Quote:
Originally Posted by HDNet Fights
Sure - thats just simple math. Of course TWC is going to pay us more - thats growing our business. If you don't want us to do that, then you can't expect our programming offerings to grow.
We slaughtered every other network on our tier, as far as ratings are concerned. In fact, we beat a lot of HD networks in digital basic (who had as much as 15 million more potential viewers than we did). Ratings showed that people watched HDNet, largely thanks to the MMA community. TWC wanted to keep us on a tier that paired us with bad products, and we wanted to be available to more people (and cheaper to the consumer). Therefore, an agreement hasn't been reached.
We want to grow our business so we can bring you more live MMA than we already do. It costs a whole lot more to show an MMA live event than a taped one. You guys ask for live events, so we deliver them. In order to keep delivering them and be able to give you more, we need to grow as a business. If you don't agree with that, I don't know what to tell you.
We slaughtered every other network on our tier, as far as ratings are concerned. In fact, we beat a lot of HD networks in digital basic (who had as much as 15 million more potential viewers than we did). Ratings showed that people watched HDNet, largely thanks to the MMA community. TWC wanted to keep us on a tier that paired us with bad products, and we wanted to be available to more people (and cheaper to the consumer). Therefore, an agreement hasn't been reached. We aren't victims, we just disagree with TWC on the value of our product. If you think we are a valuable product, let TWC know, and that will speed up the process.
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HD,
I appreciate the prompt and informative response.
I, personally, love HDNet and hate that I can't get it right now on TWC. But I think the smart fight here is to help pressure TWC *and* HDNet to get a deal done and get it moved on as a continuing part of their service.
I don't doubt that HDNet may well have been pulling stellar ratings when compared to the same segment of programming, but I wanted to try and give my interpretation of the situation so that folks maybe can understand it a little more clearly.
SUM UP:
HDNet noticed they were kicking some butt in ratings as compared to other "pay HD" networks listed with TWC. As a result, HDNet proposed moving their channel off of the "Pay HD" service that TWC offers and requested that it be part of TWC's "free HD" lineup. In so doing, HDNet may have offered a lower price for TWC ***per subscriber*** but, as the subscriber base would go from PayHD -> FreeHD, this would represent a huge increase in subscriber base, and we can safely assume, higher total revenue for HDNet. (which is to say that unless HDNet was offering a price decrease that would represent an inverse ratio to the new subscriber base multiple increase they would receive, they would of course get more money out of this deal)
The net result of the above mentioned offer from HDNet is that TWC would be paying more **OVERALL** (though less per subscriber) to HDNet.
Given this information, it seems that HDNet was asking for more money and more subscribers to grow their brand (not unreasonable), and TWC would be working to negotiate a price-per-subscriber that would not substantially increase their costs to carry the HDNet programming (also not unreasonable).
As an intelligent consumer, I'm well aware that the cost of HDNet programming as part of the standard "Free HD" segment may eliminate the requirement for me to have to pay an extra fee to TWC for the "Pay HD" services, but we must also realize, that it would coincide with a corresponding "minor" rate-hike on the standard digital (Free HD) service.
So, X number of viewers might no longer need to pay ~$5 to get HDNet and the other Free HD channels, but the entire TWC subscriber base might pay an additional 0.25 to $1 for their standard digital service, which would now include HDNet. (these specific dollar amounts are arbitrary, they are only for the purpose of the discussion, not indicative of any actual amounts in the negotiation)
It would seem that HDNet and TWC couldn't agree on a dollar amount that satisfied both the concerns addressed in the above sum-up of what's going on here. HDNet likely wanted a minimum amount per subscriber, and TWC likely felt that cost couldn't be justified by the amount of people who would benefit from the service.
Obviously, I, as an avid MMA fan would LOVE for HDNet to be part of the "Free HD" lineup, but I also know that there are many that wouldn't.
I'm not going to jump on either side's band wagon, nor point fingers at either HDNet or TWC, as I don't know the numbers, and I therefore couldn't jump to the conclusion of who might be acting fair or unfair, reasonable or unreasonable (with the specific respect to exact numbers.) I can only say that the concept of boths sides negotiating this is not unreasonable without respect to the actual dollar amounts.
As a result, all I can do is urge both HDNet and TWC to continue negotiating in an effort to get HDNet back on TWC in either pay form or "free" (even tho that cost WOULD be borne by the consumer and therefore NOT free), so that we might watch our MMA deliciousness!
Please keep working with TWC, HDNet. I'll call TWC and urge them to do the same. I love your MMA programming! Thanks!
--Chris