UPDATE, 11:07 AM: Viacom and others are starting to react to Cablevision’s surprising lawsuit. The programming company says that “at the request of distributors” Viacom and others “have long offered discounts to those who agree to provide additional network distribution.” The company says that these are “win-win and pro-consumer arrangements” that “have been upheld by a number of federal courts and on appeal.” Viacom adds that it will “vigorously defend this transparent attempt by Cablevision to use the courts to renegotiate our existing two month old agreement.”
But Time Warner Cable seems to be cheering for Cablevision. “We frequently have pointed out that there are serious problems with the current programming environment,” the company says. “We think this lawsuit raises important issues, and we look forward to their resolution in the courts.”
PREVIOUS, 8:57 AM: Hold on to your seats. Cablevision filed its antitrust suit in federal court in Manhattan, alleging that Viacom illegally tied deals to offer must-watch channels including Nickelodeon, MTV and Comedy Central to agreements for 14 smaller channels including Palladia, MTV Hits, and VH1 Classic. “The manner in which Viacom sells its programming is illegal, anti-consumer, and wrong,” Cablevision says. “Viacom effectively forces Cablevision’s customers to pay for and receive little-watched channels in order to get the channels they actually want. Viacom’s abuse of its market power is not only illegal, but also prevents Cablevision from delivering the programming that its customers want and that competes with Viacom’s less popular channels.” The suit alleges that Viacom threatened to “impose massive financial penalties unless Cablevision complied with Viacom’s demands.” Cablevision says the practice of selling channels as a package, instead of individually, is a “per se” tying arrangement that violates federal and New York state antitrust laws. It also charges that the practice violates laws against “block booking.” Cablevision wants the court to require Viacom to pay treble damages and legal fees, to bar the network owner from continuing to demand carriage deals, and to let the cable operator have separate deals for the “core” and “ancillary” networks while they negotiate new agreements.
If Cablevision prevails, then it could revolutionize the way pay TV services are sold: Distributors have long complained that programmers force them to lard their lineups with networks that few people watch but that raise everybody’s costs. The problem has become especially acute over the last few years as broadcasters have demanded rising retransmission consent payments, and major programmers have struck extravagant deals for sports rights with the expectation that they’ll recoup the outlays by raising the fees they charge distributors. Cablevision is one of the few operators that has advocated a la carte pricing.


So, does this mean Cablevision subscribers can sue Cablevision for bundling cable channels they don’t watch and are forced to pay for because Cablevision won’t offer individual channels ala cart, abusing it’s market power as often the only cable tv provider in a given city?
How about addressing the real problem – cable forcing customers to pay for expensive sports channels even if they never watch sports? That’s what’s driving costs thru the roof for everyone. Anyway I already switched to the no- sports a la carte option, it’s called Netflix. Eventually all TV will go a la carte since technology allows it and consumers want it.
Ever since learning about the Paramount case in film history class last summer, I have wondered why a cable company hasn’t filed a case like this against the media companies. I am very interested in seeing how this case unfolds. Please keep me informed on its progress. Thanks Deadline!
I can see this as a new step in honing down viewing to only the top producing shows,products, and making anything different hard to make or find. I personally would love it if we had more of a choice concerning the deluge of sports channels….give me the option of not paying for or receiving any of them if you please!!!!
I’m hoping Cablevision wins; maybe then Dish, Direct TV and the rest can pry ESPN and all sports channels away from the rest of the entertainment channels. If sports viewers want to pay for sports let them pay the full value of the channel instead of passing part of the cost on to everyone else. I know I’m being charged $5 more per month just because of ESPN alone.
I don’t work in the cable or broadcasting end of the business but I have always had an interest in this sort of thing. And so I say…
FINALLY!
Finally somebody has finally grown a pair enough to call out studios for block booking. Block booking has been illegal FOREVER but nobody has dared to call out the studios on it until now. Hopefully this is the beginning of the end of paying thousands a year for channels people NEVER watch and the long overdue beginning of a la carte pricing or something resembling it.
This sick exploitation/blackmail of retransmission consent/must carry was stupid and anti-consumer from day one. George Bush the first vetoed it and his veto was overturned.
If Cablevision prevails, then many channels will die. But that’s okay because do we really need 5 ESPNs? Do we really need to pay for twelve channels that maybe have one program each that people watch surrounded by hours of reruns that are owned by
the same corporation when we could have one or two that have 5 or 6 shows worth seeing instead?
And Yes studios/broadcasters will be shitting their pants but they deserve it. They have been arrogant bullies with this issue and then they tell the consumers its the big bad cable companies screwing them out of shows. What a joke. Well pride comes before the fall this time doesn’t it Viacom? Hope you’re happy now. If you could have been a tad more reasonable about negotiating but NO you got greedy Hope strong arming us all into paying more to see Snooki parade around was worth it because now you’ll get the blame for derailing the retransmission gravy train. A bonus for all who hate Sumner Redstone. Thanks for playing!
It’s not like cable companies aren’t evil but their biggest evil is price. It’s time someone took a stand…a stand which they’re not necessarily taking for the good of humanity as opposed to profits but still…everyone will benefit from victory in this. I can’t wait for this trial. To Cablevision I say… Don’t settle Cablevision. Don’t you fucking dare.
Even if “many channels die” there will be many more flourishing on YouTube and internet streaming. AMC just threw their hat in the streaming ring. That’s the right place for the nichey stuff. Evntually it will all be nichey stuff, from pricey House of Cards to no cost funny cat videos.
Bring it on. Most cat videos are better than what’s on a lot of channels anyway.
And more popular. I look forward to a world where I can watch House of Cards or Epic Rap Battles of History or a cat who adopts a deer – whatever suits my whim!
Good for you for calling this what it is: block booking. Block booking was made illegal by the Supreme Court in 1948 and you just know that it’s going to take similar legal action to get the cable companies to discontinue the practice.
“at the request of distributors” Viacom and others “have long offered discounts to those who agree to provide additional network distribution.” The company says that these are “win-win and pro-consumer arrangements” that “have been upheld by a number of federal courts and on appeal.” Viacom adds that it will “vigorously defend this transparent attempt by Cablevision to use the courts to renegotiate our existing two month old agreement.”
Pro consumer? Win win? That’s rich. Nice try Viacom. Perhaps if you didn’t include in your statement that your deals have held up in court. If “we got away with it before” is your only defense, then you’re toast.
The simple and fair solution (one Viacom likely won’t like) is to give the cable and satellite companies (and their subscribers) the option to opt in for “Viacom Basic”, which would include:
MTV
MTV2
Nickelodeon
VH1
Spike
TV Land
Comedy Central
BET
And “Viacom Premium” or “Viacom Extra” which would include:
Centric
CMT
MTV Hits
MTV Tr3s
Nick Jr.
Nicktoons
Palladia
Teen Nick
VH1 Classic
VH1 Soul
Logo*
CMT Pure Country**
Nick 2**
That said, the law of unintended consequences might rear its head and bite the very company that is filing this suit. Does Cablevision really want to open Pandora’s Box and set a precedent for a la cart or pay-as-you go subscription models? If Cablevision is able to pick and choose what channels it wants to carry/pay licensing fees for, then shouldn’t I as a subscriber get to tell them which channels I want to pay for and which ones i don’t, rather than being subject to their “unfair” bundling options? What’s good for the goose, after all, is good for the gander, no? Just sayin’…
Just give me the channels I want, I don’t mind paying for just them…