What Ousted Groupon CEO's <cite>Battletoads</cite> Reference Meant



Groupon CEO Andrew Mason is many things, and one of them is clearly a Nintendo kid from the 1980s. After his firing Thursday from the daily-deals company that he co-founded, he sent a jocular e-mail to his staff admitting that he had been fired, asking for recommendations for a “fat camp” so he could lose the “Groupon 40,” and most inscrutably (to some) comparing his dismissal to playing the videogame Battletoads:


I’m OK with having failed at this part of the journey. If Groupon was Battletoads, it would be like I made it all the way to the Terra Tubes without dying on my first ever play through.


This was, to put it lightly, an extremely specific metaphor. It probably has a lot of investors scratching their heads today. To those of us about Mason’s age who played the same videogames he did, it makes total sense.


You might infer, with no other context, that Battletoads must be a really hard videogame. It’s probably fair to say that for those of us whose primary gaming device was the Nintendo Entertainment System, Battletoads was the hard videogame. It was by Rare, the developer that seemed to squeeze more juice out of the aging 8-bit console than anyone, even Nintendo itself, could manage. (It got a license to develop software after it impressed Nintendo by reverse-engineering the device.) Battletoads was the pinnacle of its performance on the NES. It had absolutely gorgeous graphics. Every level had a totally different gameplay feel than the last, never feeling repetitive.


And it was one of the hardest damned games, to the point of absolute unfairness. Beating the first level wasn’t so bad, completing the second one took some practice, and good luck after that unless you had the patience of Job. You couldn’t play Battletoads levels once and scrape by with quick reflexes; you had to play them over and over again, memorizing the traps and enemies so that you could avoid them with pixel-perfect precision. Some players stuck it out; some (like me) gave up.



Mason clearly stuck it out, because the specific level he referenced, the Terra Tubes, comes quite late in the game. Aficionados consider it the difficile de la difficile of Battletoads levels. Watch the video above and see how the player begins to dodge the game’s traps before they even appear on the screen — the only way to get around them.


So there are really two specific things that Mason is implying with this reference:


  1. To get to the Terra Tubes on one’s first try, having never played the game before, would be a Herculean, almost impossible, achievement. Therefore, getting this far with Groupon was in and of itself either a colossal feat of genius or a lucky miracle, depending on how charitably you want to interpret the metaphor.

  2. Dying on the Terra Tubes, which are designed to make you die over and over, is no shameful thing.

Whether you agree with Groupon’s ousted CEO on these points or not is up to you, of course, but now you understand what he was saying.


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Cellar victim Kampusch raped, starved in film of ordeal






VIENNA (Reuters) – A new film based on the story of Austrian kidnap victim Natascha Kampusch shows her being repeatedly raped by the captor who beat and starved her during the eight-and-a-half years that he kept her in a cellar beneath his house.


Kampusch was snatched on her way to school at the age of 10 by Wolfgang Priklopil and held in a windowless cell under his garage near Vienna until she escaped in 2006, causing a sensation in Austria and abroad. Priklopil committed suicide.






Kampusch had always refused to respond to claims that she had had sex with Priklopil, but in a German television interview on her 25th birthday last week said she had decided to reveal the truth because it had leaked out from police files.


The film, “3,096 Days” – based on Kampusch’s autobiography of the same name – soberly portrays her captivity in a windowless cellar less than 6 square metres (65 square feet) in area, often deprived of food for days at a time.


The emaciated Kampusch – who weighed just 38 kg (84 pounds) at one point in 2004 – keeps a diary written on toilet paper concealed in a box.


One entry reads: “At least 60 blows in the face. Ten to 15 nausea-inducing fist blows to the head. One strike with the fist with full weight to my right ear.”


The movie shows occasional moments that approach tenderness, such as when Priklopil presents her with a cake for her 18th birthday or buys her a dress as a gift – but then immediately goes on to chide her for not knowing how to waltz with him.


GREY AREAS


Antonia Campbell-Hughes, who plays the teenaged Kampusch, said she had tried to portray “the strength of someone’s soul, the ability of people to survive… but also the grey areas within a relationship that people don’t necessarily understand.”


