Time Warner Cable Inc.
) - the second-largest cable operator in the U.S. - has decided
to include Ovation channels in its program list which was earlier
dropped by the cable giant. Both companies have entered into a
fresh contract where Ovation will resume its service from the
beginning of next year.
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Ovation channel mainly targets U.S. viewers interested in art,
music and film. The lack of popular content coupled with mounting
programming cost has forced the cable company to slash the
Ovation channel from its list.
Of late, Ovation has been expanding its offerings by airing
popular TV series like A Young Doctor's Notebook. Moreover, the
network company has also started an in-house production unit,
Ovation Studios. The company has also decided to offer 200 hours
of original TV shows from 2014 and it will gradually increase to
250 and 300 hours in the next couple of years.
Time Warner Cable is assessing cost, viewership and content
before renewing contracts with TV network operators.
Earlier, Ovation had a viewership of 121,590. Now, the launch of
much original content may have induced Time Warner Cable to
strike a deal with the channel operator.
Few months back, Time Warner Cable faced a channel blackout from
) as the latter had demanded higher contract renewal fees.
Last month, Time Warner Cable reinstates CBS Corporation's
programs on its list.
) and TV network major
), differed on the issue of programming fees. This had led to
channel blackout for DIRECTV customers. Finally, the satellite
giant had to renew its contract for a period of seven years with
a significant 20% rate hike.
In most cases, payTV operators accept the conditions of the TV
network majors at the time of contract renewal. However, Time
Warner Cable will enjoy an advantageous position while striking a
deal with a less popular channel like Ovation.
Currently, Time Warner Cable has a Zacks Rank #3 (Hold).