Time Warner and LIN scuffle over re-transmission fees
In a surprising move, Time Warner Cable CEO Glen Britt is encouraging subscribers to go online to view TV programs, instead of watching them through his service. While the move looks contrarian, it is motivated by a struggle with local TV syndicator LIN TV.
LIN owns 15 local TV stations that have deals with broadcast providers. All 15 offer online content, a few hours after it is broadcast live. Time Warner and LIN are disputing the fee TWC must pay LIN for re-transmission rights, and it looks like Britt is going on the offensive to try to migrate viewers to online video. Getting the TV watchers to view the content online or get an online feed onto their HDTV would drive down the total number of TV viewers of LIN's content, and any re-transmission fee it can command in the process.
LIN has fought back by encouraging its customers to get their TV from sources other than TWC, like satellite and IPTV. We'll see if the two companies keep bickering over the fee and drive customers away from each other in the process, or if they reach a compromise and use ad dollars to promote their own services, rather than to attack the others.
For more:
- see the LA Times blog post
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