Cable company vs. ABC - Tilted Forum Project Discussion Community

Meditrina · 03-02-2010, 11:41 AM

This morning when I turned on my TV, there was a message from the cable company saying that they were in negotiation with ABC and that if they don't agree on something, ABC will no longer be aired on our cable. cable company memo

Quote:

# ABC is threatening to pull the plug on WABC-7 unless Cablevision and its customers agree to pay millions of dollars in new fees. Cablevision has asked ABC to continue delivering WABC-7, but instead ABC is holding Cablevision customers hostage by threatening to pull its programming.
# In these difficult and challenging economic times, it is not fair for ABC to force Cablevision and its customers to pay what amounts to a new TV tax for the same programming that is available today for free over the air and on the Internet.
# Cablevision already pays ABC's parent company more than $200 million per year to carry its channels; now ABC wants a 20 percent fee increase for exactly the same programming.
# It is wrong for ABC to demand $40 million in new fees to help pay the salaries and bonuses for top ABC executives.
# Cablevision has tried in good faith to reach a fair agreement with ABC. In fact, top Cablevision executives traveled to ABC offices in California earlier this month, and had lengthy face-to-face meetings this week in Bethpage and New York City. We have made numerous proposals, all of which have been rejected.

They make it sound like ABC wants $40 million from them, or they will stop airing on Cablevision.

Then you go to ABC7 site and it sounds totally opposite. ABC7

Quote:

Thank you for helping to make ABC7 New York's favorite television station. We work hard to earn your support every day by bringing you the best in local news, community affairs and top-quality entertainment programming.

Unfortunately, as of March 7th, ABC7 may no longer be carried on Cablevision systems.

For the past two years we have tried, without success, to reach an agreement with Cablevision to carry ABC7. Why? Because Cablevision's position is that ABC7 is worth little to nothing to its business and its proposed offers have been consistently unreasonable and unrealistic.

In fact, ABC7 delivers some of the most popular programming carried on Cablevision today, shows like LOST, Grey's Anatomy, Jeopardy, Dancing with the Stars, Wheel of Fortune, Desperate Housewives, General Hospital, Regis and Kelly, Modern Family, The Academy Awards, The Oprah Winfrey Show and Eyewitness News.

We think these shows are valuable. And your bill shows that Cablevision must agree, since you already pay for ABC7 as part of your Broadcast Basic Tier – a service for which, as a Cablevision customer, you pay as much as $18 each month.

What your bill doesn’t show is how much Cablevision pays us for these programs.

The answer: They Pay Nothing. That’s right...Cablevision charges you for ABC7 and then keeps ALL the money.

We will continue to work with Cablevision to reach a fair agreement, but regardless of the outcome, ABC7 is available to you through a variety of other providers, including Verizon FiOS, AT&T U-verse and DIRECTV, and, as always, FREE over-the-air.

I am so confused. How can you tell which one is telling the truth? I hear people talking about it around the office, they either side with ABC or the cable company. How can you decide which one to side with if you don't know which one to believe?

snowy · 03-02-2010, 11:51 AM

Here's the AP's article on the situation:

Quote:

The Walt Disney Company on Monday warned Cablevision subscribers in New York that the local ABC station signal may go dark this weekend in a dispute over how much it is paid.

If the fight is not resolved, the station could go dark after midnight Saturday, affecting 3.1 million Cablevision customers’ ability to watch the Academy Awards on Sunday on ABC. The signal can still be pulled from the air by homes with an antenna and a new TV or digital converter box.

Disney is seeking $40 million a year in new fees, Charles Schueler, a spokesman for Cablevision, said in a statement. Cablevision pays more than $200 million a year to Disney.

The dispute involving WABC-TV is similar to the standoff at the end of last year between the News Corporation and Time Warner Cable over how much Fox station signals were worth. That tussle, which threatened the college football bowl season, was resolved without an interruption.

Disney said it began alerting Cablevision watchers to the impasse in ads Monday night.

The company’s previous contract with Cablevision expired more than two years ago, but the companies extended it month by month as talks continued.

Under previous arrangements, Disney was paid for cable channels like ESPN and Disney Channel, but did not charge for its ABC broadcast signal.

How do you know who to believe? Sometimes you just have to keep searching for evidence until you can make a judgment one way or the other, and sometimes...things are gray.

Meditrina · 03-02-2010, 12:03 PM

Thanks Snowy. So what I get from that is Cablevision currently does pay Disney but not for ABC. Now Disney wants money for that part of their programming. Cablevision thinks they already pay enough.

