Time Warner/Viacom Rift Healed, Pending Details
jwilcox154 writes "Yesterday a dispute over fee hikes had threatened a damaging blackout at a minute past midnight Thursday that would have prevented TWC subscribers from watching their favorite shows such as 'SpongeBob SquarePants' and 'The Colbert Report.' The two sides reached an agreement on Thursday, the first of January 2009. The companies stated the terms of the deal were not disclosed. Details must still be finalized over the next few days."
I suspect it'll happen as soon as the content providers (like Viacom) do the same and stop forcing companies like TW to take all 20 channels even if they (or their customers) only want 10 of them.
IOW, TW can't give you á la carte because Viacom doesn't make it reasonable to do so, or doesn't allow it at all. Viacom will get $2.25/subscriber/month regardless of whether all the subscribers take 1 or 20 of the Viacom channels. So why bother with the extra overhead of letting the subscriber choose when it doesn't reduce any costs for TW?
From the mouth of the TWC CEO:
Link #1 "Viacom is trying to extort another $39 million annually"
Link #2 Viacom threatens to block TWC subscribers from accessing their free online content. They not only insinuate this to TWC during negotiations, but apparently also to subscribers using TWC's ISP as evidenced by this screenshot.