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Editor's Corner: Tracking the top 10 worst programming disputes of all time Also Noted: IneoQuest
Spotlight On... ABI: Broadcom, STMicro lead set-top chip market
WWE breaks WrestleMania revenue record; Belo posts 8% gain in retrans fees and much more... Feature: Top 10 Worst Programming Disputes of All Time
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Tracking the top 10 worst programming disputes of all time
 When cable networks and distributors fail to agree on terms for a new contract, it often comes down to who can endure the most pain from a blackout that could leave subscribers without their favorite shows.
Pulling together our feature today on the top 10 worst programming disputes of all time brought to mind an episode of The West Wing, where Sam Seaborn (Rob Lowe) warned an oil executive preparing to purchase an outmoded tanker that it'd be smarter to buy a modern ship in order to avoid the type of consumer backlash that occurred after the Exxon Valdez spill. "We've got PR firms for PR problems," the executive responded. Just as an oil executive may risk an environmental disaster to cut costs, some of the programmers and distributors involved in the worst disputes of all time have shown they are willing to risk losing subscribers from a blackout in order to negotiate a long-term contract at the right price. Carriage deals are no longer negotiated behind closed doors. Cable programmers ranging from AMC to Scripps scrawl messages across the screen during their most popular shows that warn of pending blackouts when their contracts are up for renewal, and broadcasters do the same as they negotiate retransmission-consent deals with pay TV providers. Using the threat of a blackout has become a key negotiating tactic for both programmers and distributors, and PR strategy is now as essential as a skilled affiliate sales team. Take a look back at last year's Fox Networks – DirecTV (Nasdaq: DTV) battle, No. 10 on our list of the worst programming disputes. Both sides launched blogs to spin viewers, and DirecTV CEO Mike White appeared on camera to communicate directly to subscribers. Among the communications pros who advised DirecTV during the dispute with Fox was Tom Tyrer, the former SVP of communications at Fox Networks. The DirecTV – Fox dispute was one of the ugliest the industry has seen, with Kurt Sutter, the producer of FX hit Sons of Anarchy, ridiculing DirecTV in a profanity-laced blog. While both sides in the dispute riled subscribers, they managed to reach a deal without blacking out DirecTV's 20 million subscribers. Fans of Spongebob Squarepants, The Daily Show and other Viacom (NYSE: VIA) programs weren't as fortunate last July, when Viacom's blackout of DirecTV subscribers ran for nine days. Time Warner Cable (NYSE: TWC) subscribers who are fans of the Knicks, Rangers, Islanders or Sabres saw a blackout last year of MSG that ran for nearly seven weeks. But that pales in comparison to the blackout of NBC affiliate KRIS-TV in Corpus Christi, Texas, which Time Warner Cable subscribers endured for nearly five months... Read more  Check out our special report here
Read more about: Nbc, Directv, Comcast
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Today's Top News 1. Time Warner Cable loses 119,000 video and 35,000 voice subscribers in Q1 2013
Time Warner Cable (NYSE: TWC) lost 119,000 video and 35,000 voice subscribers in the first quarter, and said it expects defections to continue during the second quarter as some triple-play customers who signed through aggressive discounts jump ship when promotional periods expire. While TWC picked up 131,000 high-speed Internet subscribers, growth slowed compared to Q1 2012, when it gained 214,000 cable modem customers. The good news: Business services revenue jumped 25.2 percent to $537 million, driven by products such as Ethernet and wireless backhaul deals. COO Rob Marcus told analysts Time Warner Cable is paying the price for aggressive triple-play promotions it started running in the fourth quarter of 2011. He said the MSO is relying on four call centers staffed with retention specialists to keep "churny" customers from bailing after their promotional offers expire. "We've identified the risk and have taken steps to manage the churn as that big chunk of subs roll through the risky period," Marcus said, noting that the retention teams have improved its "save rate" by 4 percent. Time Warner Cable still markets a $90 triple-play to new customers. But Marcus said the package contains fewer channels and lower speeds, and "once the phone rings" customer service reps are upselling consumers to higher-priced packages and helping drive increased ARPU (average revenue per unit). Also worth nothing from Time Warner Cable's earnings call: - Marcus said employees are testing a new IP set-top and cloud-based interactive program guide which will offer "value added meta data and robust search," and offer content recommendations to subscribers. The guide and new set-top, which will be able to deliver programming to connected TVs, tablets and other IP devices, will roll out later this year.
