• by David Goetzl  @dgoetzl, November 12, 2009

"We don't think it's wise for the industry to Napster-ize itself," said Rainbow CEO Josh Sapan, referring to the site that famously became a popular hub of free music.

Sapan said Rainbow is angling for AMC to receive 50 cents a subscriber per month from distributors in its next round of negotiations. Streaming full episodes online could give it less leverage, with some distributors fearful that could lead to viewers dropping pricey subscriptions.

Sapan is on board with their concerns, saying that streaming "devalues" the traditional subscription product "rather substantially."

"It seems like a bad idea to play with fire," he said Thursday at a Dow Jones/Nielsen media conference.

Rainbow is owned by large operator Cablevision, which has been outspoken in its opposition to the free-streaming rush. That movement, however, is undergoing a changing dynamic with a "TV Everywhere" concept, allowing online access if a person also has a TV subscription.

Rainbow's portfolio also includes WEtv and Sundance, but none of its channels stream episodes online, except occasionally for promotional purposes.

Sapan declined to comment on how much AMC receives now in sub fees. Still, streaming issues aside -- the fact that it offers hit drama "Mad Men" should bring a significant bump in sub fees. ("Mad Men" episodes are offered for a fee on iTunes.)

Discovery Communications and Rainbow may be the only large programmers that have resisted making episodes available on Web sites they operate, as well as Hulu or other outlets.

While trying not to upset the traditional sub-fee business model, Sapan and Discovery CEO David Zaslav have also bucked the trend: They believe there is little to gain in ad dollars from the streams.

A "relatively limited advertising reward," Sapan said.