New Year's Miracle! Viacom, Time Warner Cable Reach Deal

Folks on Time Warner Cable, don't worry: You'll be able to see Double Shot of Love—and any other program on a Viacom channel like Comedy Central, MTV, VH1 and Nickelodeon—in 2009. After the possibility that Viacom would yank its programming from TWC today, over a dispute over subscriber fees (Viacom wanted a 12% annual fee increase—$39 million/year—but TWC said the economy wouldn't allow it), the two companies agreed to a deal to make sure they didn't piss off cable subscribers... or viewers.

According to the Hollywood Reporter, though Viacom threatened to "shut off the signal in Time Warner Cable's markets of New York, Los Angeles and elsewhere at 12:01 a.m.," Viacom decided to start 2009 by giving TWC a one-hour extension and the two sides later released a statement saying they'll finalize their agreement in the next few days. TWC President CEO Glenn Britt said, "We are pleased that our customers will continue to be able to watch the programming they enjoy on MTV Networks. We are sorry they had to endure a day of public disagreement as we worked through this negotiation." Viacom President and CEO Philippe Dauman said, "We're happy to be renewing that partnership for the benefit of their customers and our loyal viewers."

The NY Times' Bill Carter explains:

In the past, when cable channel owners like MTV Networks have moved to take their programs away from cable systems over fee disputes they have invariably won because viewers generally expect cable systems to provide the programs they like-- and are paying for -- and protest loudly if those shows are blacked out.

That is what seemed to have happened again in this negotiation, which followed by a day a series of newspaper ads placed by Viacom that urged fans of its networks’ shows to lodge protest calls to Time Warner Cable. Though the announcement of the agreement reached in the early hours Thursday did not include any specifics about the financial terms, and executives on both sides agreed not to disclose the numbers, an executive with knowledge of the negotiation said that Time Warner had given in and agreed to pay a higher fee to MTV Networks.

One TWC customer told the Daily News he'd be happy to pay more, "We need our Dora and Diego and the 'Backyardigans.' That's how we keep him sane in the morning." But another said, "It's just a gimmick, that's my opinion. I think Time Warner Cable should be able to pay for it and not charge the customers for it."