There seemed to be great news for little kids in Los Angeles, New York and other huge cities that the blackout of the serial “SpongeBob” has now been avoided. The ball already fell in the Times Square, however, Time Warner Cable and MTV Networks kept on discussing in the new year thereby coming to a deal conclusion, making sure that the shows such as “The Colbert Report” and “SpongeBob SquarePants” will be available even now to about 13.3 million people. The ending terms that were still not disclosed would be finalized in discussions in the upcoming few days, as reported by a Viacom executive, MTV’s parent company.
Both the sides faced a midnight deadline in order to renew contract in which the Time Warner will be paying MTV the rights fee of the twenty cable networks that include Nickelodeon, VH1, BET, Spike, TV Land, Comedy Central and MTV. Viacom demanded the rise of approximately 23 cents each subscriber in order to cover the complete channels portfolio under the threat, which it will remove the 20 networks of the systems of Time Warner. Philippe P. Dauman, the chief executive of Viacom reported that the rise was justified as there was under-pricing of the MTV Networks than with various other networks having fewer viewers. However, there was resisting by the Time Warner Cable for this demand by Viacom declaring that the present recession is no time to seek for high cable fees from the viewers. Even an executive from Time Warner labeled the demands of MTV Network as outrageous.
Although the agreement’s announcement did not involve the details regarding any monetary terms, executives of both sides took the decision of not disclosing any numbers. Also, some executive with information of this negotiation stated that the Time Warner agreed to give MTV Networks a high fee amount. Some portion or all the fee rise will be passed conveniently to the subscribers of Time Warner Cable. But none of the subscribers will face lack of watching Dora the Explorer, The Hills or the Jon Stewart.