Time Warner Cable Goes to Court Over iPad Live Streaming

| News

Time Warner Cable announced Thursday that it has filed a lawsuit over its right to stream TV content to its customers’ iPads. The company said that it has asked a court for a declaratory judgement ruling that existing “carriage agreements” between the cable company and Viacom include the right for Time Warner Cable (TWC) to deliver content to any device on a customer’s home network.

This is the argument that TWC has publicly made since cable network owners like Viacom, Discovery, Scripps and News Corp.’s Fox Cable Networks began threatening the cable operator with lawsuits over the streaming service, which is limited to iPads that are on the customer’s home network.

The cable network owners believe that Time Warner Cable (and therefore other cable operators) should be paying for the right to send their channels to an iPad, or at least negotiatie for that right, which they do not believe is covered by existing licensing agreements. They are also worried about such issues as audience measurement, as there are no established metrics or methods for measuring audience on an iPad app.

On March 31st, Time Warner Cable pulled 12 channels owned by the above companies from its streaming TV iPad app in the face of threatened lawsuits from the companies. Today’s request for a declaratory judgement is a pre-emptive move by the firm.

“We have steadfastly maintained that we have the rights to allow our customers to view this programming in their homes, over our cable systems, without artificial limits on the screens they can use to do so, and we are asking the court to confirm our view,” Marc Lawrence-Apfelbaum, Executive Vice President and General Counsel of Time Warner Cable said in a statement.

He added, “With over 360,000 downloads of our TWCableTV app, it is clear that our customers welcome the convenience and flexibility our new app provides.”

For its part, Viacom laid out the case that licensing rights such as these have always been negotiated on a case-by-case basis based on “specific technologies and devices,” and accused Time Warner Cable of making a “blatant grab.”

In a statement issued after Time Warner Cable’s suit was filed, Viacom said, “Instead of addressing these issues, Time Warner Cable simply launched the product without a license to distribute our programming through an iPad app. They blatantly grabbed the rights that their competitors have negotiated in good faith to obtain.”

“Now,” the company added with a rhetorical flourish, “[Time Warner Cable] is asking the Court to declare their brazen acts lawful.”

Viacom said that it will be filing a countersuit, accusing Time Warner Cable of refusing “to even discuss the business issues.”

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Comments

b0wz3r

Please pardon my ignorance, but I’m confused about what this article is saying…

TWC is suing Viacom et al to be able to provide content from those providers via the TWC app?  And that is in response to those providers suing TWC for providing it in the first place, which they then pulled from the app?

At first glance, it seems like it might be the other way around; that Viacom et al is suing TWC for pulling those channels because they want to try to make an additional buck off of them in that process?

FlipFriddle

Basically, TWC is arguing that an iPad is the equivalent of another TV in a customers house and TWC is offering their customers another way to view content that they (the customers and TWC) have already paid for. Viacom and others are arguing that their agreement with TWC does not cover tablets, and without TWC charging their customers additional fees (and giving those to Viacom), then TWC is violating their agreement. It’s all about the content providers wanting to make more money off of the same content. I’m sure TWC is offering this app to create a value add to stop more subscribers from dumping cable over high prices.

ctopher

And you know what? It works. I happen to have TWC and a work iPad, so I downloaded it and, while I’m at home, I can watch the channels they provide.

The problem is, there are no local channels and only ESPN news for sports. The app is simple and effective. It made me feel good to be a TWC customer.

Also, it makes me feel like TWC is trying. Trying to help it’s customers use all this 21st century gear without a toll booth at every turn.

So I say, bravo to TWC for fighting for the little guy.

Which, BTW may be the only reason they’re doing this. The cynic in me says it’s all for PR. Only 360,000 downloaded the app? That’s not a huge percentage of their customers. But whenever there’s a dust-up over carriage fees, TWC always advertises that it’s the evil networks trying to stick it to the lowly TV viewing public and TWC is there to protect them…

As PR moves goes, this is a good one!

CCardona

Since we don’t know how their agreements are worded, we can’t really predict how it will resolve in the courts. If it says “all TVs in a customer’s house”, then why isn’t an iPad a TV, just because it can do so much more? If it can WORK as a TV, then it IS a TV, by any reasonable definition.

The, “if it quacks like a duck, then it is a duck” argument!

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