Time Warner Settles Dispute with Viacom

Many have heard about the public dispute between Viacom and Time Warner, as a threatened blackout caused many viewers to cry out in protest. However, a settlement was reached that let Time Warner keep the 19 channels that Viacom was pulling, including such popular ones as MTV, Comedy Central, and Nickelodeon.

Approximately 13.3 million homes would have been affected by the dispute, 13.3 million households that can now rest assured they will be able to view Dora the Explorer and SpongeBob SquarePants.

The Chief Executive of Time Warner Cable, Glenn Britt, said “We are pleased that our customers will continue to be able to watch the programming they enjoy on MTV Networks.” He added, “We are sorry they had to endure a day of public disagreement as we worked through this negotiation.”

The Chief Executive of Viacom, Philippe Dauman, also had some things to say regarding the settlement. He commented, “It’s gratifying that we could reach an agreement that benefits not only our audiences but that is also in the best interest of both of our companies.”

The settlement is mutually beneficial, as it could have been mutually negative. A media analyst said it would be “mutually assured destruction” if Time Warner lost subscribers and Viacom lost advertising revenue. However, all things work for the best, and New Years brought about a new contract. This could have been bad for Time Warner, as “Viacom’s cable networks are among the most popular on cable television,” according to Michael Nathanson of Bernstein Research. Approximately 25 percent of cable customers view a Viacom channel in a normal day, he added.

Previous to the settlement, Dauman commented that “We are not asking for unreasonable increases.” He added, “All of our networks put together cost less than the regional sports networks that they provide.” Thankfully, an agreement was reached where viewers can still access Viacom channels with Time Warner.