Shahid Khan analyzes Time Warner Cable vs. iPad dispute
Time Warner Cable in iPad video spat
By David Gelles in New York - March 25, 2011
Time Warner Cable, the second-largest cable television provider in the US, is in a spat with networks over who controls the rights to stream live content to consumers’ mobile devices.
The feud broke out last week when Time Warner Cable, which delivers pay television to 14.5m homes in the US, unexpectedly released an application for Apple’s iPad that lets its customers watch live programming on the tablet device, including cable channels such as MTV, Food Network and Discovery Channel.
Users can only watch the live channels so long as they are connected to the wireless internet in their home, which Time Warner Cable also provides.
Cable networks say Time Warner Cable has overstepped its bounds. Scripps, owner of HGTV, which was made available for streaming on the app, said it “has not granted iPad video streaming rights to any distributor and is actively addressing any misunderstandings on this issue.”
But Time Warner Cable said it would not be backing down. Alex Dudley, vice-president of public relations for Time Warner Cable, said there were no plans to make fewer channels available for live streaming on the app, and that “there is more functionality and breadth coming” to it.
Mr Dudley said Time Warner Cable had the right to deliver programming to customers’ iPads at home as part of their existing contracts with cable companies. “We’re not doing anything different with the iPad app than we already do,” he said. “We’re delivering the feed that our customers pay for over our secure network in their home.”
As more consumers watch programming on computers and mobile devices, networks are working to protect their lucrative agreements with cable providers, and to ensure they are compensated as their content is made available for online streaming.
“The content companies are watching this one very closely,” said Shahid Khan, a consultant with Media-Morph. “They want every single penny and additional rights fees that they can get.”
TV Everywhere, an authentication service being adopted by cable providers and networks, will allow paying cable customers to watch the channels they pay for on mobile devices wherever they are.
To enable this, networks are negotiating for new digital rights from the cable providers.
Mr Khan said Time Warner Cable’s application was not a threat to TV Everywhere. “It’s a very different value proposition to the consumer,” he said.
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