Re: AT&T/Comcast rates

[Garrett Wollman <wollman@lcs.mit.edu>]

<<On Sat, 23 Nov 2002 14:35:09 -0800 (PST), Dan Billings <billingsdan@yahoo.com> said:

> Most program providers push to make sure that their
> most wanted channels are part of the basic package. 

More to the point, they out-and-out *require* it.

If you want to carry an ABC O&O (or even many affiliates if the affil
is tight with Mickey) on your cable system, you *must* carry all of
the Disney channels in extended-basic or digital-basic tiers on your
cable system (and pay rights fees for every subscriber whether they
have any interest in watching or not).  You want to offer HBO
multiplex on your digital system?  Better be prepared to stick all
your subscribers with the programming costs for ten unrelated AOL-TW
channels.

If you're a Comcast ex-AT&T customer, better be prepared for a little
extra screwage, thanks to our *dear* friend John Malone: Comcast is
obligated to pay a certain percentage (with no limit on the dollar
amount) of Liberty Media's programming-development costs, or else
commit to buying the results, for the next twenty years.

That's the way the game is played these days....

-GAWollman