Will Time Warner And Viacom Agree To Higher Costs For iDevice Owners?
June 23, 2011
Time Warner and Viacom will attempt to resolve their fight over video streaming outside of court, in news first reported by The Wall Street Journal. But, does this mean higher costs in the end for subscribers?
The two giants had been fighting for months over who owns the rights to video streaming. Their argument began when Time Warner released its TWCable TV iPad app, which allows its existing customers to stream content to their tablets via Wi-Fi at no additional cost.
This didn’t sit well with Viacom, which presented Time Warner with a cease and desist order on March 24. Soon after, Time Warner pulled Viacom programming from its app.
Until recently, the two companies have been fighting in the United States District Court for the Southern District of New York.
Not anymore.
According to The Journal, the “détente in litigation comes as the two sides attempt to negotiate a resolution in their dispute.”
Viacom, which owns a number of channels available through Time Warner Cable including MTV and Comedy Central, believes existing terms with cable companies do not extend to devices such as the iPad.
Conversely, Time Warner believes they do.
In a court filing made public Wednesday, both sides agreed to a “standstill agreement,” which put all litigation on hold as of June 17.
They stated:
"In an attempt to resolve this and other litigation and potential litigation, the parties have entered into a standstill agreement.”As such, both sides are in talks over whether to return Viacom channel to the Time Warner Cable app. While we are happy to see both sides looking for a resolution on this matter, don’t be surprised if Time Warner subscribers actually lose in the end. Most likely, Viacom channels will return, but only after Time Warner agrees to pass additional costs onto its customers. And if this happens, it could have far-reaching consequences for cable and/or satellite subscribers as a whole. It would embolden both content creators and providers alike to simply charge customers more for service they are already getting. Personally, we believe HBO has it about right. With its HBO Go app, subscribers get to watch HBO programming via the iPad at no additional cost. Of course, only select HBO subscribers can do so (since only certain satellite and cable providers have agreed to this). Still, for those that have it, the service works great and you don't feel like you are being forced to pay more for the same programming. What do you think? Leave your comments below.
