Business

New year no-show

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More than 3 million Cablevision customers may kick off the new year with a TV diet.

Viacom’s 17 cable networks, including MTV, Comedy Central and Nickelodeon, could go dark on Cablevision on Jan. 1 because of a dispute over programming fees.

Viacom is seeking a fee increase from the Bethpage-based cable operator when their current five-year deal expires on Dec. 31.

Reps for both sides declined to comment on the looming showdown, which The Post first reported yesterday.

Viacom, controlled by Chairman Sumner Redstone, has been investing heavily in programming to boost flagging ratings at its youth-oriented channels, home to popular shows such as “Teen Mom,” “The Daily Show with Jon Stewart” and “SpongeBob Squarepants.”

Viacom’s showdown with Cablevision could result in its second big blackout this the year.

DirecTV’s 20 million customers lost Viacom’s channels for nine days in July before a widespread outcry pushed the two sides to reach an agreement.

Still, both sides suffered from the prolonged blackout, with Viacom losing ad revenue and DirecTV shedding subscribers.

While the size of the proposed increase couldn’t be learned, Viacom is arguing that it accounts for 20 percent of viewing but only 8 percent of Cablevision’s overall programming fees, sources said. Viacom made a similar argument in its negotiations with DirecTV.

Cablevision isn’t afraid to play hardball either.

Its last dispute over distribution fees with the Tribune Co. lasted more than two months and deprived customers in New York of local station WPIX 11.

Such spats are becoming increasingly common in the pay-TV industry as distributors try to offset soaring costs for sports and other programming.

The Cablevision-Viacom standoff comes just days after Time Warner Cable made good on its threat to stop paying for lower-rated networks.

After booting arts network Ovation, Time Warner has told other cable channels with relatively small audiences that it will carry them for free or not at all.

Ironically, AMC Networks — which is also controlled by Cablevision’s founding Dolan family — is in the firing line for asking Time Warner Cable for higher fees to carry its IFC and WE TV channels.

No doubt Cablevision will also argue against increases for scores of smaller channels that are part of the Viacom bundle, such as MTV2, Logo and VH1 Soul.

Sources say rising sports costs could lead to a radical shake-out in the industry, with distributors looking to put a cap on programming costs by dumping smaller networks even as they hike fees elsewhere.

Cablevision increased its fees for high-speed Internet access by 3.2 percent for customers who do not participate in promotional pricing packages.

Meanwhile, DirecTV said yesterday it would increase subscriber fees by 4.5 percent starting Feb. 7.