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Cablevision filed the antitrust lawsuit against Viacom in federal court in Manhattan today

Cablevision Systems Corporation is suing Viacom for making it pay extra for less popular ancillary networks in order to receive the more preferred networks.

According to Cablevision, Viacom made it pay for 14 ancillary networks like MTV Hits, VH1 Classic and Palladia in order to obtain popular networks that customers love, like MTV, Comedy Central and Nickelodeon.

Cablevision went on to say that Viacom abused its market power by doing this, and even coerced Cablevision with threats of large financial penalties if it didn't comply.

"The manner in which Viacom sells its programming is illegal, anti-consumer, and wrong," said Cablevision. "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."

Cablevision, which filed an antitrust lawsuit against Viacom in federal court in Manhattan today, said that it is seeking many solutions, including a permanent injunction barring Viacom from conditioning carriage of any or all of its core networks on Cablevision's licensing any or all of Viacom's ancillary networks; declaratory relief voiding the December 2012 carriage agreement; to effectuate the permanent relief, a requirement that Viacom permit Cablevision to carry the core networks and ancillary products on terms pending negotiation of a new, lawful agreement, and treble damages and legal fees.

Source: Market Watch

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RE: how do you bill customers Cablevision?
By tjacoby on 2/27/2013 12:05:10 AM , Rating: 2
I was about to disagree with you until I read the whole thing.

The writing has been on the wall for a while- Since the advent of Netflix Watch Instantly, people have started clamoring for something that provides a more tailored version of what they actually want to watch. This is where the market is headed.

I think Intel's recent push for such a system could really push the market further, but don't be fooled, it will be a VERY painful transition.

You read it here first.

The various networks will fight (Viacom is a good example), because they have so many BS networks and so much to lose. A La Carte prices will not be much better than what current prices are (though I would guess slightly), but as the market moves that way, prices will stagnate over time (below the rate of inflation) and will prove to be worthwhile, because the networks will be forced to respond and eliminate the BS stations and programming that no one watches.

Its a great thing for the market, but I for one will be very interested watching the flame wars that happen over the concept of it, and also how the smaller cable companies can cope (Buckeye Cablesystem of Toledo, Ohio, which I despise, will not like it).

RE: how do you bill customers Cablevision?
By slunkius on 2/27/2013 9:11:50 AM , Rating: 2
You read it here first

but i already read this someplace else :) no cookie for you!

By Mitch101 on 2/27/2013 10:25:23 AM , Rating: 2
I hope this passes I just want to know can I sue Direct TV or Cable for having to pay for channel packages that contain channels I don't want.

You know they have the ability to provide doing channels individually but you get lumped into a channel package instead.

By Dr of crap on 2/27/2013 12:50:12 PM , Rating: 2
I reality with the ability to buy only those channels you want, and hopefully at not to high a price, that would INCREASE the subscribers for the cable providers and increase their cash flow. More would be willing to pony up $10 for a few channels that they want rather than pay $100 for the same!

"If they're going to pirate somebody, we want it to be us rather than somebody else." -- Microsoft Business Group President Jeff Raikes
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