Viacom Sues Cablevision Over Live TV App for iPad, Negotiating Settlement With Time Warner

[roland.g]

I wonder about this. The amount of bandwidth Apple would have to serve for iTunes TV streaming would be astronomical. Maybe in 5 to 10 years? I've heard the 30% they get for a 99c song download is marginally enough to cover costs. And that's roughly 5mb a song. How much would they have to charge to stream an hour of HDTV? But then I think, obviously profitable for Netflix to make it work. So maybe the bandwidth costs are greatly exaggerated.

Apple sold about $4 billion in Music, Movies, TV Shows and iOS apps combined in 2009, up 21% from 2008, and that figure has undoubtedly risen in 2010 and 2011 YTD. However, the iTunes store is essentially a "break-even business" for Apple. They might net $100 to $400 million in profit or less on $4 billion in sales. However, in the quarter ending end of March 2011, they had $24.67 billion in revenue and $5.99 billion in profit. Now I don't know what part of their quarterly revenue or profit was iTS/App Store, but when you sell 3.76 million Macs and 18.65 million iPhones, that's your bread, butter, and opera tickets. 30% on iTunes, Apps, etc. just keeps that part of the business afloat so they can sell us all that other fun stuff.

 

[NYR99]

I hate Cablevision and the Dolan's. This is the one thing they are finally doing right. I do enjoy the Optimum app.

 

[Ciclismo]

Whilst the media houses squabble over who gets what piece of the pie, we end consumers, frustrated about not being able to easily consume media when and where we want, will continue to use other methods (such as torrents) to gain access which deny said media corporations of any profit anyhow. Now that is what is called an "own goal".

 

[JAJ]

Don't Buckle Cablevision

I really hope that Cablevision doesn't buckle here, Viacom doesn't have a leg to stand on. Because Cablevision limits their on Demand and LIVE tv offerings to people who are only on their home networks(you have to have iO and Optimum Online) to qualify for their service(I believe) they aren't doing anything wrong. If they were letting you use it with OptimumWifi while you were out then it might be more easily challengeable, but with the way they made the app it seems to be pretty strong.

 

[rdowns]

They do. They just want the cable companies to pay for it. They have to pay additional money to writers, directors and actors as a result too...

Phazer

Why?

If I buy a new TV, it costs me no more to watch content other than the cable box rental. Cable companies pay content providers based on subscribers, not number of TVs.

 

[Ciclismo]

They do. They just want the cable companies to pay for it. They have to pay additional money to writers, directors and actors as a result too...

Phazer

Wait, what? So as an actor in a show, you get more money if a Cable TV subscriber then suddenly has the ability to watch on a device other than a TV? So does your water company charge you more once you start to use an additional vessel to consume water?

 

[rdowns]

I hate Cablevision and the Dolan's. This is the one thing they are finally doing right. I do enjoy the Optimum app.

Since they started offering wifi, I love them. I get wifi all over the island and in the city.

 

[winston1236]

with everyone suing everyone i feel like maybe i'm missing out, i need to sue someone!

 

[mchoffa]

So I could buy a 10 inch LCD tv and watch my cable on it, and viacom is just fine with that, but not on my 10 inch lcd screen on my ipad? I do not understand how they even have a case here... how are those two different?

 

[Beerstalker]

The big deal here is Time Warner, and Cablevision are streaming the content from their servers over IP to customers. This is just like someone sitting at home and watching a show on Hulu, etc as far as they are concerned. That means Viacomm has to pay the writers, actors, directors, etc. for the viewing, seperate from what they have been paid for the show to be broadcast on the actual channel. But now Time Warner/Cablevision aren't paying Viacomm for that extra viewing and Viacomm has to foot the bill on their own. This is not fair to Viacomm, and that is why they are suing. They want Time Warner/Cablevision to pay for the streaming rights seperate from the rights to the actual channels just like Viacomm has to. I don't blame them.

