What has only made headlines today is the announcement of Viacom pulling over 18 channels off cable giant Time Warner if a new retransmittal fee is not agreed upon. Shows like Sponge Bob, Dora the Explorer, Colbert, The Daily Show – basically all Nickelodeon, MTV and Comedy Central shows will no longer be seen by tons of subscribers.
Great, so what does this mean, nothing new right. Certainly not for college newspapers. What you might have missed is why this problem has come up. In a nutshell, decreasing ad revenues is forcing content providers to find other revenue streams. Turning to subscribers is one way to shore up a decline in ad sales. Cable companies don’t want the increase because they have to pass it along to the subscriber which can cause them to lose customers.
Like an iceberg, this is just the tip. Here in the pacific northwest, satellite provider Dish Network is having a similar battle with Fisher Broadcasting. Certain local channels have been off air now for two weeks for those Dish Network providers in Washington, Idaho, Oregon, northern Ca and parts of Nevada. Want to watch a playoff game on CBS in Boise? Too bad, KBCI is off air for Dish Network subscribers. Want to watch the BCS bowl games on Fox in northern CA? Will have to go to your local bar for those games if you use Dish. Continue reading Viacom/Time Warner battle – just the beginning?
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