I am already paying for ABC with basic cable but I guess Cablevision is keeping that money for themselves. I see a future increase in my cable bill coming...

Maybe it's time to look into a dish network, or FIOS.

Glory's Sun · 03-02-2010, 12:25 PM

This happens every 3 or 4 months, but you never know about it until the cable company thinks it's just too much.

Television companies are bleeding money and need every avenue of revenue possible. Disney is just wanting to get their money for ABC.

as far as Cablevision keeping the money to themselves, all companies do this. They receive anywhere from $1-$4 per subscriber while only paying out $.15-$.75 per subscriber to the stations.

So if the deal with ESPN was $.75/subscriber, the cable company will charge the subscriber $2-3 for access to ESPN. I think around here Time Warner is actually getting $5/subscriber for ESPN while paying out $1/subscriber.

I left cable a few months ago and went to Directv and couldn't be happier. (meh to Dish Network.)

rahl · 03-02-2010, 06:01 PM

I absolutely HATE cable companies. I currently have Timer Warner. I can't leave them because I bundle everything together(phone, internet, tv) and if I left them and paid for everything seperate I'd pay even more than I am now. It started out 5 years ago at $97.00. It's now $143.79. Every now and then they'll raise the price WAY too high and I have to call and threaten to leave if they don't drop the price. They always come down alot but it's still quite rediculous.

Pearl Trade · 03-02-2010, 06:13 PM

I reccomend the good 'ole Dish Network. I will admit that DirecTV has some good stuff on it, though. It's all basically the same, but I wish I could see the Dan Patrick Show and Friday Night Lights.

Meditrina · 03-02-2010, 06:17 PM

Quote:

Originally Posted by guccilvr

as far as Cablevision keeping the money to themselves, all companies do this. They receive anywhere from $1-$4 per subscriber while only paying out $.15-$.75 per subscriber to the stations.

I realize that companies need to make a profit, and that goes for the cable company as well as Disney. Who is to say that the cable company is already paying Disney enough or not? It seems like a no win situation, at least for the customers. If Cablevision does not pay, we lose ABC; if they do pay, we get an increase in what we pay.

Apparently, FIOS is not in my area, so my only other choice is DirectTV. But then where will I get my internet and my phone from? I don't think DirectTV offers any kind of package deal. So I guess I am stuck. Eh, I can always raise the rent if they raise my cable bill. My tenants use my cable and my internet, included in the rent.

MSD · 03-02-2010, 06:33 PM

Cablevision provides what is unquestionably the best internet service in the tri-state area. When it comes to TV, we get shafted with terrible cable boxes and questionable signal quality that they claim is normal. All you have to do is to look as MSG and the teams Cablevision owns. They don't give a shit if the Rangers win the cup, they just want at least one round of playoffs revenue. Same for the knicks.

I have little doubt that Cablevision will continue the dick waving contest with broadcasters and add the measurements of each and every customer's dick to their own to try and overpower them. Worst case, I lose a channel I don't really watch anyway.

ASU2003 · 03-02-2010, 08:50 PM

Newegg.com - TERK HDTVi Directional indoor UHF/VHF HDTV antenna

For the price of one month of cable, all your problems will be solved. The picture quality is better too.

Glory's Sun · 03-03-2010, 04:52 AM

Quote:

Originally Posted by Meditrina

I realize that companies need to make a profit, and that goes for the cable company as well as Disney. Who is to say that the cable company is already paying Disney enough or not? It seems like a no win situation, at least for the customers. If Cablevision does not pay, we lose ABC; if they do pay, we get an increase in what we pay.

Apparently, FIOS is not in my area, so my only other choice is DirectTV. But then where will I get my internet and my phone from? I don't think DirectTV offers any kind of package deal. So I guess I am stuck. Eh, I can always raise the rent if they raise my cable bill. My tenants use my cable and my internet, included in the rent.

well, what I do is I have my DirecTV package and my Time Warner internet separate. I actually get more doing it this way.

When I was with Time Warner, they offered me 10MBup/down for $68/month plus basic cable (no movie channels) for $70 a month. My DirecTV bill is $82 and I have every movie (premium) channel plus I have all my NFL Sunday Ticket stuff when that comes around. If you love sports, movies and HD service, then DirecTV is the way to go. Their DVR boxes are awesome and I have had 0 signal loss, even during snow and rain storms. You can have up to 4 DVR (or regular) boxes on one dish, so your tenants could still have their TV and internet.