Now if Time Warner/Cablevisions apps only allowed you to watch recordings off of the DVR in your home, then I don't think they would need to sign any new agreements.

This is precisely why DirecTVs app currently does not allow streaming of shows. They are working on getting the streaming rights from the content providers first, then they will add the function. Supposedly this is one of the things keeping AMC's HD channel off DirecTV. DirecTV wants the streaming rights included on all new carriage deals, and AMC doesn't want to give DirecTV those rights.

 

[d21mike]

I heard this somewhere, just not sure where.

What if you were only allowed to STREAM from a Cable Box. I.E. Like from a DVR of recorded content but also from the same DVR for LIVE Content. Like a PASS THRU. That would take away 1 of the tuners but how much stuff would I be watching at the same time anyway. This is kind of like the SlingBox where the content is delivered to the SlingBox and is STREAMED from there to your device. You would simple need a SET TOP BOX Client.

With this setup I could not see VIACOM having a problem. However, I am still not sure I agree with the prior post that FIOS Streaming to a SET TOP Box is any different then FIOS Steaming to my iPad which is really like a SET TOP Box. Unless you are saying that Streaming to an iPad is coming "directly from VIACOM" bypassing FIOS thereby using up VIACOM Bandwidth. But I have not heard that before.

 

[Beerstalker]

What if you were only allowed to STREAM from a Cable Box. I.E. Like from a DVR of recorded content but also from the same DVR for LIVE Content. Like a PASS THRU. That would take away 1 of the tuners but how much stuff would I be watching at the same time anyway. This is kind of like the SlingBox where the content is delivered to the SlingBox and is STREAMED from there to your device. You would simple need a SET TOP BOX Client.

As far as I know this is fine, if it is coming from your own receiver, and staying within your own home. DirecTV actually allows you to do this now from your DVR to your PC with their DirecTV2PC program.

Slingbox is a bit different though and I'm not entirely sure how they get away with some of the stuff they allow.

As far as I know FIOS uses QAM to send all their linear channel programming just like cable providers. They do not use IP. That is the issue here, Time Warner and Cablevision are sending this content out as over IP and that means it is considered to be streaming just like Hulu etc instead of linear programming like watching the QAM/analog MTV channel.

The way I understand it now DirecTV is trying to lock up 4 things with their new carriage agreeements. Linear channel rights, streaming rights, On Demand rights, and portable copy rights. They are working on a device (NOMAD) that will allow you to take your recordings off your DVR and transfer them to your iPhone/iPad/Android device etc. and take them with you anywhere without depending on an internet connection to watch them. I think these are going to be the standard set of rights that providers are going to have to negotiate over from now on.

 

[rdowns]

I heard this somewhere, just not sure where.

What if you were only allowed to STREAM from a Cable Box. I.E. Like from a DVR of recorded content but also from the same DVR for LIVE Content. Like a PASS THRU. That would take away 1 of the tuners but how much stuff would I be watching at the same time anyway. This is kind of like the SlingBox where the content is delivered to the SlingBox and is STREAMED from there to your device. You would simple need a SET TOP BOX Client.

With this setup I could not see VIACOM having a problem. However, I am still not sure I agree with the prior post that FIOS Streaming to a SET TOP Box is any different then FIOS Steaming to my iPad which is really like a SET TOP Box. Unless you are saying that Streaming to an iPad is coming "directly from VIACOM" bypassing FIOS thereby using up VIACOM Bandwidth. But I have not heard that before.

If they were streaming content that we could view OUTSIDE our homes, I'd understand wanting more money for those rights. This is no different than if I bought another TV.

 

[adwebinc]

I am so sick and tired of the cable companies and movie studios operating with blinders on. Have they learned nothing from watching the music industry?!? I pay a shload of money to my cable company every month, but I can't watch it remotely without cobbling together crap solutions. I own over 300 DVDs, but there is no "legal" way to rip movies that I paid for and own?!? All they do is motivate people to use less than ethical solutions.

Rant over.