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rf_engineer
join:2003-08-04
USA
| reply to marigolds
Re: No happy medium
said by marigolds  :The tier option was likely not available. Viacom could only be moved to a separate tier if they agreed to be moved. Since this would have killed their ad revenue, there is really no way they would have agreed to it. Do you know for a fact that the tier option wasn't available? The only way I could see that a tier/package option wasn't available was due to some previous agreement between TWC and Viacom. Obviously whatever agreement they had before ran out 12/31/08 24:00 
I think that was really the only viable and equitable solution to this situation, considering things were at a stalemate. As I mentioned in a previous posting, TWC should have let Viacom charge whatever they wanted for the channels, TWC add a reasonable profit margin, and then throw the channels into a separate package. That way it's put up or shut up time for Viacom; they would have to price it correctly and deliver the right programming to attract subscribers to the package. Performance based agreements make sense, not this "we're Viacom and people will be pissed if you lose our channels, pay up" stuff. | |
marigolds
Gainfully employed, finally
Premium,MVM
join:2002-05-13
Saint Louis, MO | FCC rules allow Viacom to write tier requirements into the contract. The contracts are confidential, but experience shows that nearly every channel on basic or expanded basic cable has a tier requirement. | |
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