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Matthew Tremblay, Time Warner Cable
01/04/2012
Until recently it's about mid December the done that offer to. For six and a half percent and then bumped up to 53%. On top of that they still required us would require security fuse for again millions of dollars more. And if we didn't carry it it would be double that 53%. Increase of 106%. Approximately. Okay. So did you have a Time Warner Cable a signed contract in hand for MSG. We we had a contract that expired on December 31 but did you have a new contract or contract. Extension which specifically said the you know we agreed to this percent. No Ike into agreement was not reached however you bring up and at some point we did say that we would. Go ahead with a six and a half percent increase but we did not want to pay for fuse obviously the decline and that. And we even offered a six and a half approximately six and a half percent increase for an extension. That would go through next September's September of 2012. They also refused them that. Now unfortunately where a rat is that. she has chosen to. To pull its programming from Time Warner Cable and you know it's it's unfortunate to our customers and you know right now we do we're just waiting for to come back to the table. Okay that doesn't make a lot of sense because if Chris Johnson came to me our technical directors sit com. You know what. I wanna six and a half percent rates are right Chris welcome center and a half percent that's will put it in writing but there are you know that the and a half percent raise and then Chris came back to and that you know. Six and a half percent just isn't going to be enough. I need. 853%. Increase we're gonna have a problem. Because I'm gonna feel as though we already have a gentleman's agreement and that Chris is trying to strongly you know I I I ordinarily acts that please go to. Yeah I couldn't agree more and that 53%. increase requests from amnesty is absurd. You know we use sports Time Warner Cable sports deals for programming all throughout the country we do it every year. And so we know what a fair value for the programming is in 53% increase. Really is ridiculous with the amount of money they're asking for it would be on par with a station like ESPN. Now ESP and it charges what between four and five dollars a month that Time Warner to carry its programming I don't know the actual specifics of it. But I've seen some reports I just can't. You know what that does those dollar amounts are well I've seen this when the sabres are on and Matthew MSG is not ESPN. I agree with that and you know we love savers we'd love to savers we are huge sports fans here at Time Warner Cable. And no doubt the sabres are very. Highly watched the games are very I've watched. But you know it's not so the case when when you don't have the sabres games for their viewership. Could the fact Matthew the Buffalo Sabres in Western New York in India buffalo Niagara metro area the fact that the ratings are so. And the interest is so great. Could actually be working against Time Warner at least in Western New York because you might feel like they've got you by the short years. I don't think that's the case. Obviously we don't think actions there are fair or customers and right now we're advocating for reasonable price for their best interest but. Again this deal is not just buffalo you know New York City is a big part in this as well. And we have customers throughout New York City but and then all the markets in between. So we're concerned about all of our customers buffalo Rochester Albany a seat near your city. And you know it's. It it's really unfortunate and unfair when Imus he is is doing right now to our in New York City. Time Warner Cable competes with whom. The satellite providers. And and believe him or Cablevision are they part of the picture downstate. I truthfully I don't know specifically via the competitors in New York City. Okay what is the roughly what is the market penetration or the market should Time Warner in the seven counties of Western New York is is 20% what what would be. On approximately 330000. Customers. In you know the west near buffalo and in some parts of between 2030%. Roughly and if you based on population and about one billion and you've got 300000 will all about twenty to 30%. I'd go okay. Downstate is it more or less for the Rangers and islanders fans or is that out of your domains we just don't know is out my my don't mean western new York and buffalo focus but Western New York including Rochester so. We are at 28 minutes after nine the other voice you hear is that Matthew from Time Warner Cable now we're obviously talking about the Time Warner and MSG situation. How are you prepared Telus. How much. Time Warner Cable currently. Eighties and that's G or did up until December 31. To carry the Buffalo Sabres games I have to presume since you've made the ESPN comparison that it's somewhere between four. Sorry it would be somewhere around two three dollars. Per. Subscriber you know truthfully those numbers are not typically made public so IE you know I'm not privy to them which provides that I it's Right it is and typically these negotiations these retransmission negotiations were going through our you know. Not made public it's not because we're hiding anything it's it's because they're they're done on a regular basis there their routine almost and unfortunately this one. Has you know media a bigger impression and that's fine we understand why because of the sabres programming. Com but Matthew I've got to take a break here but we're gonna be back with you Matthew Trombley is here from Time Warner Cable. And all have some disclaimers after the 930 news. AM. Seven point. Seventh slam WBZ. And by the way we have with us in studio trouble from Time Warner Cable we're talking about the dispute between Time Warner and MSG from Time perspective. And just couple of disclaimers number one as I said yesterday during the show. I've been a long time cable subscriber. I've been a relatively happy cable subscriber few glitches along the way Time Warner was taking over from adelphia. But overall I would say that I have received good value and good service and I've thought about switching but frankly with the road runner. Aspect of Time Warner Cable it just doesn't make sense I need road runner at my house nothing else I've found it even comes close to road runners I mean Time Warner custom customers in terms about world in terms of the TV. Point number two about five years ago I think when still own the company. I did ads for Time Warner Cable