- Marcus and CEO Glenn Britt downplayed the threat posed by Google Fiber (Nasdaq: GOOG). Britt compared Google to traditional cable overbuilders, and Marcus said Google passes just 4,000 Time Warner Cable homes. "The number of defections that we've seen is de minimis at this point," he added.
- Britt's employment contract is set to expire at the end of 2013, and there have been reports that the 64-year-old may retire. Asked if a decision has been made, Britt noted the public company is required to report major decisions, and that "we also don't report decisions that haven't been made yet." He noted that the MSO does discuss succession plans as part of "good governance," but that "it's not really a public thing."
- Time Warner Cable's programming expenses jumped 6.8 percent to $1.2 billion in the first quarter. The MSO has projected a 10 percent increase in programming costs for 2013, and executives noted Thursday that some major contracts are up for renewal this year.
- Britt said it's too early to gauge the impact that Aereo could have on retransmission-consent negotiations, noting that copyright lawsuits filed by broadcasters could eventually reach the U.S. Supreme Court.
Time Warner Cable reported $5.5 billion in revenue in Q1, up 6.6 percent compared to the same period last year, with residential revenue increasing 4 percent to $4.6 billion. It posted $401 million ($1.35 per share in net income), an increase compared to $382 million ($1.21 per share) that it reported in the first quarter of 2012. For more:
- see the release Related articles:
Time Warner Cable reduces basic cable subscriber losses in Q1 2012
Time Warner Cable to deploy 'souped up DVR' in second half of 2013 Read more about: Time Warner Cable
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2. Cisco, TiVo veterans reportedly helping Amazon build set-top box
Amazon (Nasdaq: AMZN) is developing a streaming set-top that could challenge Apple TV (Nasdaq: AAPL), Roku, Boxee and other over-the-top video players, Bloomberg reported Wednesday, citing anonymous sources. Former Cisco (Nasdaq: CSCO) VP of Emerging Products Malachy Moynihan, former TiVo (Nasdaq: TIVO) engineer Andy Goodman and ReplayTV veteran Chris Coley are helping Amazon build the box, according to the report. Amazon has used its Kindle tablets to deliver online video programming to customers. Amazon has increased its investment in programming and announced in January that it would produce pilots for five new kids' programs. A streaming set-top could help it deliver both original content and thousands of TV series and movies that are available in its online video library to viewers. Streaming video content from Amazon is already available through apps on connected TVs and devices, including Microsoft's (Nasdaq: MSFT) Xbox 360 and Roku set-tops. Amazon could differentiate its service if it were to acquire rights to linear networks. In 2011, BTIG analyst Rich Greenfield picked Amazon as one of several companies that could eventually launch a virtual cable platform. But reaching licensing deals with major programmers that distribute linear networks to cable and satellite providers, including Walt Disney Co. (NYSE: DIS), News Corp. (Nasdaq: NWSA) and Time Warner (NYSE: TWX), remains an obstacle for Amazon and other potential virtual cable players. For more:
- Bloomberg has this story Related articles:
Amazon challenges Nickelodeon, Disney by shooting original kids' programming
Greenfield: Virtual MSO will emerge in 2012; Netflix, Amazon among possible players
Amazon shakes up pay TV business with $199 Kindle Fire tablet
Cablevision lights Optimum App on Kindle Fire Read more about: Tivo, Cisco
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3. Tribune recruits Comcast and NBCU veteran Zimmer to lead distribution deals
