Seems they’re considering just that — with Time Warner Cable weighing the possibility of buying the Barry Diller-backed streaming video company — Bloomberg reports today, citing unnamed sources. Aereo uses thousands of tiny antennas to pick up local TV signals that it streams to its subscribers without paying broadcasters a dime. If the cable and satellite companies followed through, it could create a nightmare for broadcasters. TV station owners likely will collect $3B this year from cable and satellite company retransmission consent payments, and the amount is expected to double during the next five years. By 2015 the payments could account for 24% of CBS’ cash flow, 11% of Fox’s, and 3% of Disney’s, Guggenheim Partners’ Michael Morris predicted this week. Much of that revenue could evaporate if cable and satellite companies replicated Aereo’s model. No wonder the major TV station owners have asked several courts, including the U.S. Supreme Court, to rule that the service infringes on their copyrights. (Aereo says it merely leases consumers the kind of equipment they could use to watch and stream TV at home for free.)
This was an important part of the controversial $3.6B deal that Verizon cut in late 2011 with Comcast, Time Warner Cable and other cable operators. The cable guys ditched their plans to create their own wireless phone …
Ovation will be back on Time Warner Cable and Bright House Networks systems and has committed to carry 200 or more hours of original programming dedicated to the arts in 2014, 250 hours in 2015 and 300 each year after. The arts-focused network was the guinea pig for TWC boss Glenn Britt’s plan to drop poor-performing networks as a way to control costs, dumping the arts-focused network when its previous carriage contract expired at the end of 2012. “Ovation is among the poorest performing networks, and is viewed by less than 1% of our customers on any given day,” the No. 2 cable operator said when it announced it was cutting off Ovation. “We’ve paid more than $10 million in carriage fees to Ovation over the past several years. They’ve had ample opportunity to improve the ratings and the content, and have failed to deliver.” One of TWC’s biggest beefs with Ovation was the lack of original programming. But the network has learned its lesson since: the commitment to the original hours comes after it launched an in-house production studio Ovation Studios. Among the new offerings will be a James Franco-hosted series James Franco Presents which premieres next month.
Time Warner Cable Reaches Distribution Deal With Univision That Includes El Rey Network And Local News
The agreement will make the No. 2 cable operator and Bright House Networks among the first distributors to have filmmaker Robert Rodriguez’s English-language entertainment channel, El Rey Network, when it launches this year. “Time Warner Cable’s …
NEW YORK, OCTOBER 7, 2013 –Time Warner Cable Inc. (NYSE:TWC) today announced that it has entered into a definitive agreement with Duke Energy Corporation and investment funds managed by Alinda Capital Partners to buy DukeNet Communications, LLC for $600 million in cash, including the repayment of debt.
DukeNet, based in Charlotte, N.C., is a regional fiber optic network company serving customers in North Carolina and South Carolina, as well as five other states in the Southeast. With a fiber optic network of over 8,700 miles, DukeNet provides data and high-capacity bandwidth services to wireless carrier, data center, government, and enterprise customers. Duke Energy owns 50 percent of DukeNet. The Alinda investment funds own the remaining 50 percent.
U.S. Congressman Henry Waxman (D-Calif) wonders why a Time Warner Cable lobbyist is emailing Republicans in the House and Senate, telling them “next time you think about helping broadcasters” they should first read a Weekly Standard article taking NBC News to task for its weeklong look at the Affordable Care Act. “Could you please explain why this email was sent and what purpose it serves?” Waxman, the ranking member of the House Energy & Commerce Committee, said this afternoon in a terse letter addressed to TWC CEO Glenn Fritt.
The Weekly Standard article to which the unnamed lobbyist linked was called “NBC Launches Week of Programming to ‘Help’ Obamacare Succeed.” The Weekly Standard appears to have looked askance at an announcement NBC News emailed around last week – we got a copy too – detailing plans for this week’s “Ready or Not, the New Healthcare Law” — a “multi-screen experience to help Americans get the most out of the Affordable Care Act.” NBC’s coverage included results from a Kaiser Family Foundation poll, conducted in conjunction with NBC News, that details public opinion and awareness about the ACA. And, NBC Nightly News aired an interview between NBC News’ Chief Medical Correspondent Dr. Nancy Snyderman and Health and Human Services Secretary Kathleen Sebelius. “Doctors, nurses, employers and patients all have a stake in how the Affordable Care Act will play out,” said Snyderman. “The sweeping federal law is confusing. We will clarify parts of the law, explain how states differ and tackle many of the challenges associated with it. We are committed to answering questions and serving as a guide as this legislation is implemented.”
Liberty Media’s John Malone and other execs are pounding the drums for cable and satellite companies to merge — in part to help hold down their rising programming costs. You’d expect outlays to …
“You will see at our third quarter earnings that there was no harm done to CBS Corporation,” the company chief told investors at Bank of America Merrill Lynch Media, Communications and Entertainment Conference …
COO Rob Marcus — who’ll become CEO at year’s end — didn’t want to be specific. But he told investors at the Bank of America Merrill Lynch Media, Communications and Entertainment Conference that …
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CW In Talks For ‘Wizard Of Oz’ Drama By ‘Heroes” Creator Tim Kring
By Nellie Andreeva - EXCLUSIVE: The summer of Wizard Of Oz continues with another sale of a high-profile Oz-themed drama project.
Ryan Seacrest Booed By Broncos Fans During NBC’s NFL Pregame Show: Video
By Lisa De Moraes - NBC continues its Overexposing Ryan Seacrest campaign — this time the network had The Man Who Can’t Say No open NBC’s regular-season NFL football franchise kickoff last night, in which he got loudly booed by Broncos fans in Denver’s Sports Authority Stadium.
