Companies swap lawsuits about whether Time Warner has right to make Viacom programs available to subscribers on tablet. Tussle reflects growing importance of Net as distribution channel for movies, TV.
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Cable television provider Time Warner Cable and content company Viacom swapped lawsuits today about whether Time Warner has the right to make Viacom's programming available to subscribers on Apple's iPad.
The tussle reflects the growing importance of the Internet as a distribution channel for movies and TV, as streaming companies like Netflix rake in subscribers and subscription fees--and hand out sizable licensing payments to content providers. (It also reflects the iPad's runaway success.)
Complexities aside, Time Warner and its ilk are looking to prevent services such as Netflix (not to mention iTunes and other outlets) from making their own offerings look at best outdated and at worst obsolete, while Viacom and its brethren want to protect the additional revenue stream.
In a press release today, Time Warner said it had filed a "request for declaratory judgment relating to Viacom cable networks. The request asks the court to rule that Time Warner Cable's rights under its carriage agreement allow it to deliver the programming of this company over its cable systems for viewing on devices of its video customers' choosing, including iPads, in their homes."
In its own suit, filed just after Time Warner's, Viacom seeks an injunction that would stop Time Warner from making Viacom programming available on the iPad or other such devices. It's also seeking damages and asking the court to declare that the Time Warner app violates the companies' agreement. (PDF posted by Engadget)