Tribune Company said Wednesday that it named Comcast (Nasdaq: CMCSA) veteran Dana Zimmer president of distribution and that she'll lead its contract negotiations with cable operators, satellite TV providers and telcos.  | Zimmer | Zimmer is a big hire for Tribune, which has waged retransmission-consent battles in the last year with Cablevision (NYSE: CVC) and DirecTV (Nasdaq: DTV) that resulted in blackouts. In addition to negotiating retransmission-consent deals for Tribune's 23 local TV stations, Zimmer will cut licensing deals for superstation WGN America. Zimmer has been EVP of TV networks distribution at Comcast's NBCUniversal subsidiary since January 2011. Before Comcast acquired NBCU, she had been EVP of affiliate sales and marketing for Comcast Networks, which included E!, Golf Channel, Style and Versus (now known as NBC Sports Network). Tribune said Zimmer will report to Peter Liguori, the former News Corp. (Nasdaq: NWSA) and Discovery Communications (Nasdaq: DISCA) executive who was named CEO of Tribune in January. Liguori said Kevin Connor, SVP of affiliate sales and marketing at Tribune Broadcasting, will report to Zimmer. "Kevin and Dana make a strong team--both are well-known and widely respected by cable, satellite and telco providers," Liguori said in Wednesday's announcement. For more:
- see the release Related articles:
Discovery and News Corp. veteran Liguori named CEO at Tribune
Cablevision blacks out 4 Tribune stations in retransmission dispute
Tribune stations go dark for DirecTV subscribers
Tribune, Digitalsmiths pitch MSOs solution for multiscreen program guides Read more about: Comcast
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4. Time Warner Cable Austin fights Google Fiber with free WiFi
Time Warner Cable (NYSE: TWC) said late Wednesday that it is beginning to build a WiFi network in Austin, Texas – a move that could help it compete next year with new market entrant Google Fiber (Nasdaq: GOOG). In addition to offering cable modem customers free Wi-Fi, Time Warner Cable said it'll offer prepaid access to non-subscribers for $2.95 per hour, the same price it charges customers on a WiFi network it built last summer in Charlotte, N.C. The company is marketing its WiFi service in Austin with the TWC WiFi brand. Sunnyvale, Calif.-based Ruckus Wireless is supplying Time Warner Cable with gear for the WiFi rollout in Austin, spokesman Bobby Amirshahi told FierceCable. Time Warner said it has already built a "limited number of hotspots" in popular locations in the city, and that it would turn on "hundreds more" this year. The move comes about two weeks after Google announced that it will launch Google Fiber in Austin by the middle of 2014. Google will offer download speeds of up to 1 gigabit per second. In addition, it will offer a subscription video service that comes with a DVR containing eight tuners, 2 terabytes of storage and a Nexus 7 tablet that is used as a remote control. Time Warner Cable, Comcast (Nasdaq: CMCSA), Cablevision (NYSE: CVC) and other MSOs have used WiFi deployments partly as a subscriber retention tool. While cable operators offer free WiFi access to existing broadband customers, Google Fiber plans to offer a free 5 Mbps service to any resident in Austin and other cities as long as they pay an installation fee. Austin is the fourth market where Time Warner Cable has built WiFi hotspots. In September 2011, the MSO announced that it would spend $15 million on a WiFi network in Southern California. Canadian WiFi vendor BelAir Networks, which was acquired last year by Ericsson (Nasdaq: ERIC), supplied it with WiFi access points in California. Last summer, Time Warner Cable announced that it would spend $2 million to build a WiFi network in Charlotte, ahead of the Democratic National Convention. Ruckus Wireless built the Charlotte WiFi network. Time Warner Cable also has a WiFi roaming deal with Comcast, Cablevision Bright House Networks and Cox Communications that lets cable modem subscribers access about 100,000 WiFi hotspots that use the CableWiFi network ID. COO Rob Marcus told analysts in January that Time Warner would double its investments this year in WiFi, and that it would concentrate much of the WiFi rollout in New York, where it competes with Verizon (NYSE: VZ) and RCN. The MSO is scheduled to report first quarter earnings Thursday morning. For more:
- see the release Related articles:
Google Fiber targets Time Warner Cable, AT&T U-verse subscribers in Austin
Time Warner Cable's Britt: 'We brought broadband to America'
Time Warner Cable installs 120 Ruckus WiFi access points for DNC
Cable giants join forces on wireless roaming with CableWiFi
