Latest Threat to the Old Network TV Model

Al Jazeeraâ??s buyout of Current TV at a seemingly high valuation of $500 million triggered lots of discussion about the future of low-rated cable networks. The Current TV buyout was immediately greeted by an announcement from Time Warner Cable about dropping the service, taking away 9 million subs. Time Warner Cable has been at the forefront of aggressive affiliate fee negotiations with low-rated cable networks. The multiple system operator (MSO) is leading the charge to reduce or eliminate affiliate fees for low-rated networks.