Pay-TV popularity causes hook-up mania
The sudden M&A frenzy in pay-TV is putting pressure on programmers to bulk up, sources told The Post.
The Comcast-Time Warner Cable merger, which counts Charter Communications as a partner, has prompted two conversations about a deal.
Phone giant AT&T and Dish have both approached DirecTV, according to published reports.
The satellite broadcaster has already been approached about a possible get-together by rival Dish Network.
With the pace of conversations suddenly heating up, the distributor deals and possible deals are certain to alter the playing field for programmers — whose biggest paying customers are the cable and satellite companies who pay monthly affiliate fees based on numbers of subscribers.
While programmers are seeing a slew of new customers for archive TV shows and movies online, the consolidation of distributors, and their added power, is a concern.
Said one senior programming source: “On the programming side, people are looking at Time Warner and wondering ‘Does it get together with Viacom?’ They would have a concentration of must-have channels.” The source did not say any talks have occurred but simply pointed to the two companies as among the most likely to bulk up.
Time Warner houses channels including premium TV powerhouse HBO and news service CNN alongside TBS which airs basketball. Viacom, meanwhile, owns global brands including Nickelodeon, MTV and Comedy Central.
Both companies own major Hollywood studios.
Time Warner CEO Jeff Bewkes is jettisoning the company’s magazine division in the coming months, leaving folks wondering if it will use the cash to get bigger in TV.
In recent years, most big programmers have had their eye on international expansion. That might be about to change.
Earlier this week, Viacom acquired over the air broadcaster Channel 5 in the UK for $757 million, and AMC Networks acquired cable programmer Chello in a $1 billion deal from Liberty Global in February.
Discovery Communications acquired a 51 percent stake in Eurosport in January.
US programmers may now be looking at their domestic markets with new urgency.
While nothing came of it, Discovery examined the possibility of a get-together with Scripps, which owns HGTV.
CBS, which converted its billboard unit into a REIT, acquired TV Guide, which it owns with indie movie company Lionsgate.
The advantage of bulking up is to maintain the leverage programmers have over distributors that largely take the blame in blackout situations when parties can’t agree on new deals.
The major programming entities have been careful not to share their views, publicly at least, on cable consolidation already in full swing.
On May 8, Comcast will argue before the Senate Judiciary Committee that its acquisition of TWC should be allowed. It did the same in the House in April.
Viacom denied it had any interest in selling any of its networks. Time Warner declined comment.