TW Cable CEO Seeks Decency Compromise; Rivals Agree
Time Warner is seeking a compromise on indecency that should be shared by other media and entertainment firms, said a top executive. Offering customers individual channels, however, isn’t the answer to the concerns raised last week by FCC Chmn. Martin (CD Nov 30 p1) and others at a decency hearing, said Time Warner Cable CEO Glenn Britt. Instead, the industry must work toward another solution, he said, adding that he hasn’t figured out such a compromise. Officials at other cable operators, including Charter, said they agreed with Britt’s comments.
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Concerns over indecency on TV are widespread, Britt told a UBS media conference in N.Y.C. “There is enough of a concern that politicians of both parties, Republicans and Democrats, are raising this issue,” he said. “I think it’s important for us in the media and entertainment business to listen to this issue… We do need to come together and come to some resolution that makes people feel we've addressed this concern.” Offering cable channels on an a la carte basis isn’t “the solution, but we need to do something,” he said.
Last week, Cablevision Chmn. Charles Dolan again said he supports a la carte, breaking with the rest of the industry (CD Dec 2 p10). Asked about Dolan’s remarks by UBS analyst Aryeh Bourkoff, Britt was close mouthed. “Chuck Dolan has talked about a la carte for the last 20 years, so I think he was consistent,” he said: “I shouldn’t attack another cable operator. Next time you see them, ask if they're willing to sell their networks on an a la carte basis.”
Charter agrees with Britt’s “sentiment, given the controls available today,” said a spokesman. The cable industry is committed to a solution, said another cable official, who asked to not be identified. However, such a solution depends on the participation of cable programmers, said the person. “Are the operators trying to do something about it? Sure,” said the source: “Somebody is going to have to show some flexibility on the programming side for things to work out.” NCTA remains open to talking about a la carte with Martin and members of Congress, said a spokesman for the group. “Our concerns about a la carte are pretty clear and have been stated pretty frequently,” said the spokesman. “Beyond that, we want to stay engaged with key policymakers on the issue of television content, parental controls and related issues.”
Time Warner’s deal to buy Adelphia systems may be completed later than anticipated. Bankruptcy proceedings make it “a little difficult to predict when it’s going to close, and that’s why we are saying sometime in the first half,” said Britt. Completion after April 21, when both Comcast and Time Warner initially said they expected the $17.6 billion deal to close, would be a delay (CD Nov 22 p2). Comcast, which has said it expects to complete the acquisition in the spring, said it had nothing new to add on the timeline for Adelphia. Asked about acquiring Cablevision, after the Dolan family ended its privatization plan, Britt said he remains interested. “Cablevision would be an attractive acquisition at the right price,” said Britt. “It fits very nicely with ours. It would allow consolidation of the New York” City market, he said, adding that, “As far as I know, they're not for sale.” A Cablevision spokeswoman declined to comment on Britt’s remarks.
Time Warner Cable, seeking growth beyond pay TV, has added more VoIP customers than it forecast, said Britt. The firm has more than 1 million customers for the service -- a month ahead of schedule, he said. Asked about plans to increase broadband speeds, Britt said it was possible, though “I don’t know what people are going to do at these high speeds.” Top cable modem download speeds are about 8-10 Mbps, he said. Asked about the entry of telecom firms into the pay TV market, Britt was critical of their business strategy. “They do not have a low cost entry,” he said: “I don’t get it.”