• Advertising Age, Monday, June 16, 2008 10:30 AM

The argument: whether to use content on cable TV shows to make subscribers pay, or distribute that content on the Web to garner the widest possible audience and make up lost ad revenue, is getting uglier.

Time Warner Cable's Alexander Dudley says his company is prepared to withhold some of the subscriber revenue if too much content is put on the Web. "What makes cable appealing is the content on the video package. If that content is free over a really awesome Road Runner ISP [Internet] connection, that discourages people from buying the video product."

Erik Flannigan, digital executive at MTV, counters, "A segment of our audience is living primarily online" rather than watching TV. "As long as we're putting forth that experience and getting the lion's share of the advertising, everybody wins." Analysts warn that cable companies withholding subscriber fees would result in litigation.

Read the whole story at Advertising Age »