The British actress said she had not met Kampusch during the making of the film or since. “It was a very isolated time, it was a bubble of time, and I wanted to keep that very focused,” she told journalists as she arrived for the Vienna premiere.


Kampusch herself attended the premiere, looking composed as she posed for pictures but declining to give interviews.


In an interview with Germany’s Bild Zeitung last week, she said: “Yes, I did recognize myself, although the reality was even worse. But one can’t really show that in the cinema, since it wasn’t supposed to be a horror film.”


The movie, made at the Constantin Film studios in Bavaria, Germany, also stars Amy Pidgeon as the 10-year-old Kampusch and Danish actor Thure Lindhardt as Priklopil.


“I focused mainly on playing the human being because… we have to remember it was a human being. Monsters do not exist, they’re only in cartoons,” Lindhart said.


“It became clear to me that it’s a story about survival, and it’s a story about surviving eight years of hell. If that story can be told then I can also play the bad guy.”


The director was German-American Sherry Hormann, who made her English-language debut with the 2009 move “Desert Flower”, an adaptation of the autobiography of Somali-born model and anti-female circumcision activist Waris Dirie.


“I’m a mother and I wonder at the strength of this child, and it was important for me to tell this story from a different perspective, to tell how this child using her own strength could survive this atrocious martyrdom,” Hormann said.


The Kampusch case was followed two years later by that of Josef Fritzl, an Austrian who held his daughter captive in a cellar for 24 years and fathered seven children with her.


The crimes prompted soul-searching about the Austrian psyche, and questions as to how the authorities and neighbors could have let such crimes go undetected for so long.


The film goes on general release on Thursday.


(Reporting by Georgina Prodhan, Editing by Paul Casciato)


Movies News Headlines – Yahoo! News





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Global Health: After Measles Success, Rwanda to Get Rubella Vaccine


Rwanda has been so successful at fighting measles that next month it will be the first country to get donor support to move to the next stage — fighting rubella too.


On March 11, it will hold a nationwide three-day vaccination campaign with a combined measles-rubella vaccine, hoping to reach nearly five million children up to age 14. It will then integrate the dual vaccine into its national health service.


Rwanda can do so “because they’ve done such a good job on measles,” said Christine McNab, a spokeswoman for the Measles and Rubella Initiative. M.R.I. helped pay for previous vaccination campaigns in the country and the GAVI Alliance is helping to finance the upcoming one.


Rubella, also called German measles, causes a rash that is very similar to the measles rash, making it hard for health workers to tell the difference.


Rubella is generally mild, even in children, but in pregnant women, it can kill the fetus or cause serious birth defects, including blindness, deafness, mental retardation and chronic heart damage.


Ms. McNab said that Rwanda had proved that it can suppress measles and identify rubella, and it would benefit from the newer, more expensive vaccine.


The dual vaccine costs twice as much — 52 cents a dose at Unicef prices, compared with 24 cents for measles alone. (The MMR vaccine that American children get, which also contains a vaccine against mumps, costs Unicef $1.)


More than 90 percent of Rwandan children now are vaccinated twice against measles, and cases have been near zero since 2007.


The tiny country, which was convulsed by Hutu-Tutsi genocide in 1994, is now leading the way in Africa in delivering medical care to its citizens, Ms. McNab said. Three years ago, it was the first African country to introduce shots against human papilloma virus, or HPV, which causes cervical cancer.


In wealthy countries, measles kills a small number of children — usually those whose parents decline vaccination. But in poor countries, measles is a major killer of malnourished infants. Around the world, the initiative estimates, about 158,000 children die of it each year, or about 430 a day.


Every year, an estimated 112,000 children, mostly in Africa, South Asia and the Pacific islands, are born with handicaps caused by their mothers’ rubella infection.


Thanks in part to the initiative — which until last year was known just as the Measles Initiative — measles deaths among children have declined 71 percent since 2000. The initiative is a partnership of many health agencies, vaccine companies, donors and others, but is led by the American Red Cross, the United Nations Foundation, the Centers for Disease Control and Prevention, Unicef and the World Health Organization.


