Cable providers pay to prevent streaming TV; Time Warner responds: Duh

Rick

Posts: 4,512   +66

Time Warner Cable, like others in the pay-TV industry, has been essentially paying off content partners to prevent web-based streaming, Bloomberg reports. Incentives to lock-out content providers from streaming their properties online include monetary bonuses and threats to drop programming. Deals brokered between TWC and its partners are largely private, but some of their details were leaked to Bloomberg by anonymous inside sources.

"Exclusivities and windows are extremely common in the entertainment industry," said NY-based TWC spokeswoman Maureen Huff in response to Bloomberg's report. "It’s absurd to suggest that, in today’s highly competitive video marketplace, obtaining some level of exclusivity is anticompetitive."

Admittedly, deals peppered with stipulations of exclusivity aren't exactly a new thing. With more than 300 deals under its belt though, TWC makes no bones about its feelings toward would-be online disruptors.

Huff added, "In fact, the amount and scope of exclusivity and windowing in Time Warner Cable’s arrangements with programmers pales by comparison to that found between other players in the entertainment ecosystem."

In a nutshell: we do it, but others do it more.

Other companies, like Charter and AT&T, are also guilty of similar practices. AT&T is purportedly paying less to content providers who simultaneously provide online streaming while Charter claims to use such incentives and penalties to protect its cable-based "ecosystem".

If you're thinking deals like these are to blame for the poor state of TV streaming though, AllThingsD reports that may not necessarily be the case. Citing TWC as an example, its executive sources claim the company doesn't have those types of arrangements with the biggest players in the industry, names which include the likes of Viacom, Discovery and NBC. Hugely successful media companies have tons of bargaining power and often aren't so short-sighted to lock themselves into a no-streaming deal.

Rather, TV streaming outfits like Apple TV, Google TV and possibly even Intel have difficulty striking bargains because purchasing content to stream online is identical to the process used by cable companies: they must spend large sums of money on inflexible channel bundles -- a practice which the industry uses to subsidize its least popular properties with its most desirable ones. Even worse, since tech companies generally don't have much clout with big media, they often times wind up paying more than companies like Comcast and TWC for the same content.

Permalink to story.

 
Well maybe Apple and Google TV should try making their own shows that people will watch? What would really be cool is if Joss Whedon and Wil Wheaton and other major celebrity nerds to help write the shows and support internet streaming television.
 
So the FCC chooses to do nothing about this anti- competitive practice. No wonder why we can't watch all of our favorite programs online. It's 2013, get with the times already. The hell with these companies.
 
There will be streaming TV, when Google, Apple or Samsung buys Time Warner.
 
They complain about piracy, yet fail to offer an alternative that is as easy?
People don't want bundles, they want to watch their shows when they want, not be forced to sit down at some specific time to watch it.
 
They are playing a risky move as google apple etc quite capable of making new original content some of which already have so in a few year dont complain how you didnt dig your own grave. why they all cannot agree for open content on all devices worldwide with a standardised fee of some sort is beyond me
 
Yep so greedy I could wait till they show on my tv package and record it but like been said I want to watch when I want to watch it so I torrent majority of my tv content.
netflix good but still behind for releasing content can never get my head around why u can get it free before you can get it by purchase, must be a board of directors in there later years with no grasp on modern lifestyle/technology, and digital content why so expensive sometimes there is no cost involved (meaning cd/manufacture/design/marketing/transportetc...)
 
LOL these people are wasting all this money while you still can go to 1channel and watch any tv show you want for free. So they are losing money just go to streaming and charge a reasonably fee and you wont lose as much money as you are now. Im never home always at work so I have netflix to watch tv shows then others I just go online and find them. If you offered me something around 10 a month to watch all my shows I will gladly give you money
 
<Horse laugh> Imagine, hundreds and hundreds of underemployed actors, script writers, directors, producers, gaffers, grips, best boys (male and female - best boy is a job title, not gender specific), cameramen (and camerawomen).....digital gear...cheap storage...YouTube for experiments..... and these cable folks think they might be able to hold back Streaming TV. I'll bet that one of the next 10 hit series will be Kickstarted and Steamed outside of CableTV. Then the next 3 out of 10. Just wait, it is going to be GREAT!!
 
Streaming TV is inevitable. It's only a matter of time. I think they realize it but choose to do nothing about the situation. They are so blinded by old models and a paralyzing fear of losing even a single dollar.
 
