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Edition: U.S. Article Comments (0) Save Email Print Reprints Most Popular Most Shared Nuts' anti-cholesterol effects stronger for some 10 May 2010 WRAPUP 8-Gulf oil slick spreads as oil execs face grilling 10 May 2010 Greek crisis gives Asia central banks cause to pause 10 May 2010 FOREX-Euro slips as doubts about rescue package remain 10 May 2010 BP tries a new Gulf spill fix, as slick spreads | Video 10 May 2010 GLOBAL MARKETS-Shares fall, euro dips on doubts over EU plan 2:26am EDT Food-stamp tally nears 40 million, sets record 07 May 2010 What the Kagan pick says about Obama 10 May 2010 U.S. missiles kill at least 14 in Pakistan 3:15am EDT Stocks leap on $1 trillion EU rescue plan | Video 10 May 2010 Nuts' anti-cholesterol effects stronger for some 10 May 2010 Kagan bucks 40-year trend as court pick 10 May 2010 Concert promoters embrace new media for fan services 07 May 2010 Food-stamp tally nears 40 million, sets record 07 May 2010 New Toyota probe begins, LaHood watching company | Video 10 May 2010 UPDATE 1-JPMorgan warns on costs related to US regulation 10 May 2010 Nasdaq adds 12 stocks to list of canceled trades 09 May 2010 Police barred from penis enlargement 23 Apr 2010 Cambodian street-kids spearhead Khmer food revival 15 Jan 2008 U.S. safety agency looking into P&G's new Pampers 05 May 2010 Cable worries about Web video as fee disputes grow Yinka Adegoke NEW YORK Mon May 10, 2010 5:16pm EDT Related News Cable industry to talk convergence at confab Mon, May 10 2010 U.S. approval allows first-run movies to TV sets Fri, May 7 2010 U.S. approval allows first-run movies to TV sets Fri, May 7 2010 UPDATE 2-Cablevision posts higher profit, adds video subs Thu, May 6 2010 As media results improve, investors lose interest Wed, May 5 2010 A man watches a presentation of a new flat screen TV model at the Internationale Funkausstellung (IFA) consumer electronics fair in Berlin, September 7, 2009. Credit: Reuters/Thomas Peter NEW YORK (Reuters) - When executives gather for the annual Cable Show industry event in Los Angeles this week, two issues will be near the top of the agenda: rising programing fees and the growing threat of new Web video services. U.S. | Entertainment | Technology | Television | Media Many industry watchers have long argued these are two sides of the same coin. They say if cable distributors keep passing along the higher programing fees to subscribers, then those subscribers will eventually seek out entertainment elsewhere. One likely place would be online video. Such high stakes have led to ugly fee negotiations in recent months. Stand-offs include Time Warner Cable Inc versus News Corp's Fox Networks as well as Cablevision Systems Corp versus Scripps Network Inc. Two months ago, ABC local station signals went dark on Cablevision due to a dispute with ABC parent Walt Disney Co. "The affiliate deals between cable networks and operators have been increasingly contentious over the last six months," said Thomas Eagan, analyst with Collins Stewart. "There's got to be some realization that the ecosystem works if they work well together. It falls apart if their negotiations are disruptive." Standoffs between programmers and distributors are almost a staple of the American media business in a tough economy. But a particularly weak advertising market and the recent introduction of retransmission fees have further complicated matters. Retransmission fees are the amount broadcasters charge to distributors who deliver the free-to-air signals to their subscribers. Broadcasters have in the past allowed cable companies to carry those signals for free but as advertising rates fall they been pushing for this alternative revenue. CBS Corp CEO Les Moonves, a keynote speaker at the Cable Show, has been among the biggest champions of retransmission fees and shows no sign of backing down. But these battles over fees have been bad for the industry, and cable companies have dedicated marketing dollars to explain programing fee hikes as the reason for rising cable bills. CORD-CUTTING One reason for this is the long-running fear that customers will tire of paying more, give up cable TV and cut the cord. It is not yet clear that consumers will make that move. Collins Stewart's Eagan points out that pay-TV additions for cable, phone and satellite customers have outpaced customer losses for the last two years. He expects the same this year in spite of the growth of Web video. The cable industry is aware of the threat. Comcast Corp and Time Warner Inc launched TV Everywhere at last year's Cable Show, which allows paying subscribers to watch their favorite cable shows on-demand via the Web. The service has been rolled out gradually. but has yet to fully capture the imagination of everyday cable subscribers. Until recently, cable investors argued the average American family isn't prepared to sit around a laptop to watch HBO. But a proliferation of new devices and services has made it easier to watch PC content on flat screen TV sets. "You're going to see an accelerated cord-cutting beginning this Christmas season with Web-enabled TVs and games consoles," said Todd Mitchell, analyst at Kaufman Bros. Programmers have also been holding talks with Apple Inc to stream cable-type programing packages to its devices like the iPad. Such packages could allow an Apple subscriber to buy a cheaper, smaller package of their favorite TV channels or shows unlike current cable offerings. Meanwhile, companies like Netflix Inc and Sony Corp's PlayStation have started streaming movies in competition with cable's video on-demand services. PlayStation is also offering live Major League Baseball games. But there could be an even more dramatic change if the cable companies themselves decide to transform their Internet-Protocol-based cable systems to deliver programing over the Web. "If it's all IP-based what's to stop Comcast delivering a mini-package of Discovery, ESPN and CNN to a customer?" said Mitchell. "They could aggregate programing at a more effective price than cable outsiders." (Reporting by Yinka Adegoke; Editing by Richard Chang) U.S. Entertainment Technology Television Media Add a Comment *We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language or appear to be spam and review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. © Copyright 2010 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Analyst Research Mobile Newsletters RSS Podcasts Widgets Your View Labs Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts Venture Capital Journal International Financing Review Project Finance International PEhub.com PE Week Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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