Time Warner Cable spends $15M to build WiFi network in Southern California Read more about: Time Warner Cable
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5. Beta: Discovery, History, Food ranked as most popular channels
Discovery Channel was ranked as the most popular cable channel in the annual brand identity study that Beta Research Corp. released Wednesday, with 56 percent of subscribers ranking it as one of their favorite channels. History placed second, with 55 percent picking the network as a favorite. It was followed by Food Network (51 percent), and H2, Investigation Discovery and National Geographic Channel, which each scored 50 percent. Beta said Nat Geo Wild scored 49 percent, while 48 percent of respondents said either DIY Network, ESPN or Science was one of their favorite channels. Beta said most respondents, when asked which networks they would like to see offer applications that deliver programming to smartphones or tablets, picked kids' networks. The firm said 34 percent of respondents said they would like mobile apps for Disney Junior, Sprout and Disney XD. Those networks were followed by NFL Network (33 percent); Cooking Channel (32 percent); and DIY and ESPN (each with 31 percent). For more:
- see the release Related articles:
ESPN, Fox News top Beta survey in perceived value
Discovery eyes first TV Everywhere carriage deals
Disney signs AT&T U-verse TV to multiplatform carriage deal Read more about: Discovery Channel, Espn
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Also Noted
SPOTLIGHT ON... ABI: Broadcom, STMicro lead set-top chip market Broadcom and STMicro were the top suppliers of set-top box chips worldwide in 2012, ABI Research said Thursday. Both technology vendors sold between 85 and 86 million chips last year. Ali Technology, which supplies chips to set-top manufacturers in China, placed third, shipping 65 million chips, ABI said. Read more Cable industry news from across the Web: > WWE said it grossed more than $72 million in revenue from WrestleMania 29, and generated more than 1 million pay-per-view buys worldwide. It was WWE's highest grossing event ever. News release > Belo Corp. said it posted an 8 percent increase in retransmission-consent revenue in the first quarter. News release > Nielsen said it saw revenue increase by 3 percent to $1.38 billion in the first quarter. News release > Time Warner said it was ranked No. 33 on DiversityInc.'s rankings of the top 50 companies for diversity. News release Telecom News > Infinera's DTN-X platform sales continued in Q1 2013 as GAAP revenues rose year-over-year $124.6 million in what it is typically is a slow quarter for the telecom equipment industry. Read more And finally… Amphenol said it'll pay a dividend of $.105 per share on July 3. News release
Top 10 Worst Programming Disputes of All Time While clashes between programmers, cable operators and satellite TV providers have increased in recent years, content owners and distributors have been waging battles for decades. In this special report, FierceCable counts down some of the most memorable programming disputes, based on the number of subscribers impacted, the amount of publicity generated and the financial impact on both networks and distributors. Our list includes disputes that sparked unique marketing stunts, and skirmishes that drew scrutiny from legislators and regulators. What do you think were the biggest programming disputes? Are there other incidents that should've made the list? Please let us know in the comments section. Check out our special report here > CTIA 2013 - MAY 21 - 23 - LAS VEGAS, NV CTIA 2013—North America’s largest mobile event—will bring together 40,000 of the best and brightest mobile professionals, 1,000 exhibitors showcasing 6 football fields of innovation; feature amazing keynotes; and host premium programming produced by the major thought leaders in the industry. REGISTER NOW! > Fierce Innovation Awards 2012 Live Announcement of this Year's Winners - Now Available On-Demand Please join Jason Nelson, Publisher of FierceWireless, FierceTelecom, and FierceCable as we announce the winners of the Fierce Innovation Awards 2012. Click here to RSVP today.
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