Viacom sues Cablevision over iPad streaming TV app

Viacom has filed suit to block Cablevision Systems from streaming its programming over the Optimum App for iPad, which offers Cablevision's 3 million households free access to about 300 live television channels as well as video-on-demand content. The suit, filed Thursday in federal court in Manhattan, seeks an injunction to stop Cablevision from streaming content originally broadcast across Viacom-owned networks including MTV, Comedy Central and Nickelodeon. Viacom is also seeking damages.

Cablevision introduced the Optimum App in April 2011. The solution, powered by Cablevision's proprietary Advanced Digital Cable network, offers iPad owners essentially the same programming and interactive services available over conventional cable. Because the Optimum App is optimized solely for Wi-Fi networks, users cannot access content outside of the home.

Cablevision states it controls the right to distribute programming to devices like the iPad per terms of its existing distribution agreements with content providers. "Cablevision's very popular Optimum App for iPad, which has been available to our customers for nearly three months, falls within our existing cable television licensing agreements with programmers--including Viacom," Cablevision said in a statement. "It is cable television service on the iPad, which functions as a television, and is delivered securely to our customers in the home on Cablevision's own proprietary network."

Viacom disagrees. "Cablevision, instead of negotiating with Viacom for such rights, simply launched the iPad App with Viacom content," the lawsuit contends, adding talks have "not resulted in an acceptable arrangement." Viacom states that mobile streaming services like the Optimum App undercut its ability to negotiate licensing agreements with platforms like Hulu and Netflix: "Selling the content of its networks to broadband content providers is an important component of Viacom's future business plan," the suit argues, adding that Cablevision's app "has and will continue to negatively impact the viability of that business."

Viacom is also squabbling with Time Warner Cable over the latter's own iPad solution. The Time Warner app--issued weeks prior to the Optimum App--resulted in a flurry of cease and desist notices, prompting the cable provider to drop content from Viacom, Fox and Discovery Communications. Fox and Discovery later relented and allowed Time Warner to stream their content; Viacom and Time Warner are currently working to "resolve this and other litigation and potential litigation."

For more:
- read this Wall Street Journal article

Related articles:
Cablevision iPad app touts access to 300 live TV channels
Viacom debuts multi-platform Atom.com
Netflix signs multi-platform streaming video deal with Miramax
Android fragmentation hinders Netflix video app rollout