Cablevision Sues Viacom Over Channel Bundling

BETHPAGE: Cablevision Systems Corporation has filed an antitrust lawsuit against Viacom for illegally forcing it to carry and pay for 14 lesser-watched networks in order to receive the more popular channels.

Cablevision’s suit alleges that Viacom abused its market power by including the must-have networks such as Nickelodeon, Comedy Central and MTV in a forced deal to carry the 14 less-popular ancillary channels, including Palladia, MTV Hits and VH1 Classic. Cablevision claims that it was coerced by Viacom with a threat to impose massive financial penalties unless Cablevision complied with Viacom’s demands. Cablevision is saying that Viacom’s conduct harms the platform and its customers and also impairs competition by forcing it to carry networks that not all subscribers wants, while other networks are excluded from distribution, preventing Cablevision from being able to differentiate its services and harming subscribers.

Cablevision wants a permanent injunction that bars Viacom from conditioning carriage of any or all of its core networks on Cablevision’s licensing any or all of Viacom’s ancillary networks.

Cablevision offered the following statement: "The manner in which Viacom sells its programming is illegal, anti-consumer and wrong. Viacom effectively forces Cablevision’s customers to pay for and receive little-watched channels in order to get the channels they actually want. Viacom’s abuse of its market power is not only illegal, but also prevents Cablevision from delivering the programming that its customers want and that competes with Viacom’s less popular channels."