AMC Network in Play?
Spun off last week by Cablevision, the former Rainbow Media Holdings may be the acquisition target for one of several media companies. Rumor has it that Disney, News Corp. and Time-Warner each may have an interest in buying the newly renamed AMC Networks.
AMC Networks owns AMC, IFC, WE TV and the Sundance Channel. AMC also owns IFC Films and international programmer and TV program distribution unit. Speculation is that a deal for AMC Networks could run in the $3 billion range.
None of the organizations has commented publicly on the rumor. Of course if a deal is to go through it will provide the wining content provider with even more market power in retransmission consent negotiations.
Time Warner Cable to Acquire Rural Systems in Kentucky, Tennessee
Time Warner Cable announced this morning that it will acquire some systems from NewWave Communications. Specifically, Time Warner Cable plans to acquire 70,000 basic video subscribers, 42,000 Internet subscribers and 26,000 phone subscribers from NewWave in Kentucky and western Tennessee for $260 million in cash.
NewWave Communications was founded by its management team and Pamlico Capital in 2003 and provides communications services including high-speed data, cable television and telephone to smaller, rural communities in the Midwest. Headquartered in Sikeston, Mo., the cable operator will continue to serve more than 80,000 customers in Illinois, Indiana, Missouri and Arkansas after this transaction is closed. Read more
Amid Controversy, Cablevision, TWC Launch Live TV iPad Apps
Time Warner Cable (TWC) recently announced the launch of the TWCable TV app for the Apple iPad, allowing video customers to stream live, linear television to the device at no additional charge.
TWC’s application requires customers to subscribe to both its television package and broadband service, and it is currently restricted to in-home viewing. To use this feature, customers download the app from the iTunes App Store, launch it, log in and scroll through the channel lineup to select preferred programming. TWC was the first out of the gate with this live streaming application, although many of its competitors already offer video on demand (VoD) services to the iPad.
TWC initially offered about 30 cable networks, however the cable provider soon faced opposition to its distribution strategy from several major cable networks. Late last week TWC abruptly removed 12 channels from its iPad app. Viacom, Fox Cable Networks, Scripps Networks and Discovery Communications were minutes away from filing their legal paperwork when the cable provider agreed to remove their channels, according to three people with knowledge of the planned filing.
Distributors such as Time Warner and Cablevision assert that their existing contracts with content providers allow them to turn iPads and other devices into TV sets. In fact, TWC said in a statement that it believed it had “every right to carry the programming on our iPad app” and it would consider its legal options.
For their part, the content providers expect additional payment for streaming to a tablet device, maintaining that it constitutes a new distribution channel. Content providers may also be worried about the security of their programming. Down the line the consumer will want — and expect – to take his tablet with him outside the home, and, as a result, the content might be accessible to hackers who can grab the signal without paying for it. Read more
TWC Tests Cheaper ‘TV Essentials’ Package, No ESPN
In an attempt to retain cable customers who are thinking of canceling their service, or to woo back customers who have already cut the cable cord, Time Warner Cable is testing a discounted tier of channels in select markets.
The MSO will begin testing the service – called TV Essentials – in New York on November 22 and in Northeastern Ohio on December 15. The package, which includes broadcast networks and about 40 other cable channels, is valued at $49.99 per month but will be discounted for the first-year by $10 in New York and $20 in Ohio. After evaluating the trials, Time Warner Cable will roll out the package more widely beginning next year. Read more
Big Cable Operators See 500,000+ Cord Cutters
Subscribers are cutting the pay-TV cord in record numbers. Adding up cable TV losses from four of the five biggest cable operators brings the quarterly cord cutter total to more than half a million subscribers.
The carnage began last week when Comcast announced that it had lost 275,000 basic cable subscribers. No. 2 cable provider Time Warner Cable followed suit, announcing that it has lost 155,000 cable subscribers during the third quarter, which included 46,000 digital video subs. Charter Communications reported that it lost 63,800 basic cable subscribers during the previous quarter, and Cablevision announced that it lost 24,500 subscribers during the same period, including about 5,000 digital video subscribers. Read more
Clearwire and Sprint to Launch WiMAX Service in Big Cities
Clearwire Corp and Sprint announced last week that they will launch 4G mobile Internet services in New York, Los Angeles and San Francisco later this year. Services will be launched by Clearwire under its “Clear” brand and by Sprint which owns a majority stake in Clearwire. In New York service also will be offered by Time Warner Cable and in San Francisco by Comcast.
Subscribers will be able to purchase a wide range of devices, including USB modems, Intel-embedded WiMAX laptops and netbooks, portable Wi-Fi/4G hotspots and other wireless devices, all aimed at making subscribers more mobile and efficient. Each company plans to offer dual-mode 3G/4G devices which will utilize Clearwire’s WiMAX network when in range and leverage Sprint’s 3G network where 4G service is not available. Comcast said that its4G service, branded XFINITY Internet 2go, is sold as part of a Fast Pack that bundles in-home wired Internet with the 4G wireless service. Read more



