Cablevision Fields Complaints About iPad Streaming

Jersey-Shore

With networks objecting to their programming being streamed on its iPad service, Time Warner Cable has agreed to remove it in some cases, and even entered litigation in another. Cablevision has a similar iPad offering, and seems to be moving ahead with less acrimony.

Yet a recent government filing shows that it has also been dealing with complaints, and has faced requests for compensation as a result of damages suffered. Most networks have not shown opposition to being included, Cablevision says -- but others have "asserted" the iPad distribution method is "a material breach of their affiliation agreements and a copyright violation yielding statutory damages."

By including the note in its quarterly filing, Cablevision seems to be putting investors on alert that lawsuits could ensue, although it does express a belief that it has "a strong legal position."

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In the name of transparency, companies routinely disclose matters of this sort, and specific consequences do not always result. Cablevision says in the filing that it is in discussions with the programmers and indicates that "satisfactory resolutions" could result.

Cablevision and Time Warner Cable make live streams of network shows available on iPads in the home, seen effectively as another TV screen. Both believe their contracts give them those rights, but some networks disagree.

Discovery and Fox protested to Time Warner Cable, which removed their networks -- although it did restore them swiftly, presumably after satisfactory negotiations. The Viacom networks have been taken off and remain so, while Time Warner Cable and Viacom are suing one another. Viacom, which includes MTV, claims in court papers that Time Warner Cable has moved to "unilaterally change the terms of its contractual relationship."

Unlike Cablevision, there could be particular frustration with Time Warner Cable, since it requires customers to subscribe to its broadband offering to get the iPad option. Some networks believe the cable operator is using the iPad app as leverage to boost its broadband revenues.

Cablevision does not have the broadband requirement.

Last week, Scripps Networks asserted that its carriage deals do not cover the iPad apps. But it favors the distribution system as long as it can receive some compensation for its participation. Scripps networks continue to be available by both Time Warner Cable and Cablevision.

Cablevision has issued the following statement as the controversy has mounted: "Cablevision's agreements with programmers allow us to deliver cable television service to our customers, regardless of how many or what kinds of televisions they have in the home. Programmers are paid based on how many homes we securely connect to their content, not how many televisions display it. They have never questioned whether a customer has a single TV or a dozen 50-inch flat panels in the home -- it's all cable television."

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