Were Consumers The Biggest Losers In The CBS-Time Warner Cable Dispute?
By David Lieberman - It sure looks that way. Millions of Time Warner Cable customers lost CBS-owned stations and channels for a month, and will still probably see their monthly rates rise to accommodate the deal that the companies made last night.
Fired ‘Storage Wars’ Star Scores A Win Over A&E In Lawsuit
By Dominic Patten – Dave Hester can move forward with the wrongful termination portion of his wide-ranging lawsuit against A&E and the producers of Storage Wars, a judge ruled today.
Listen to (and share) episode 49 of our audio podcast Deadline Big Media With David Lieberman. Deadline’s financial editor and host David Bloom talk about winners and losers in the CBS-Time Warner Cable deal to end the month-long blackout; the “venture capital” fund pulled together by Irving Azoff and Jim Dolan to try to grab the next big thing in entertainment; whether Real-D’s share-price problems mean 3D is in trouble; and what Hollywood legacy can Microsoft claim now that Steve Ballmer is stepping down as CEO.
The CBS chief rejects Time Warner Cable’s view that networks have too much power to win big price increases in pay TV carriage negotiations, and Washington should help level the playing field. “These deals should be made in the free market,” Les …
It sure looks that way. Millions of Time Warner Cable customers lost CBS-owned stations and channels for a month, and will still probably see their monthly rates rise to accommodate the deal that the companies made last night. But what did you expect? Since August 2, when CBS stations, Showtime and other channels went dark on TWC systems, virtually everyone knew that the distributor would have to cry “uncle” before the NFL season begins. Although the companies are tightlipped about the terms of their new deal, that seems to be what happened. CBS’ Les Moonves signaled to everyone that he believes he prevailed on the financial terms. “We are receiving fair compensation for CBS content and we also have the ability to monetize our content going forward on all the new, developing platforms that are right now transforming the way people watch television,” he says. No wonder investors have sent the broadcaster’s shares +4.3% in mid-day trading vs a 1.2% increase for TWC.
The cable company’s believed to have been paying around 55 cents per month for each subscriber who receives a CBS-owned station. Under the new deal, the cable company’s outlays will rise to $1.50 in 2014, and $1.90 in 2016, Davenport & Co analyst Michael Morris estimates. TWC also will pay higher amounts to offer CBS programming on VOD and digital platforms including its TV Everywhere offering. Wells Fargo’s Marci Ryvicker says that CBS even could receive retroactive payments for the last month which is “rare when stations go dark.” All told, the deal will be “a positive catalyst for CBS and broadcast,” Ryvicker says.
2ND UPDATE, 3:20 PM: Time was not on Time Warner Cable‘s side with the NFL season looming. It looks like CBS got the big increase that it wanted but TWC was able to retain most if not all of the digital rights it was offered. It also picked up new rights to Showtime Anytime and VOD, which were not previously available to TWC subscribers. Said FCC Acting Chairwoman Mignon L. Clyburn on the end to the TWC-CBS content carriage dispute: “I am pleased CBS and Time Warner Cable have resolved their retransmission consent negotiations, which for too long have deprived millions of consumers of access to CBS programming. At the end of the day, media companies should accept shared responsibility for putting their audience’s interests above other interests and do all they can to avoid these kinds of disputes in the future.”
UPDATE, 2:40 PM: CBS Corp. head Les Moonves informed employees of the pact Monday evening:
I am pleased to inform you that this evening we concluded our content carriage agreement with Time Warner Cable. Effective immediately, CBS will be back on the Time Warner Cable systems in New York, Los Angeles and Dallas, and Showtime will be available to their subscribers across the nation. All other disruptions to our viewers will cease, and things will go back to normal, with a new and beneficial agreement in place.
If you missed Deadline’s top TV stories, check them out:
Harry Connick Jr To The Rescue? Crooner In The Mix For ‘American Idol’ Judge
By Nellie Andreeva – EXCLUSIVE: He is a self-professed big fan of American Idol who has done two very well-received stints as a guest mentor on the Fox singing competition …
The battle of Boston continues. Just more than two weeks after Aereo slammed Hearst-owned WCVB-TV for its July 10 copyright suit and injunction request against the Barry Diller-backed streaming video service, the plaintiff has returned fire. In a 12-page reply (read it here) filed Friday in federal court in Massachusetts, the ABC affiliate says Aereo “engages in a technological shell game to avoid the plain wording of the Copyright Act.” Last week’s filing once again asks the court to grant a preliminary injunction shutting Aereo down in Boston, where it debuted at the end of May. In its August 7 opposition to the initial complaint, Aereo said that it is not infringing anyone’s copyright but simply providing an antenna and remote DVR service to customers for broadcasts that consumers already get for free. The streaming service also noted that the claims of WCVB-TV were very similar in nature and kind to the unsuccessful NYC-based attempt by broadcasters that the Second Circuit affirmed in April. That case is now back in District Court while Aereo has expanded from its first site in NYC to Boston, Atlanta, Utah, Chicago and Houston, Dallas and Miami next month.
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Jimmy Iovine Out Of ‘America Idol’, Randy Jackson Poised To Replace Him As Mentor
By Nellie Andreeva - EXCLUSIVE: The sweeping changes on Fox’s American Idol continue.
Disney’s Next Teen Star? Disney XD Greenlights Two Pilots Starring Jacob Bernard
By Nellie Andreeva - EXCLUSIVE: Disney …