Streaming TV is inevitable. It's only a matter of time. I think they realize it but choose to do nothing about the situation. They are so blinded by old models and a paralyzing fear of losing even a single dollar.
Particularly once 4K and 8K hit mainstream. 8K => 45mbps per stream... how can you put large numbers of channels over the air or via satellite? Here there are 2 free to air HD channels. The rest are SD - restricted by bandwidth.

You are going to need high speed broadband to move to next gen TV.
 
It's a shame that CATV have gotten so huge. I've have ditch CATV and gone the HDTV way stream off Netflix, Hulu Plus is run by Comcast..Boo.. I had it cancelled that service. HBOGO requires HBO Subscription service that cost around $16.99 per month and that can add. Another CATV control station. Which started it all. Too much control for what you want to watch for free. I get 69 channels off the dual HDTV outside with 80 mile range aimed North and South.

Right now I getting This TV, ANT TV, Bounce TV, ME TV and COZI TV, LWM and ION same stuff you get on CATV you paid for but I get it for free. Still more room for more channels. CATV seems to have a hand in that also.
 
Simple solution is regulation. Make it illegal for exclusivity or contractual bonuses for exclusivity. Also harsh penalties for companies making secret arrangements to prevent availability of content via competitors.
 
Simple solution is regulation. Make it illegal for exclusivity or contractual bonuses for exclusivity. Also harsh penalties for companies making secret arrangements to prevent availability of content via competitors.

On a week when this site is filled with stories about the govt invading our lives, do you really want more govt regulation?

Maybe instead of trying to stop the internet from wrecking the business model, the cable companies could try to embrace it and make it work for them. Did the lessons from the music industry get forgotten already?
 
Well maybe Apple and Google TV should try making their own shows that people will watch? What would really be cool is if Joss Whedon and Wil Wheaton and other major celebrity nerds to help write the shows and support internet streaming television.

Wil Wheaton is a major celebrity?? lol
 
In my area at the consumer level, I consider TW a bunch of thugs. They have a franchise from the city and most of the surrounding towns. Basically, they have positioned themselves as the only game in town, and engage in abusive practices like phone slamming. If their service is bad and you call up to complain, they often tell you its your fault when then know full well it is their fault, then they have the gall to try to sell you more. This article just indicates that TW is also abusive in other ways, too, so to me, this comes as little surprise.

However, one outfit in my area has just gotten permission from NY State to offer fiber to the home service. TW won't be happy about this, I am sure, and I would not be surprised if TW does everything in their power to interfere with this company.

And this competing company is promoting streaming TV as THE reason to use their service. When it becomes available in my specific neighborhood, I'm switching. Its 100 MBPS service for $50/mo rather than the $42/mo I'm paying for 10 MBPS service from Thugs Warner.

As I see it, TW should watch out as an antitrust lawsuit is just around the corner if someone does not take them over.
 
Capitalism is why we can't have nice things, this is complicated as hell. I wish these businesses were more regulated.
 
Amazon already took the lead by creating their own shows for their streaming service. I'm pretty sure they will do well with this model and pretty soon there will be a lot more outfits doing the same thing.
 
Comcast does the same as Netflix and first said it was free then charges appeared for $4.95 x 12 = $$$.. I got my false charges. Ditch CATV don't need it. Cost too much in the first place. I use to cost $5 bucks for HBO today it's $16.99 and climbing.. These bundles they give you Digital Phone, Digital CATV and Internet Speeds of 200 plus. Doesn't come cheap. Rentals of DVRs, Cable Modems an etc. adds up you could end up speeding $2,000 to $3,000 a year. More connections you have the more they make you pay for. Add another outlet cost is $30 up front.. Racket..
 
On a week when this site is filled with stories about the govt invading our lives, do you really want more govt regulation?

Maybe instead of trying to stop the internet from wrecking the business model, the cable companies could try to embrace it and make it work for them. Did the lessons from the music industry get forgotten already?
It's a balance. Without regulation, private companies screw the public. The govt has a role to play.
 
So the FCC chooses to do nothing about this anti- competitive practice. No wonder why we can't watch all of our favorite programs online. It's 2013, get with the times already. The hell with these companies.
I guess that depends on what your favorite programs are. All I have to do is go to http://www.cbs.com/
to watch my favorite tv programs online.
 
Back