Cablevision has announced a lawsuit against Viacom, pitting the cable provider against the content company, alleging illegal antitrust infringements. The gist of the suit is that Cablevision is suing Viacom for, in its view, forcing it to carry fringe channels along with its more popular content. Cablevision states in its release that it was “coerced” to do so at the threat of “massive financial penalties.” This leads to, Cablevision goes on to state, “[impaired] competition by making Cablevision pay for and carry networks that many subscribers do not want to watch.” The suit, if it does eventually wind through the courts, and Cablevision wins, could lead to the unbundling of cable channels. This would be a tectonic shift in the economics of cable television, allowing for unprecedented consumer flexibility, and financial hardship at channels that simply can’t hack it on their own.
About Shelly Palmer
Shelly Palmer is the Professor of Advanced Media in Residence at Syracuse University’s S.I. Newhouse School of Public Communications and CEO of The Palmer Group, a consulting practice that helps Fortune 500 companies with AI strategy, implementation and governance, as well as technology, media and marketing. Named one of LinkedIn’s Top Voices in Technology, he is a bestselling author, covers tech and business for Fox 5’s Good Day New York, is a regular commentator on CNN, and writes the popular daily business blog Think About This. Follow @shellypalmer or visit shellypalmer.com.