This article has been revised to reflect the following correction:

Correction: March 1, 2013

An article on Tuesday about a coming measles-rubella vaccination campaign in Rwanda misstated the source of the vaccine and some financing for the campaign. The vaccine and financing are being provided by the GAVI Alliance, not by the Measles and Rubella Initiative.



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F-35 Jets Returned to Service by Pentagon





The Pentagon lifted its grounding of the new F-35 jet fighter on Thursday after concluding that a turbine blade had cracked on a single plane after it was overused in test operations.


The office that runs the program said no other cracks were found in inspections of the other engines made so far, and no engine redesign was needed.


It said the engine in which the blade cracked was in a plane that “had been operated at extreme parameters in its mission to expand the F-35 flight envelope.”


The program office added that “prolonged exposure to high levels of heat and other operational stressors on this specific engine were determined to be the cause of the crack.”


All flights were suspended last week for the 64 planes built so far once the crack, which stretched for six-tenths of an inch, was found during a routine inspection.


Pratt & Whitney, which makes the engines, investigated the problem with military experts. The company, a unit of United Technologies, said on Wednesday that the crack occurred after that engine was operated more than four times longer in a high-temperature flight environment than the engines would in normal use.


The F-35, a supersonic jet meant to evade enemy radar, is the Pentagon’s most expensive program and has been delayed by various technical problems. The program could cost $396 billion if the Pentagon builds 2,456 jets by the late 2030s.


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Santa Cruz hit hard by officers' deaths









SANTA CRUZ — Flags throughout this sparkling beach town flew at half-staff Wednesday. The entire Police Department was meeting with grief counselors. Handmade signs cropped up, sympathy cards to a stunned city.


"Thank you for your service Santa Cruz Police Department. RIP Detective Baker. RIP Detective Butler." That's what Mary Gregg wrote in neat black letters on yellow construction paper, hanging her message in the window of the downtown check-cashing store where she works.


"Something," she felt, "had to be said today."





Best known for its surfing museum and a roller coaster that Bay Area newspaper columnist Herb Caen described as "one long shriek," Santa Cruz is not used to the kind of pain that rippled through town the day after a gunfight left two veteran officers — and the man they were investigating — dead.


The city's Police Department, which has less than 100 sworn officers, had operated for 150 years without losing a single one in the line of duty. Until Tuesday afternoon, when two veteran detectives in plainclothes walked up to Jeremy Goulet's house as part of a misdemeanor sexual assault investigation.


Sgt. Loran "Butch" Baker, 51, and Det. Elizabeth Butler, 38, were killed on Goulet's doorstep, Santa Cruz County Sheriff Phil Wowak said during a news conference near an impromptu memorial at police headquarters.


"We don't know all that happened when they came into contact with Goulet," said Wowak, whose department is leading the investigation so Santa Cruz police can mourn. "We do know what was left in the aftermath."


The 35-year-old Goulet, who had a long history of run-ins with the law, killed and disarmed the detectives before fleeing in Baker's car, Wowak said. Law enforcement officers from throughout the region began a sweep of the Santa Cruz neighborhood where Baker and Butler were slain. A short time later, Goulet ditched the car and tried to flee on foot.


In the ensuing gun battle, Wowak said, Goulet shot up a firetruck, sending firefighters, medical personnel and passersby scrambling. After killing the suspect, authorities discovered Goulet had been wearing body armor and had three guns.


"It is our belief that two of the three weapons belonged to the Santa Cruz Police Department, but we haven't confirmed it," said Wowak, adding that it was still unclear whether Goulet had taken the body armor from Baker's car or had it on before the shooting broke out.


"We know now that he was distraught," the sheriff said. "We know now that he had the intention of harming himself and possibly the police.… There's no doubt in anyone's mind that the officers who engaged Goulet stopped an imminent threat to the community."


