No Oscars Here Last Night
Cablevision and ABC 7’s parent company, Disney have been duking it out over contract pricing. It’s been a total mud slinging fest on both sides. Cablevision currently pays 200 Million annually for ABC’s programming and, according to Cablevision, Disney is asking for an additional 40 Million on top of that per year. Cablevision’s argument is that is a hefty increase when ABC is offering no new programming or functionality, and that the price is too high not to have to increase rates for Cablevision’s subscribers. They also go on to say that ABC is trying to cover lost ad revenue due to a bad economy. Disney, on the other hand, says Cablevision “pockets” fees from customers and that Cablevision is more concerned with profits than their customers.
In all honesty, the whole thing oozes with corporate greed on both sides but I have to say that Cablevision’s point rings truer with me. ABC Disney is able to broadcast for free, and you can view ABC live without a cable provider with a digital antennae. So, ad revenue is down because companies aren’t spending as much. Unemployment is at an all-time high since the Depression, meaning consumers have less extra to spend. In this model, ABC would demand 40 million more per year to that lost revenue, which was lost largely because of a terrible economic downturn and rather than suck it up like the rest of us, ABC Disney would have the consumer pay.
To Disney’s argument that Cablevision is pocketing customer’s fees, I have two points:
- Coporate structures are designed to make a profit, and Disney isn’t fooling anyone that they aren’t doing the same thing. Disney is a powerhouse in the entertainment industry, owning ABC, ESPN, Pixar, Marvel, Theme Parks, etc… They are rolling in profits.
- Since creating its Optimum Triple Play 7 years ago, Cablevision hasn’t raised fees on it’s digital phone service or internet. Their claim is that it doesn’t cost them anything programmatically and they value their customers. True or not, they’re saying the right things to me.
The waging war came to an ugly head yesterday when ABC Disney made good on its promise to pull ABC off the air at midnight 3/7/10 if the conflict was not resolved. When I woke up yesterday morning, we had a looping message from Cablevision where ABC 7 would normally be. Fo 3 million customers in the New York City area that meant no Red Carpet, no Oscars. In efforts to console customers, Cablevision made an offer to subscribers - go to the On Demand store and order any movie on 3/7/10 only for free.
Sure enough come Oscar time (8pm EST) ABC 7 was still off the air and the drama lingered. However, service was restored at 8:55pm EST, just in time for the first award to be handed out. Just like a knight in shining armor, ABC Disney came to the rescue of 3 million subscribers that were being deprived of the glitz and glamor of the Acamemy Awards. Yeah, not how I see it… ABC Disney used Cablevision customers as pawns in a game of chess against Cablevision in order to meet a ranson demand. They even urged customers to switch providers just to stick it to Cablevision. I for one don’t appreciate being toyed with in such a way, and in an act of defiance didn’t turn the TV on at all last night. I know I’m only one viewer and can’t change ratings, but I did what little I could to voice my displeasure in an outrageous battle.
Question now is, how far can I really take my protest when Disney is everywhere?
