You pay too much for pay TV because your cable company is forced to purchase channels in bundles from media companies like Viacom — if it wants to offer MTV, it has to pay for CMT Pure Country and Teen Nick as well. Now one cable provider has had enough, and is suing for the right to purchase channels à la carte.
Cablevision, a New York-based cable TV provider, filed an antitrust lawsuit against Viacom on Tuesday in federal court hoping to stop the media conglomerate from forcing Cablevision to pay for channels its customers don’t watch. In order to secure rights to broadcast Nickelodeon, Comedy Central, and MTV, the company states that Viacom has unfairly bundled less-popular ancillary channels.
The pay-TV provider names 14 channels that it says Viacom coerced it into including in its lineup by threatening massive financial penalties. By forcing the company to buy all the channels, Cablevision says Viacom is unlawfully “block booking” — a form of tying that conditions of the sale of a package of rights on the purchaser’s taking of other rights.
The actual lawsuit isn’t available yet, but Cablevision released the following statement:
“The manner in which Viacom sells its programming is illegal, anti-consumer, and wrong. 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.”
Viacom isn’t the only media company that forces pay-TV providers to purchase bundles of channels in order to secure high-value offerings. Disney’s ESPN network comes with a slew of ESPN channels that providers need to purchase.
The 14 channels Cablevision feels it shouldn’t have to carry are: Centric , CMT, MTV Hits, MTV Tr3s, Nick Jr., Nicktoons, Palladia, Teen Nick, VH1 Classic, VH1 Soul, Logo, CMT Pure Country, Nick 2, and MTV Jams.
Cablevision is seeking a permanent injunction against Viacom making the licensing of ancillary channels part of the deal when licensing the channels people actually watch.
Viacom has responded to the legal action by Cablevision with the following statement:
“At the request of distributors, Viacom and other programmers have long offered discounts to those who agree to provide additional network distribution. Many distributors take advantage of these win-win and pro-consumer arrangements. Reflecting the highly competitive cable programming business, these arrangements have been upheld by a number of federal courts and on appeal. Viacom will vigorously defend this transparent attempt by Cablevision to use the courts to renegotiate our existing two month old agreement.”
This isn’t the first time bundled channels have been dragged into the courts. A group of pay-TV subscribers filed a class-action suit against programmers alleging that consumers were forced to accept bundled packages of channels. The suit was thrown out because the plaintiffs had failed to allege cognizable injury to competition.
If Cablevision’s lawsuit succeeds, it may be the end of unwatched channels filling your subscription lineup and could potentially lower your pay-TV bill. It’ll also be bad news for fans of Centric. Whatever that is.
Cablevision Sues Viacom Over Bundled Channels
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Cablevision Sues Viacom Over Bundled Channels
