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Viacom, cable firm agree on payments

Associated Press / January 2, 2009
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LOS ANGELES - There's no need to cry, Dora.

The programmer Viacom and Time Warner Cable agreed on compensation that preserved access for the cable system operator's 15.7 million subscribers to Dora's Nickelodeon network, MTV, and 17 other channels.

The two sides, citing disagreement over fee hikes, had threatened a blackout at a minute past midnight yesterday that would have cut off shows such as "Dora the Explorer," "SpongeBob SquarePants," and "The Colbert Report" for Time Warner Cable customers.

Terms of the deal were not disclosed. Details must still be finalized, the companies said.

"We are pleased that our customers will continue to be able to watch the programming they enjoy on MTV Networks," said Glenn Britt, president and CEO of Time Warner Cable Inc.

Viacom Inc. president and CEO Philippe Dauman said the company was happy a deal was struck.

Sumner Redstone's Dedham-based National Amusements is the parent company of Viacom.

Viacom had mounted an advertising onslaught warning customers of the possible blackout, taking out ads featuring a tearful Dora the Explorer.

"Why is Dora crying?" the ads read. "Tonight you will lose Nickelodeon and 18 other channels from your TV." They then prompted people to call their cable company to complain.

Time Warner's Britt on Wednesday had called Viacom's demand for a 12 percent increase in fees extortion and outrageous given the recession.

Viacom countered that the requested increase amounted to an extra $2.76 annually per subscriber.

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