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Cablevision Sues Viacom for Violating Antitrust Law
Author: Scarinci Hollenbeck, LLC
Date: March 4, 2013
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Cable customers may soon be permitted to drop unwanted channels they are forced to pay for with their bundle if distributor Cablevision wins its antitrust lawsuit against Viacom.
The company argues that Viacom, which owns MTV and Nickelodeon, violated antitrust law by bundling undesired and unknown channels with big ones and forcing customers to pay for the entire package. Viacom has long been in the habit of selling pre-determined bundled packages to cable distributors, and a number of other providers – including Time Warner and DirecTV – support Cablevision’s claims that this scenario constitutes business law violations.
Some providers having difficulties getting distribution are also supporting the lawsuit.
“The U.S. TV market is not a free market and we support Cablevision’s effort to draw attention to the anti-competitive practices that keep independent networks like Ovation from competing on a level playing field,” Chad Gutstein, CEO of the arts channel Ovation, told the Los Angeles Times.
Viacom responded to the lawsuit by noting that it does not require distributors to bundle their channels, but merely provides a financial incentive in the form of a discount for those who purchase these packages, according to the New York Times.
In response to the bundling packages, many distributors say they are losing revenue, as more Americans cancel their cable packages and turn to internet streaming features to access their favorite shows.
- Industries: Entertainment & Media
- Practices: Corporate Transactions & Business
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