think Viacom has over estimated their standing in the world.  I wish my cable company would be like Time Warner and get rid of them too.  I do not watch any of the channels they listed, except every once in a while, CMT.  I 100% believe that MTV has become very raunchy over the years and the same with Nickelodeon, they are not caring what they put on for our kids to watch and my kids are not allowed to watch those channels. 

        I also agree with kikaiju, why cant we pick the channels we want.  It would be so much more effective if we could pick the channels we want.  I do not like having 10 sports channels or 15 news channels on my tv.  There are so many channels I have never watched and will never watch, I have to speed through them to get to what I want. 

        These big companies that are sitting back in their big houses, while we sit struggling paying their way in life, do not care about us and I think it is time we all stood up and told them all what we think.  They need to start thinking about us especially now. 

        {"commentId":4610274,"threadId":"457059","contentId":"2260460","authorDomain":"pclark9"}
          Reply#4 - Wed Dec 31, 2008 8:05 AM EST
          {"commentId":4613356,"authorDomain":"jamescindymarshall"}

          I really don't care one way or the other except, the only reason we have cable is for the kids and l need at least of channel of nick or noggin! I don't want to pay for all the other crap though! Its not fair!

          {"commentId":4613356,"threadId":"457059","contentId":"2260460","authorDomain":"jamescindymarshall"}
            Reply#5 - Wed Dec 31, 2008 12:40 PM EST
            {"commentId":4613553,"authorDomain":"carlthompson427"}

            It is really the federal government requiring so much of certain types of programming. When I first subscribed to satellite TV I had everything and was happy.  I had the networks from east coast to west coast. I was not able to get local networks well with an antenna so I was happy. Then came the federal government, they took my subscribed networks away due to over regulation.  I was very upset.  As for MTV, VH1 and some of the other programming they listed, my kids love Sponge Bob.  I haven’t really watched MTV since the 80's when they started with all the freak show rap programming, cribs and all the other all hip-hop gangsta crap. Then along came VH1, I enjoyed that until it got infected with the same MTV diseases. So if I never see them again I really don’t care, they can all fold and ill still keep breathing.  Government interference and bleeding heart fairness BS is why you have the programming you have as well as your bill being what it is.

            {"commentId":4613553,"threadId":"457059","contentId":"2260460","authorDomain":"carlthompson427"}
              Reply#6 - Wed Dec 31, 2008 12:55 PM EST
              {"commentId":4613673,"authorDomain":"thealfer"}

              I think this is pure bull.

              All these channels are commercial sponsored and on top of that they have the "promo bugs" (I believe they are called you know those captions that take up a third of the screen to advertise another show).

              And they want us to pay to watch them!!!!!

              These channels should be happy they are carried so people will see their advertisements. If they want fees they should end all intrusive advertisements during the show and put all commercials at the end of the programs so we are not interrupted.

              I say let don't pay any fees. Let them go dark and we'll see what their commercials are worth as viewership declines!

              {"commentId":4613673,"threadId":"457059","contentId":"2260460","authorDomain":"thealfer"}
                Reply#7 - Wed Dec 31, 2008 1:02 PM EST
                {"commentId":4613714,"authorDomain":"carlthompson427"}

                I agree 100%

                {"commentId":4613714,"threadId":"457059","contentId":"2260460","authorDomain":"carlthompson427"}
                  #7.1 - Wed Dec 31, 2008 1:05 PM EST
                  Reply
                  {"commentId":4615539,"authorDomain":"wendy-notarnicola"}

                  Nooooooooooooo! Not my Sponge Bob!  Mister CrAAAAaaaaAAAAAABS!!!!!

                  {"commentId":4615539,"threadId":"457059","contentId":"2260460","authorDomain":"wendy-notarnicola"}
                    Reply#8 - Wed Dec 31, 2008 3:03 PM EST
                    {"commentId":4617743,"authorDomain":"patricianelson"}

                    Am I missing something?  Did Time Warner alert their customers before today, the day of the "blackout?"  I think this is poor customer concern!!!!!!! I do watch two of the channels that will be blacked out, and I will not be able to see some anticipated upcoming shows scheduled for VH1.  I wish someone would answer me seriously though about whether an alert was sent out in the bill and I missed it. 

                    This is just Time Warner's weak way of not telling their customers so that they won't lose business.  And to do it on New Year's Eve when you won't be able to contact them on New Years Day is "chicken."  More than that the 800 number given on VH1 today wasn't being answered by a human.  I called every number I could find for Time Warner and they were all on fast busy.  T.W. wasn't taking any calls today, even from those who were experiencing technical difficulty with their cable.  How "chicken" is that.  Poor customer service.  I'm not happy and I will be seeking out another cable company.  If I have to pay, I may as well get what I want.   

                    {"commentId":4617743,"threadId":"457059","contentId":"2260460","authorDomain":"patricianelson"}
                      Reply#9 - Wed Dec 31, 2008 6:40 PM EST
                      {"commentId":4619441,"authorDomain":"mediazerm"}

                      In Syracuse, New York we are closer to the Canadian Border than we are to Chicago. Why did Time-Warner take away our only source for Canada News (CKWS-TV the CBC Affiliate in Kingston Ontario)??

                      {"commentId":4619441,"threadId":"457059","contentId":"2260460","authorDomain":"mediazerm"}
                        Reply#10 - Wed Dec 31, 2008 11:11 PM EST
                        {"commentId":4619448,"authorDomain":"mediazerm"}

                        SpongeBob isn't going anywhere... and Sarah Palin can see Bikini Bottom from her house. -mZ

                        {"commentId":4619448,"threadId":"457059","contentId":"2260460","authorDomain":"mediazerm"}
                          Reply#11 - Wed Dec 31, 2008 11:12 PM EST
                          {"commentId":4621081,"authorDomain":"ginnv"}

                          I have alot of problems with Time Warner, I get my cable/phone/internet from them. And they added an increase to January's bill already by $6.99 the charges were listed as Digital Equipment, When I called TWC they said they are increases their prices, So I guess they seen this forthcoming problem with Viacom and started charging customers for the increases they have to pay. I agree 100% the programming sucks. I wish they still had Good Sitcoms Again and not so many Reality Shows and Drama. I say Give the People what they want, We pay for it. They need to come up with Packages that people can "Build" their own Channel Lineups and shows. And not just accept what they give us..

                          {"commentId":4621081,"threadId":"457059","contentId":"2260460","authorDomain":"ginnv"}
                            Reply#12 - Thu Jan 1, 2009 8:44 AM EST
                            {"commentId":4652538,"authorDomain":"mfk"}

                            get your outside antena's ready for feb17 and call your cable com quite them, only then we'll they see that WE ARE MAD AS HELL AND NOT GOING TO TAKE IT ANY MORE!

                            how about all of us trying that?

                            {"commentId":4652538,"threadId":"457059","contentId":"2260460","authorDomain":"mfk"}
                              #12.1 - Sat Jan 3, 2009 9:06 PM EST
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