Goulet had been arrested Friday on suspicion of disorderly conduct. Local news accounts said he had broken into the home of a co-worker and been fired from his job at The Kind Grind coffeehouse Saturday. A manager at the beachfront shop declined to comment Wednesday.


According to Goulet's father, the barista — who recently had moved from Berkeley to Santa Cruz — was a ticking time bomb who held police and the justice system in deep contempt. Ronald Goulet, 64, told the Associated Press that his son had had numerous run-ins with the law and had sworn he would never go back to jail.


But the elder Goulet said he never thought his troubled son would turn to such violence.


Goulet said his son undermined any success in the military (he reportedly was a member of the Marine Corps Reserves and later the Army) or college because of an insatiable desire to peep in the windows of women as they showered or dressed.


"He's got one problem, peeping in windows," his father said. "I asked him, 'Why don't you just go to a strip club?' He said he wants a good girl that doesn't know she's being spied on, and said he couldn't stop doing it."


In 2008, a Portland, Ore., jury convicted Jeremy Goulet on misdemeanor counts of unlawful possession of a firearm and invasion of personal privacy after he peeked into a woman's bathroom as she showered, said Don Rees, a chief deputy district attorney in Multnomah County.


Goulet faced additional charges, including attempted murder, after he allegedly fired a gun at the woman's boyfriend. The two had fought after Goulet was spotted outside the woman's condo, but a jury acquitted him of those charges, Rees said.


During the trial, Goulet admitted that he liked to use his cellphone to record unsuspecting women undressing, according to the Oregonian newspaper. Prosecutors alleged he had peeped at women "hundreds of times" without getting caught.


Goulet was given three years' probation, Rees said, but spent time in jail after his probation was revoked.





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Meet the Common Man's Robot: Headless and Adorable



LONG BEACH, California — Go into the typical American home and you’ll find a television, a computer, perhaps a videogame console, and even an iPad. But you won’t find a robot. What’s wrong with us?


We haven’t found the right robot. Or at least that’s Keller Rinaudo’s take on the problem, presented at the TED conference Tuesday along with his creation: A $150 robot named Romo, which can stream video, wheel around in response to remote control, and be custom programmed.

Except that Romo isn’t so much a robot as an iPhone accessory, a base with tracked a wheels for movement. You plug your Apple smartphone into Romo’s movable hinge, and the iPhone forms Romo’s face, as well as its brain, eyes, ears, and means of remote control and communication.


“By leveraging the power of the iPhone’s processor we can create a robot that is Wi-Fi enabled and computer-vision capable for $150, which is about 1 percent of what these kinds of robots would cost in the past,” Rinaudo told the audience at TED.


This makes Romo just one of the most ambitious members of an entire generation of cheap, rapidly developed hardware devices that owe their existence to smartphones and their ability to leverage the processors, screens, and sensors that come along with those devices.


To the Romo, the iPhone supplies a camera with which to detect your face; a display to show Romo’s eyes, which follow the user; and a Wi-Fi connection, which is used to beam video to a different Apple device, which can be used to drive the Romo around. The iPhone’s processor, meanwhile, is used to evaluate command logic that can be set up by the user ahead of time using a simplified, drag-and-drop programming interface.


Rinaudo keeps coming back to the lively animated face, complete with a goofy smile, which he hopes will help Romo sell when it comes on the market this June.


“It has to be something people want to take home and have around their kids,” Rinaudo says. “It should be friendly and it should be cute.”


That cuteness will be enough to get the Romo in the door, but whether it appeals to the common man or woman will have more to do with its functionality. Maybe future versions can be adorable while also being able to fetch drinks from the fridge.



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New Attention to First Lady


CLINTON, Miss. — To her admirers, Michelle Obama is the patron saint of quinoa, charged with reducing the nation’s dangerous obesity rate and helping children eat better. To her detractors, she is the fun-killer, possessed with crushing America’s cookies.


But either way Mrs. Obama has taken her message once again on the road and is making clear that her campaign for healthy school lunches and fewer fat children will not be deterred.


“Now is truly the time to double down on our efforts,” she told state officials on Wednesday at an elementary school here, where she also entertained a giant group of students with a cooking contest in the cafeteria between school chefs and the celebrity food personality Rachael Ray.


