(WireImage)
Time Warner Cable boss Glenn Britt’s message to low-rated cable networks is simple: You’ll get nothing, and like it.
Britt — who is looking to rein in soaring programming costs by culling channels with smaller audiences — has started telling some programmers that they can either go dark or get no fee at all in return for continued distribution on his service.
The networks must “take carriage for no payment,” meaning forfeit their usual subscriber fees while they work to improve their ratings, according to one person familiar with the talks.
The take-it-or-leave-it approach has come up in renewal negotiations with several channels, including IFC and WE TV, whose contracts end Jan. 1. Those talks are expected to go down to the wire, sources said.
Typically, programmers ask for a 10 percent to 15 percent increase in per-subscriber fees each time a pay-TV contract comes up for renewal. IFC and WE are likely asking for less than 10 cents a month per subscriber.
The networks are part of the James Dolan-controlled AMC Networks. The flagship AMC channel isn’t part of the talks and is unlikely to be in danger of being booted, as it aired cable’s highest-rated show of the year, “Walking Dead,” which garnered an average 11.7 million viewers.
Already, Time Warner Cable, New York City’s largest cable provider, has kicked off at least one network that refused to accept its terms. Ovation, an arts and music channel, will be dropped at the end of the year.
Sources say Crown Media’s Hallmark channels, including the movie channel that was considered on the bubble, have reached a deal for renewal with Time Warner.
The two AMC Networks channels aren’t the only ones coming under fire.
Several sources say NuvoTV, an English-language cable channel targeting Hispanics, is also getting booted from digital basic as part of a realignment of Time Warner Cable’s programming tiers. Nuvo, previously known as Si TV, is part owned by singer and actress Jennifer Lopez.
Britt has been trying to cut back on programming costs from less popular networks in response to spiraling fees from more popular channels, in particular sports programming.
On its customer relations website, twcconversations, Time Warner Cable contends: “We are pushing back against TV networks that demand more money without delivering more value.”
The company says if it paid 2 cents more per day for the 80 channels it carries, it would add $48 a month to a bill. While the network hasn’t announced plans to pass along any cost savings to customers from its cable culling, it says it is “developing more flexible packaging options.”
Separately, Time Warner Cable has been strong-arming smaller channels when it comes to what content they air online — even on the networks’ own websites.
The cable company wants to be the first place customers see TV shows. As part of a push to preserve the current pay-TV system, it is pushing back against networks that make content available for free online, according to sources.
Time Warner Cable declined comment.