I've not been compensated by the cable company in any way shape or form for many many years so I have no financial interest in this. Number three I did sleep with on Regis so. All right I'm sorry one of those is incorrect I'll let you guess which one just having a little bit of fun. Over the older is that your John Rigas and his box and Rick would say. Is that sure. or whoever would have thought that all these years later he'd be the chairman of the sale but anyway. We are talking with Matthew probably from Time Warner Cable news radio 930 and if you just joined us this is a very interesting that you. Told us earlier bat but in this is the Time Warner position. That. MSG. Isn't it Time Warner and set. We want a six and a half percent increase. And you're gonna have to carry this lame used video channel all lame ass idea yet zero weren't just my words exactly. And Time Warner was willing to pay six and a half percent extra for and that's G 66%. Above the existing deal with a one expired on New Year's Day. And and as G said stop it now do you think at this point. And I guess this is personal opinion or maybe what your corporate culture is saying did you guys at some point screw up enough acquiescing to and that's demand that refuse. It just put it on channel million. Now. You know our our position always has been that we the are in the business to provide the best value and a team and for our customers and right now we were fighting for our customers and by adding a channel like fuse that according to Nielsen data. Is viewed by less than 110 of 1% it's like MSNBC of viewers that could get the channel. You know and having to pay millions of dollars for that he'd he didn't make financial sense and it's certainly our customers don't want it. So you know really. We're rat is we're trying to fight for customers and that's you know where we're now with trying to get negotiations back on track with MSG. Unfortunately Regis we're waiting for she's come back to the table. But they came back to you after hearing you would pay the extra money for EG the sports but would not video channel and said well you're not refused 53%. Increase and you still have to that's correct. Well that's that's a real hard position now I'm sure that this has got to be hurting. On Time Warner Cable because people like your humble host right call Time Warner and was able to get a credit unlike bill because the you know the sabres were you know this isn't make a lot of sense for me for what I am in right now. You guys have got to be taken a hit either in terms of credits were cancellations. you had a lot of can't. Relations. You know no we don't think that. And actions are fair to our customers and you know right now are advocating for reasonable price. Yeah it's unfortunate that MS she pulled its programming. And right now we're trying to educate their customers so they understand their position. But. we are offering offering replacement programming right now for our customers so. On that were she was we are now offering NB ATV. Where MSG plus. Why is it the NHL network is there. As well as were offering a third free thirty day preview of the Time Warner Cable sports pass. And that's that over fifteen. Top tier sports channels that you normally would have to pay for. And we're providing that for free now. Now for a month for our customers of course nothing is gonna replace for sabres nothing is gonna replace the sabres on TV and you can watch X number sporting events but unless it's the guys you know and a have come Jews say It doesn't really you know it's it's not going to fill that hole it's not going to. Bandage that void we all feel the commercials overdosed sabres broadcasts. You know we understand that we are. You know as a said before we're alarm worst to. Com and we love sports and and that's why right now we just want amnesty to come back to the table we wanna or eateries in negotiations. You know negotiating for reasonable price now for chemistry for our customers. When can you tell us is the last time and Time Warner Cable and MSG. Head any negotiation. Communication. I don't don't know the answer like what day it was that. last sat down in and talked about it or hatter. You know a good discussion do you know if any substantive. Talks are on the calendar between and Time Warner here. you know I don't. I don't think so just because. When I've you know keep being told is that we're waiting for she back the tables of the impression is that there that mr. he's now willing to negotiate. You know another angle to others I would have to think this carriage issue amongst the TV carriers. I mean it's come up time and time and time again fox you know look we work got to deal I've ordered out of this Family Guy which would have been a tragedy for me I have to tell you. But. It's over and over and over and I'm thinking to myself with with respect to MSG. If you guys at Time Warner Cable give them and allow and that's G. 853%. Increase and they get to carry their video channel. It seems to me that that's also setting a precedent a bad president. Four other TV providers in the future to say well wait you gave them as get 53% boost where's you guys are great. you know and you're right you referenced some of the past negotiations that the past two years a few of them have been made public. And we've we've always fought the programmers to. Make sure that there we're giving a fair reasonable price to our customers we don't just. You know roll over to use a term that we have in the past we don't just roll over and say okay pay whatever increase you ask because it it does set precedents and you know and something else are you and your listeners are our viewers need to understand that you we're not the only provider that has to go through retransmission. Agreements. All the other the satellite providers cable networks and you know her performance last providers like for a prize and files. Everyone has to negotiate these agreements with every one of the I'm cable programmers it's not just Time Warner Cable on the spoke. Well you know I'm so glad you brought this up if we we talked about that yesterday on my show. Right now I've ever probably years ago. When that time wind one of the satellite companies that was that DirecTV was going through the I the two confused when when that this was going through its issues with time war. And her that we chemistry. And MSG said hey you you know that make sure to check out border there are other providers in your area that carry the Buffalo Sabres now in effigy is running the ads saying you know keep our those mean at Time Warner