Just price around, call the cable company and tell them you're leaving and see if they offer you a decent deal. Then go to DirecTV and tell them what you want and you're considering leaving cable and see what they offer you. They have pretty good prices for what you get. Much better than cable.

Cynthetiq · 03-03-2010, 05:11 AM

MSO (multiple system operator) is the industry lingo for Cable operators. They pay out a lot to companies like Viacom and Disney for carriage of their programming. Disney has one of the biggest advantages because they own ESPN and MSOs collect about $6 per sub, whereas they would collect about $.50 for MTV.

There's a lot of money at stake. It used to be that broadcast was competitive to free over the air for CBS/ABC/NBC/Fox but that's changed since most use cable instead of OTA.

Quote:

MSOs are “immediately balking” at the $1.10 monthly per sub fee the Big Ten Network is seeking for carriage on analog, according to John Ourand in this week’s SPORTSBUSINESS JOURNAL. While ESPN gets $3.00 per sub, the fee the Big Ten Net is seeking is “significantly higher than other channels that have had trouble gaining distribution.” NFL Network charges around $0.70, and the planned MLB Channel will ask for about $0.25. The $1.10 fee is “comparable to many [RSNs], but cable operators are loath to pay it for a channel that has yet to launch and will not feature the best Big Ten games, which will be on ABC and ESPN.” Also, Fox Cable, which jointly owns the net along with the Big Ten Conference, has insisted that “every part of the eight states that make up the Big Ten schools be considered part of the local market.” For example, Philadelphia is nearly 200 miles from Penn State, but Fox is “demanding that Comcast put the Big Ten Network on its analog tier in Philadelphia” at $1.10 per sub. The net is seeking around $0.10 per sub from MSOs outside of Big Ten markets, and Fox Cable will “accept carriage on cable’s digital platforms” in those markets. DirecTV — which will carry the channel on its Total Choice package that has almost 16 million subs — is likely paying “much less than the rate Fox Cable wants in-market cable operators to pay” since DirecTV has one national feed that includes the 42 states that do not have Big Ten schools (SBJ, 4/16).

This example above is how they are exploiting the market.

Glory's Sun · 03-03-2010, 05:20 AM

It's exploitive on both ends of the stick.. the Networks want the cable companies to pay $1-6 per sub, while the cable companies expect to get the same in return. For instance, WRAL TV gets paid $.50/sub here, and the cable company then charges a dollar for carrying that channel. So they've made up their cost and gained all their profit. Time Warner pays out $3/sub on ESPN, but they charge $5-$6 to their subscribers.. So really, the cable companies are being exploiting more than the networks, but, when it comes to the practice of exploitation, it's kind of hard to find a good reason on either hand.

Cynthetiq · 03-03-2010, 05:22 AM

this is why cable is terrified of things like Hulu, youtube, mlb.com and the like. It removes the middle man and they broadcaster gets the money directly.

Glory's Sun · 03-03-2010, 05:27 AM

well, I don't think they'll have to worry about youtube much.. that place is ridiculous now with all the copyright wars going on. Hulu, well, if they go to a subscription based package, I think they'll burn out pretty fast. :shrug:

There is massive competition in this industry. For instance, last year the state (NC) passed a franchising law that allowed phone companies to carry cable and provide the service. AT&T has swooped into our area now and Time Warner and AT&T are dueling it out like two grandmothers fighting for the last pack of Polident. Time Warner just had a massive 400% increase in price because they had to meet the demands of the networks and AT&T is slowly but surely placing their equipment all over town, while Time Warner is trying to upsell their services that really don't mean anything. The start over feature.. whoopdedoo..

I'm just pissed that I didn't go to DirecTV sooner.

Meditrina · 03-03-2010, 06:16 AM

DirecTV depends on signals, right? If I am in a dead zone for my cell phone, would that be the same for DirecTV?

eh, maybe I will stick with Cablevision. The internet is more important to me than the tv is anyway. My kids don't want anything on ABC. As long as I don't lose CartoonNetwork and Disney, I am good.

Glory's Sun · 03-03-2010, 06:30 AM

no that wouldn't be the same.. cellphones are tower based, while DirecTV is satellite based. as long your dish is pointed to the right satellite, you get the signal.

