Wednesday, May 12, 2010

ABC vs Cablevision


I liken the standoff between ABC and Cablevision to two drag racers racing to the edge of a cliff. Eventually, someone has to give. In this case it was ABC but I dont think it was because of the negative PR generated by Cablevision.
The decisions these companies are making are on such a different level than we can understand, looking in from the outside its easy to draw the conclusion that ABC buckled under the pressure of Cablevision. But ABC, which is owned by Disney is a major conglomerate and have to think about the many different financial impacts conceding to Cablevision's demand might mean to parent and sister companies in the Disney family. From what I can tell it seems as though nothing more than posturing and negotiation tactics.
The only leverage I could see Cablevision having against ABC is in areas where only Cablevision is offered. Not being inside the company I couldn't tell you. But I do know that cable tv and internet in New Jersey is a competative market, one in which the consumer wins.

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