Zacks_Analysts' Blog : Will TV on Tablets Become a Reality - Analyst Blog

Watching TV programs on tablets may become a reality. From last March, the entertainment industry is witnessing a new legal battle between cable operators and cable channels once Time Warner Cable Inc. (TWC) introduced a new application to stream TV programs on the Apple Inc. (AAPL) developed iPADs. Therefore, any subscriber can watch the TV programs just by downloading the application on iPAD.

As soon as Time Warner Cable introduced this innovative application, Viacom Inc. (VIA.B) was the first among several content developers to protest. The company argued that it has given right to Time Warner Cable to air its program on television and not to watch from any other devices. Viacom filed a lawsuit in April 7, 2011 claiming that Time Warner Cable broke its existing agreement and violated the copyright act. In reply, Time Warner Cable argued that tablets are nothing more than another screen to watch TV shows at home. Therefore, it never violated any agreement or copyright act.

Viacom got immediate support from other TV content developers such as News Corp. (NWSA) and Discovery Communications Inc. (DISCA). These companies were afraid of losing a lucrative stream of income. On the other side, cable operators such as Cable Vision Systems Inc. (CVC) and Comcast Corp. (CMCSA) stood up in support of Time Warner cable. 

Recently, a U.S. District Judge in Manhattan has approved a “standstill” agreement for this case, which will put this lawsuit in hold. The judgment was followed by a mutual negotiation, which is currently going on between Viacom and Time Warner Cable. It remains to be seen whether TV streaming on tablets comes through negotiated settlement or a prolonged legal battle is waiting.