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So at least in the past when I worked for TechTV new networks paid for carriage, and eventually got paid by the cable operator once they earned their stripes (u
by mikeryan 14y ago
So at least in the past when I worked for TechTV new networks paid for carriage, and eventually got paid by the cable operator once they earned their stripes (usually 3 to 5 years)
I doubt this cost is really the relevant one though. More importantly its the opportunity cost. Cable operators are limited in bandwidth and the number of channels they can carry at any given time. Getting rid of Ovation free's up that network bandwidth for another, more profitable network (or more HD channels etc...)
Ovation and Current both were at a disadvantage as independent networks. Larger network groups like NBCU, Scripps (food network) Viacom (Comedy Central & MTV) have a better chance getting a smaller network off the ground because of their increased leverage.
Hopefully at some point the cable operators will move to a Switched Digital Video[1] system which would free up bandwidth and allow for these smaller networks to get traction a bit easier, but its not going to happen soon and (hopefully) streamed internet networks will really start to flourish. Maybe the Ovations and Currents of the world will move this way sooner now.
[1] http://en.wikipedia.org/wiki/Switched_video http://en.wikipedia.org/wiki/Switched_video
- huayhuash 14y agoActually, TWC does use SDV in most of their markets.