Cynthetiq · 03-03-2010, 06:58 AM

see it will even happen online

http://consumerist.com/2010/03/no-mo...t-on-hulu.html

Quote:

No More Daily Show Or Colbert Report On Hulu

By Chris Walters on March 2, 2010 9:48 PM 0 views

The New York Times is reporting that Viacom plans to pull its Comedy Central programming from Hulu next week because it can't reach an agreement with the video site on compensation. In a post today on its blog, a Hulu executive notes that Hulu was "unable to secure the rights to extend these shows," and that they'll be gone as of 11:59 pm PST next Tuesday, March 9th. After that, you can continue watching them on TheDailyShow.com and ColbertNation.com.
"A Fond Farewell" [Hulu]
"Viacom Will Take ‘Daily Show,’ ‘Colbert’ Off Hulu" [New York Times] (Thanks to Michael!)

Glory's Sun · 03-03-2010, 07:03 AM

this whole copyright shit is getting annoying..

and people think the RIAA is bad..

Meditrina · 03-07-2010, 02:38 PM

Well, ABC-7 is off Cablevision, for now.

To compensate, I am getting Free movies on demand for today. Of course, I didn't get that email until just now. Maybe I will watch something after the kids are in bed, just because it's free.

Cynthetiq · 03-08-2010, 10:51 AM

I wonder who blinked....

Redlemon · 03-08-2010, 11:07 AM

I'm thinking it had to be Cablevision. ABC had the upper hand in this discussion. If the switch had been a week or two in the future, it could have been either way. Less than one day? Cablevision gave in.

03-02-2010, 12:03 PM	#3 (permalink)
Meditrina Junkie Location: LI,NY	Thanks Snowy. So what I get from that is Cablevision currently does pay Disney but not for ABC. Now Disney wants money for that part of their programming. Cablevision thinks they already pay enough. I am already paying for ABC with basic cable but I guess Cablevision is keeping that money for themselves. I see a future increase in my cable bill coming... Maybe it's time to look into a dish network, or FIOS. __________________ "Toughness is in the soul and spirit, not in muscles." ~Alex Karras

03-02-2010, 06:01 PM	#5 (permalink)
rahl Junkie Location: Ohio	I absolutely HATE cable companies. I currently have Timer Warner. I can't leave them because I bundle everything together(phone, internet, tv) and if I left them and paid for everything seperate I'd pay even more than I am now. It started out 5 years ago at $97.00. It's now $143.79. Every now and then they'll raise the price WAY too high and I have to call and threaten to leave if they don't drop the price. They always come down alot but it's still quite rediculous. __________________ "Your life is Yours alone...Rise up and live it"

03-02-2010, 06:13 PM	#6 (permalink)
Pearl Trade Addict Location: Houston, Texas	I reccomend the good 'ole Dish Network. I will admit that DirecTV has some good stuff on it, though. It's all basically the same, but I wish I could see the Dan Patrick Show and Friday Night Lights. __________________ Our revenge will be the laughter of our children. Give me convenience or give me death!

03-03-2010, 05:22 AM	#13 (permalink)
Cynthetiq Tilted Cat Head Administrator Location: Manhattan, NY	this is why cable is terrified of things like Hulu, youtube, mlb.com and the like. It removes the middle man and they broadcaster gets the money directly. __________________ I don't care if you are black, white, purple, green, Chinese, Japanese, Korean, hippie, cop, bum, admin, user, English, Irish, French, Catholic, Protestant, Jewish, Buddhist, Muslim, indian, cowboy, tall, short, fat, skinny, emo, punk, mod, rocker, straight, gay, lesbian, jock, nerd, geek, Democrat, Republican, Libertarian, Independent, driver, pedestrian, or bicyclist, either you're an asshole or you're not. What's the best nation in the world? DO-NATION!

03-03-2010, 06:16 AM	#15 (permalink)
Meditrina Junkie Location: LI,NY	DirecTV depends on signals, right? If I am in a dead zone for my cell phone, would that be the same for DirecTV? eh, maybe I will stick with Cablevision. The internet is more important to me than the tv is anyway. My kids don't want anything on ABC. As long as I don't lose CartoonNetwork and Disney, I am good. __________________ "Toughness is in the soul and spirit, not in muscles." ~Alex Karras

03-02-2010, 12:25 PM	#4 (permalink)
Glory's Sun Registered User	This happens every 3 or 4 months, but you never know about it until the cable company thinks it's just too much. Television companies are bleeding money and need every avenue of revenue possible. Disney is just wanting to get their money for ABC. as far as Cablevision keeping the money to themselves, all companies do this. They receive anywhere from $1-$4 per subscriber while only paying out $.15-$.75 per subscriber to the stations. So if the deal with ESPN was $.75/subscriber, the cable company will charge the subscriber $2-3 for access to ESPN. I think around here Time Warner is actually getting $5/subscriber for ESPN while paying out $1/subscriber. I left cable a few months ago and went to Directv and couldn't be happier. (meh to Dish Network.)

