On the Call: Time Warner Cable CEO talks about ‘roll over’ or ‘get tough’ campaign

On the Call: Time Warner Cable CEO Glenn Britt

PHILADELPHIA — In November, Time Warner Cable Inc. asked consumers for their help in reining in programming costs by voting online whether the company should “get tough” or “roll over” in its contract talks with TV stations and cable channels.

The company said customers wanted it to get tough on contracts that were expiring at the end of 2009. Programmers had threatened to pull the channels off the air without a deal.

Time Warner Cable has since signed a deal with News Corp., among others, over fees it would pay for the right to air certain Fox TV stations and cable channels. But how much the cable operator agreed to pay wasn’t disclosed.

During a conference call with analysts to discuss fourth-quarter earnings, the company said it expects a modest increase in programming costs this year.

CEO Glenn Britt explained that the whole purpose of the campaign was to tell the public that cable rate increases aren’t all going to the pockets of cable operators.

QUESTION: You had your “get tough” or “roll over” campaign. During your recent negotiations, how would you rate yourself? Did you get tough or roll over?

RESPONSE: Consumers really don’t understand how this business works. They don’t understand the fees they pay us in part go to … programming. In fact as recently as yesterday, I had somebody — sort of man on the street person — tell me he thought we just owned all of the channels.

I think the idea of the consumers being held hostage and there’s a threat that signals will be pulled off … that’s not a good consumer thing for anybody, and it’s not a great mechanism. So I think we need to reform how these negotiations work.