are yanking the sabres lollipop from your Something there are other providers there's satellite providers with Verizon bios. And what I'm asking myself is now but how long these contracts with those providers and what does this say that as a consumer my listeners are gonna be playing ping pong all the time between whatever provider. And that's G happens to deal with that that moment. Yet that's that's a great point. Don you hit the nail on the had that. Any any time now I don't know what you know when their agreements we have providers are up but. Who knows next year two years from down next month they could be. In negotiations with. One of the other providers that attack currently still have chemistry so. You never know by eight muted by switching years here really taking a gamble because everyone passed to negotiate with. These programs and with some of the provider you've got to lock yourself into a multi year two year contract and let's say that MSG throws a hissy against people with working now goes back at Time Warner that you that two year contract and a get back at the Time Warner certainly and you know with Time Warner Cable we we we use the option where you don't have to. You know outside for a contractor long term agreement. We are talking with that Time Warner's Matthew about the situation between. MSG and Time Warner and if you weren't listening earlier this morning according to have mr. trump And that's G approached Time Warner they made the offer in the summertime. We want a six and a half percent increase. And you're gonna have to carry the fuse channel. Time Warner agreed that the six and a half percent increase puts no can do on the video channel nobody watches why should we So what Time Warner and as G then came back the Time Warner it's. All right well we're not gonna were ethics and increase off the table now we want 53%. Increase and you're still gonna have to carry the video channel. Well if you don't carry it at six and a half percent why would you carry it 53%. Doesn't make sense. Here call the cable company or anything else like my bills just like you do. But I gotta take your Time Warner. You're dealing with a very competitive dynamic ever changing media market there's always competition. Whether it's from the other providers like the satellite companies whether it's from the Internet. You have competition the laws do. And if you want to offer your product to consumers you've got to keep the price competitive and you cannot keep the price competitive. If you were starting to pay program providers 53%. Increases. You can't do it because eventually the consumer is gonna pay those costs or. Asked to pay those cost that I got a tiger to make it offensive Time Warner as well my job but. 53%. In any standard is I think in absurd request to make for a race try it works sometimes see how far that I mean they loved me here WB have been upon what they asked for 53% I can pretty much tell you what the answer would be. The first word I can't say on the radio the second word would be you. All right we're talking with probably I have a question that you maybe you can help me out again I don't need to speak out of your domain of Time Warner Cable but. As I understand that oddly enough the Buffalo Sabres do not just say to MSG AM. Has she come out and televise our games MS GS to pay a fee to the Buffalo Sabres to to televise those game. Was correct in that's my understanding well I can't really speak to the details that they have an agreement with. And is she in the Buffalo Sabres have a carriage agreement. Through I think it's 20162017. But again I'm not relieve privy to that and noted the actual dealer who gets what. Okay now is there again. Is there any indication at this point. Bet this sabres themselves. Have said to MSG. Hey we want more money. To carry the games which you know if that deal as you said for next step five or so years if they couldn't do anyway because their country. Tom I really couldn't speak that you have to ask the sabres yeah I haven't I'm just interested in that because you know one wonders if yeah I just wanna know as much as I can about the situation they want to check out on the sabres web site. It's almost like the sabres were on the word for word it. The and nasty statement about the stalemate with that time or did you catch that. I did see the press release that came from chemistry yes but it was almost like word for word. On the sabres a website which I found. Interest thing it's almost like they were taken sides with chemistry. And but I have to bring this stuff up Matthew you know let's my job I have an ever increasing circle of curiosity that's going on. The The the carriage agreements and I know we've we've touched on this earlier now you know we hit in the old days we think of carriages as you know horse drawn Ebenezer Scrooge streets of London streets of Philadelphia whatever. But carriage as it applies to. Cable companies and satellite companies means something entirely different when it comes to program providers can you give us a quick definition. That even I can understand but. Heritage well. I think the correct terminology now is retransmission. Agreement. And basically what that says it's Time Warner Cable as you all the other providers. Reached an agreement if cable programmers in this case image MSG. To carry their programming. So every single channel that we televised on our. I'm on the right Time Warner cable's hundreds of channel lineups we have an agreement with their provider. To carry that channel. And the programming. Just one more one more question on and I think you've answered this already a man who's people is that why can't. Why can't carry the of start up his own network like one of the local stations picking up. And I think the reason as you said before use MS GE has the rights to those sabres games in a contract is negotiated with the sabres. That would be my understanding lead you'd have to confirm that with the sabres. Right Matthew any gas firm view that any educated guess on how long this mine is bigger than yours contest is gonna last between ministry and Time Warner. I wish I couldn't calm as I mean I don't beat a dead horse but really right now we're waiting for amnesty to come back to the table. He that we want to were eager to resume negotiations with MSG for a reasonable price offer customers. Matthew from Time Warner thank you very much for joining us good to see him and let them fight if somebody from domestic to be happy to do what. To get the other side of the story and news radio 930.
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