Time Warner Cable Inc.
), the second largest cable MSO (multi-service operator) in the
U.S., has renewed its distribution agreement with
). This multiplatform agreement will allow Time Warner Cable to
telecast all TV channels of Viacom in SD, HD, video-on-demand,
authenticated websites and applications platforms.
Additionally, per the new deal, Time Warner Cable gained
rights to distribute movie network Epix, a joint venture between
Viacom, Lions Gate Entertainment and Metro-Goldwyn-Mayer
We believe renewal of Viacom's network is a huge relief for
Time Warner Cable. In Aug 2013, the company faced a month-long
blackout of CBS network over programming contract renewal
). In the third quarter of 2013, Time Warner Cable lost a
whopping 306,000 residential pay-TV subscribers primarily due to
the CBS network blackout.
Comcast, the largest cable MSO in the U.S., also lost 129,000
video subscribers in the same quarter. In a recently published
report, Leichtman Research Group stated that the top nine U.S.
cable TV operators had a net loss of 600,643 pay-TV customers in
the said quarter. This was the cable TV industry's biggest net
loss after the third quarter of 2010.
Last month, Time Warner Cable renewed its existing deal with
Discovery Communications Inc.
). The multiplatform agreement will let subscribers watch live as
well as video-on-demand Discovery programs. In the future, Time
Warner Cable intends to negotiate with Discovery to offer its
network to the TVEverywhere subscribers with an authenticated
log-in facility. As a result, viewers will be able to watch
Discovery contents even when they are outdoors.
Both Time Warner Cable and Viacom currently have a Zacks Rank
CBS CORP (CBS): Free Stock Analysis Report
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