03-02-2010, 06:33 PM	#8 (permalink)
MSD The sky calls to us ... Super Moderator Location: CT	Cablevision provides what is unquestionably the best internet service in the tri-state area. When it comes to TV, we get shafted with terrible cable boxes and questionable signal quality that they claim is normal. All you have to do is to look as MSG and the teams Cablevision owns. They don't give a shit if the Rangers win the cup, they just want at least one round of playoffs revenue. Same for the knicks. I have little doubt that Cablevision will continue the dick waving contest with broadcasters and add the measurements of each and every customer's dick to their own to try and overpower them. Worst case, I lose a channel I don't really watch anyway.

03-02-2010, 08:50 PM	#9 (permalink)
ASU2003 immoral minority Location: Back in Ohio	Newegg.com - TERK HDTVi Directional indoor UHF/VHF HDTV antenna For the price of one month of cable, all your problems will be solved. The picture quality is better too.

03-03-2010, 05:20 AM	#12 (permalink)
Glory's Sun Registered User	It's exploitive on both ends of the stick.. the Networks want the cable companies to pay $1-6 per sub, while the cable companies expect to get the same in return. For instance, WRAL TV gets paid $.50/sub here, and the cable company then charges a dollar for carrying that channel. So they've made up their cost and gained all their profit. Time Warner pays out $3/sub on ESPN, but they charge $5-$6 to their subscribers.. So really, the cable companies are being exploiting more than the networks, but, when it comes to the practice of exploitation, it's kind of hard to find a good reason on either hand.

03-03-2010, 05:27 AM	#14 (permalink)
Glory's Sun Registered User	well, I don't think they'll have to worry about youtube much.. that place is ridiculous now with all the copyright wars going on. Hulu, well, if they go to a subscription based package, I think they'll burn out pretty fast. :shrug: There is massive competition in this industry. For instance, last year the state (NC) passed a franchising law that allowed phone companies to carry cable and provide the service. AT&T has swooped into our area now and Time Warner and AT&T are dueling it out like two grandmothers fighting for the last pack of Polident. Time Warner just had a massive 400% increase in price because they had to meet the demands of the networks and AT&T is slowly but surely placing their equipment all over town, while Time Warner is trying to upsell their services that really don't mean anything. The start over feature.. whoopdedoo.. I'm just pissed that I didn't go to DirecTV sooner.

03-03-2010, 06:30 AM	#16 (permalink)
Glory's Sun Registered User	no that wouldn't be the same.. cellphones are tower based, while DirecTV is satellite based. as long your dish is pointed to the right satellite, you get the signal.

03-03-2010, 07:03 AM	#18 (permalink)
Glory's Sun Registered User	this whole copyright shit is getting annoying.. and people think the RIAA is bad..

03-07-2010, 02:38 PM	#19 (permalink)
Meditrina Junkie Location: LI,NY	Well, ABC-7 is off Cablevision, for now. To compensate, I am getting Free movies on demand for today. Of course, I didn't get that email until just now. Maybe I will watch something after the kids are in bed, just because it's free. __________________ "Toughness is in the soul and spirit, not in muscles." ~Alex Karras

03-08-2010, 10:51 AM	#20 (permalink)
Cynthetiq Tilted Cat Head Administrator Location: Manhattan, NY	I wonder who blinked.... __________________ I don't care if you are black, white, purple, green, Chinese, Japanese, Korean, hippie, cop, bum, admin, user, English, Irish, French, Catholic, Protestant, Jewish, Buddhist, Muslim, indian, cowboy, tall, short, fat, skinny, emo, punk, mod, rocker, straight, gay, lesbian, jock, nerd, geek, Democrat, Republican, Libertarian, Independent, driver, pedestrian, or bicyclist, either you're an asshole or you're not. What's the best nation in the world? DO-NATION!

03-08-2010, 11:07 AM	#21 (permalink)
Redlemon Devoted Donor Location: New England	I'm thinking it had to be Cablevision. ABC had the upper hand in this discussion. If the switch had been a week or two in the future, it could have been either way. Less than one day? Cablevision gave in. __________________ I can't read your signature. Sorry.