Time Warner

TIME WARNER / VIACOM
COUNTDOWN TO A BLACKOUT
CASE

Team Work Group 2

Group 1
MARKETING
ECONOMIC AND ADMINISTRATIVE SCIENCES SCHOOL
2012
TIME WARNER / VIACOM
COUNTDOWN TO A BLACKOUT

BACKGROUND
Time Warner Cable is the second largest cable provider in United States that for 2008 count with 13.3 million subscribers. On the other hand, Viacom is one of the largest providers of cablechannels with Nickelodeon, MTV, VH1, BET, Comedy Central and other channels.
Viacom that start as a subdivision of CBS on 1971 has been growing in all their history; two of the principal channels of Viacom Nick and MTV was acquired on 1985 with the name of MTV Networks that have a set of different channels.
Time Warner Cable a telecommunication company with services of television, internet andphone with expertise since 1980’s is the most important company in the sector for the leadership on this.
Both companies have a problem ending 2008 that people know when newspapers as The New York Times publish that “Viacom insisted on an increase in rights fees for its 20 channels”.
25 percent was the part of viewers that watch Viacom channels in a day, but Time Warner pay more to thecompetence, for example to ESPN pay $4 and Disney Channel $0.85 on the other hand MTV just pay $0,32 and Nickelodeon $0,45 per month for each subscriber. This was the reason for the probably blackout of Viacom of the Time Warner networks.
The answer of Time Warner was the economic environment that for this moment start the crisis that affect to everybody, thus it said that a rise in the price perchannel translate in a cost for the customer.
Finally, both companies arrive to an agreement a day later of the termination of the previous contract.

UPDAITING
An agreement is important because Time Warner today stay in 29 states with 14.5 million subscriber and Viacom have channels with a large audience.
Unfortunately, Viacom and Time Warner Cable are again in disputes, this time is for showedchannel as MTV and Comedy Central by Viacom in an application of Time Warner for iPad devices, the argument of Viacom is that Time Warner not pay for the use of their channels to show in iPad and could be that Time Warner have not copyright to show the channel in mobile devices. In consequence both companies are in federal demand in New York State. But the company decided pause the demand to next anegotiation
This new problem for the streaming video in mobile devises is not just between Time Warner and Viacom, with other companies happened equal because is legal discuss, for example the argument of Time Warner is that him pay for the rights and is not necessary pay additional for have the channel in a device, they said that is another screen, so currently a lot of this problems aretrying solve for meddle of negotiation.

PEOPLE INVOLVE
Customers: The specific group whom the product was directed is the American population. This means that Time Warner was firstly directed to this specific group, as the television company is one of the largest cable operators in the United States.
Dora the explorer, Boots the monkey and SpongeBob Square Pants are fictional characters that arementioned in the case.
Dora the Explorer is an American animated television series created by Chris Gifford, Valerie Walsh, and Eric Weiner. Dora the Explorer became a regular series in 2000. The show is carried on the Nickelodeon cable television network, including the associated Nick Jr. channel. It aired on CBS until September 2006. A Spanish-dubbed version first aired as part of a Nick enespañol block on NBC Universal-owned Telemundo through September 2006; since April 2008, this version of the program has been carried on Univision as part of the Planeta U block. Dora Marquez, the main character, is a 8-year-old girl who embarks on a trip in every episode in order to find something or help somebody. She asks the viewers at home to help her find new ways to reach places with the...