|reply to travelguy |
Re: And in other news...
The difference is that TBS wasn't really a dominant player, so Schwartz really didn't face any huge penalty if he had decided not to license to them. He could have continued cutting deals with local TV stations.
However, if a company like TW tells a programmer that, in order for TW to carry their shows, they must agree not to get into Internet distribution is a huge deal since, if the programmers are turned away by cable, they'll starve. Essentially, the same thing was happening with satellite distribution in the 1980s. Cable didn't want programmers to sell to satellite dish owners, and it took Congress passing a law to put a stop to that. Granted, it wasn't enough to save the BUD industry, but you can bet that, had such a law not been passed, the cable companies would have frozen DirecTV and Dish out of the market.