More fallout from Time Warner Cable-CBS rift

TWC.jpgWhen cable companies and content providers are at loggerheads over a new contract, they usually work out a deal without too much damage being done on either side (even it it means extending the deadline several times). That's how many folks expected the impasse between CBS and Time Warner Cable to work out. But the latest quarterly results not only show TWC losing 306,000 video subscriptions during the July-September period, but satellite provider DirecTV gaining 139,000 subscribers in that same quarter. Not all the gains and losses were the direct result of TWC blacking out CBS programming for more than a month, but these numbers are far higher than Wall Street had been expecting. What this does, of course, is provide CBS with considerably more leverage in its future contract deals with other pay TV providers, while at the same time instilling fear within the cable and satellite industries. The wild cards are alternative online platforms that must also work out arrangements with the broadcast providers - and which some consider to be potential cable allies. For now, the landscape is a mess. From LAT columnist Mike Hiltzik:

What it pointed to was an abject failure of telecommunications regulators in Washington, who have stood stupidly by as mergers in the cable industry and between cable firms and content providers put the public interest at risk. Things are likely to get worse before they get better, because Washington responds only to money, and the cable and broadcast industries still have pantsfuls of that. Time Warner Cable showed during the blackout that it feels no responsibility toward its customers when its own profits are at stake. Yet its near-monopolization of Internet data services in the regions where it holds its franchise continues to stand.

More by Mark Lacter:
American-US Air settlement with DOJ includes small tweak at LAX
Socal housing market going nowhere fast
Amazon keeps pushing for faster L.A. delivery
Another rugged quarter for Tribune Co. papers
How does Stanford compete with the big boys?
Those awful infographics that promise to explain and only distort
Best to low-ball today's employment report
Further fallout from airport shootings
Crazy opening for Twitter*
Should Twitter be valued at $18 billion?
Recent Television stories:
Lucy Noland leaves NBC4, Chang has her surgery
ABC7 adds 8 pm news hour -- on Orange County channel
PBS SoCal drops its Orange County news show
Still smoking the cannibus at KCAL, I see
Fox 11's Julie Chang announces she has a brain tumor

New at LA Observed
On the Media Page
Go to Media

On the Politics Page
Go to Politics
Arts and culture

Sign up for daily email from LA Observed

Enter your email address:

Delivered by FeedBurner

Mark Lacter
Mark Lacter created the LA Biz Observed blog in 2006. He posted until the day before his death on Nov. 13, 2013.
Mark Lacter, business writer and editor was 59
The multi-talented Mark Lacter
LA Observed on Twitter and Facebook