Maybe You’ll Get the Pay TV You Want, After All: Cablevision Sues Viacom to Break Up the Bundle

Pay television has a simple model: If you want to watch one channel, you have to pay for dozens — or hundreds — of others, whether you watch them or not. That model drives lots of consumers nuts, but it has looked very, very hard to dislodge. Now one cable provider says it will try to break up the bundle: Cablevision has sued Viacom for “illegally forcing Cablevision to carry and pay for 14 lesser-watched ancillary networks its customers do not want.”

On the face of it, Cablevision is directly attacking the core bundling principle the industry has used for years, and continues to implement as pay-TV providers and programmers sign new, long-term deals. It is accusing Viacom of an “illegal tying arrangement in violation of the federal antitrust laws,” and if it is successful, the repercussions could be widespread and significant. But note that the conventional wisdom in the pay-TV industry is that “tying” rules aren’t applicable to cable bundles — people have tried repeatedly to break the bundle using the courts and failed.