Random Comment On Cable Television: Time Warner Drops CBS

Updates

Later, 10:45 am CDT: Yahoo!Finance is reporting -- 

While studies have shown that nearly one third of households will consider cutting the cord this year, only one percent will actually do it. Even the CEO of Cablevision James Dolan says he rarely watches TV, but when he does, it's via Netflix  and over a broadband internet connection. In fact, Dolan goes as far as saying that the cable industry is living in a "bubble," and that he can envision a time when his company doesn't even offer TV service.

In some ways, that's the catch or the back-up plan for Time Warner Cable in this spat, in as much as cord-cutting typically involves ditching TV but leaves internet intact. So even if you leave Time Warner Cable - or whichever provider - there's a good chance you will still remain a customer.

On the content side of things, where costs perpetually rise but blockbusters are hit-or-miss, the worry is more about making good shows and covering big events than it is where to show them. Still, CBS points out that this is the first time in its history that it has been booted from a platform, whereas Time Warner Cable has had 50 such blackout disputes in the past five years alone.

Pretty much goes along with what I posted earlier.  In the past, networks like CBS "won" but this time it might be different.
 

Original Post

I'm sure you are all aware that Time Warner Cable has dropped CBS. Now this story from The Wall Street Journal:

Predicting that transmission of TV will move to the Internet eventually, Cablevision Systems Corp.  Chief Executive James Dolan says "there could come a day" when his company stops offering television service, making broadband its primary offering.

His comments may be the first public acknowledgment by a cable CEO of the possibility of such a shift, long speculated about by analysts. It comes amid growing tensions between cable operators and channel owners over rising programming costs, highlighted Friday night when Time Warner Cable Inc.  dropped CBS from its channel lineup in major markets such as New York and Los Angeles.

If cable operators drop TV service, charging only for broadband, channel owners would have to sell directly to the public or through Web outlets.

In a 90-minute interview on Friday, the usually media-shy 58-year-old executive also talked about his marriage, his relationship with his father Chuck and his after-hours role as a singer and songwriter. He said his rock band, JD & the Straight Shot, toured with the Eagles last month.

Mr. Dolan said that on the rare occasions he watches TV, it is often with his young children, who prefer to watch online video service Netflix, using Cablevision broadband.

This goes along with my view which I have discussed earlier.

I haven't had cable television for months and I don't miss it at all. I saw both the NASCAR race and Tiger Woods handily win at Firestone yesterday at the neighborhood sports bar; I used to walk there but now that I have my bikes, I bicycle there. For about $15 (drinks and a salad) it's a great bargain. Of course, the Texas Rangers - Oakland game was being televised, and the Rangers were ahead when I left. But I digress.

I don't miss CBS at all. Or NBC. Or ABC. There are a few other advantages to not having cable television, but perhaps that story another time. 

It will be interesting to watch the Time Warner - CBS feud play out. I think TWC has the upper hand:

• TWC customers may complain to TWC but they won't disconnect their service
• TWC customers may complain to TWC but they don't want CBS if it means their cable bill will go up
• Many TWC customers are probably paying at the upper end of what they feel they can afford
• Up to 47% of TWC customers may not be of the same political "bent" as CBS News, and have decided to boycott CBS (even before this latest spat); they won't miss CBS at all 
• TWC customers are probably spending more time "internet channels" (including social media like Facebook) than on the four major networks
• TWC customers have more than enough content without worrying about CBS
• CBS hit shows will go into syndication as soon as six months after first airing 
• Netflix movies, Blu-Ray movies, etc., air/play without commercial interruption

That last point is a huge deal. Customers pay twice: first to TWC for the cable package, and then again to have to sit through the commercials.

Steve Jobs once said that television and computers won't converge. Depending on the definition of "converge" he may be right; he may be wrong. His premise was that people turn on the computer to do exercise their brains; they turn on the television to rest their brains. The latter is still true. It is less true for the former, though when using a computer even for streaming television, there is a bit of interactive involvement (though minimal, in many cases).

I am watching the 22 episodes of "Twin Peaks" and, without commercial interruption, it is quite incredible. "Twin Peaks" by the way does not age. Nor does "Miami Vice."