With a handful of carriage deals set to expire at the end of the year, Time Warner Cable has launched a preemptive strike against programmers who may be looking to jack up their affiliate fees.
The cable operator on Wednesday unveiled RollOverOrGetTough.com, a site that will allow subscribers to weigh in on increasing programming costs. On the home page, users are prompted to click on one of two icons: a "rewind" button that indicates Time Warner should "roll over" on network demand, or a "fast-forward" button that allows customers to add their two cents to the debate.
It's not a subtle distinction that's being made here. Those who click on the retrograde icon are warned that "massive price increases--up to 300%--are impossible for us to absorb without passing on some of that cost to you." Time Warner Cable adds that programmers who don't secure their carriage hikes "are threatening to pull the plug on your favorite shows."
While the site provides TWC with another stream of consumer research, carriage disputes are likely to remain a fixed part of the cable landscape. Affliate fees account for some 50 percent of the networks' overall revenue haul.
The most high-profile carriage conflict of the last 12 months played out in December 2008, as TWC and Viacom engaged in a very public battle that could have resulted in a blackout of all MTV Networks programming across the MSO's [then] 13.3 million-household sub base.
As is always the case once this sort of conflict is made public, both sides tried to paint the other as the wrongdoer. TWC claimed Viacom was looking to secure a 15 percent increase in carriage fees, which would have amounted to just under $300 million per year. Viacom said it was looking to lock in a 12 percent rate hike, bringing its affiliate fee up to around $3 per sub.
Both parties worked into the pre-dawn hours on New Year's Day, arriving at an agreement in principal that kept the MTV nets from going black and allowed for a formal deal to be reached a few days later.
At launch, the TWC Web site's message remains generic, inasmuch as it does not inveigh against any particular programmer. That said, the MSO continues to lock horns with the NFL Network. Disagreements as to pricing and tiering issues have kept NFL Net off the TWC menu, even as the pro football outlet has manged to secure a foothold with all other major carriers.
Another group up for renewal with TWC is Scripps Networks Interactive, the glossy niche/reach juggernaut that includes Food Network, HGTV and the yet-to-launch Cooking Channel.
"We have some tough choices to make, and we want to make sure we're doing what's best for our customers, so we're asking them to help us decide what to do," said Time Warner Cable chairman, president and CEO Glenn Britt, in a statement. "We want them to know why we fight so hard on these issues - if we roll over, they pay the price. If we get tough, they may lose their favorite shows until we reach a reasonable agreement."