Signaling that her “Let’s Move” campaign, now in its third year, will remain a central part of her own policy agenda, Mrs. Obama began a three-city tour to promote new federal school lunch policies, beginning here in Mississippi, where childhood obesity rates have fallen even as the overall rate remains the highest in the nation. “I am beyond thrilled to be back here in Mississippi,” Mrs. Obama said as lawmakers rose with their smartphones to snap photographs of her.


In 2011, the Centers for Disease Control and Prevention said that nearly 40 percent of Mississippi residents were obese. But in 2007, with the blessing of Gov. Haley Barbour, the state began to attack the problem with legislation intended to reduce fat in school lunches and to increase exercise programs.


From 2005 to 2011, obesity declined 13.3 percent among elementary school children in the state, according to the Robert Wood Johnson Foundation. Similar new federal standards for school lunches were set by the Healthy Hunger-Free Kids Act, which began in the current school year. Promoting that federal legislation, which has been relatively hard fought, is a centerpiece of Mrs. Obama’s campaign.


“Your schools did hard work, replaced their fryers with steamers, hallelujah, and started serving more fruits and vegetables and whole grains,” Mrs. Obama said. She added, “The results of these efforts speak for themselves.”


Ms. Ray, who has worked in the White House garden and championed the healthy eating of Mrs. Obama’s campaign, said that her interest in healthy food in schools stemmed from the notion that “every American needs to be concerned about the health of our nation’s kids.” The visit to the school here will be featured on her television program.


After meeting with adults, Mrs. Obama repaired to the school cafeteria for the school chef cook-off contest, where scores of children in red shirts, which matched the bowls of apples on the tables, waited for her arrival by talking, squirming and struggling to contain their excitement.


Mrs. Obama has attracted the praise of obesity experts, chefs, nutritionists and others who applaud her White House garden, her school lunch efforts and her focus on exercise, recently demonstrated in an appearance on NBC’s “Late Night With Jimmy Fallon” doing the “mom dance.” She has also found herself in the cross hairs of conservatives and other critics who see her efforts as meddlesome, frivolous or undignified.


Recently, Mrs. Obama has come under increased scrutiny after flying largely under the radar since the end of the 2012 presidential campaign. On Sunday, she announced the winner of the best picture award at the Oscars via satellite from the White House, which caused a minor national kerfuffle as some pondered the propriety of her appearance.


In The Washington Post on Wednesday, the columnist Courtland Milloy went on a full-frontal attack of both the first lady’s agenda and the attention to her appearance, which he implied she had invited. “Enough with the broccoli and Brussels sprouts,” he wrote, “to say nothing about all the attention paid to her arms, hair, derrière and designer clothes. Where is that intellectually gifted Princeton graduate, the Harvard-educated lawyer and mentor to the man who would become the first African-American president of the United States?”


Her dancing with middle school students, doing push-ups on “The Ellen DeGeneres Show,” running out for tapas with her girlfriends and clipping her locks into modern bangs both thrill and deeply annoy a nation that projects much onto its first ladies.


She will continue her tour on Thursday in Chicago, where she will announce a physical fitness initiative in schools with the tennis player Serena Williams and Education Secretary Arne Duncan. From there, Mrs. Obama will continue on to Missouri to promote adjustments in the food offerings at Walmart and discuss changes to other food businesses. She is traveling with Sam Kass, the senior policy adviser for her White House healthy food initiative.


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DealBook: Heinz Case May Involve a Side Bet in London

Regulators have escalated an investigation into suspicious trades placed ahead of the $23 billion takeover of H. J. Heinz, focusing on a complex derivatives bet routed through London, according to two people briefed on the matter.

The development builds on a recent regulatory action on a Goldman Sachs account in Switzerland that bought Heinz options contracts. It also comes a week after the Federal Bureau of Investigation said it opened a criminal inquiry.

An unusual spike in trading volume in Heinz options a day before the deal was announced first attracted the scrutiny of investigators. The Securities and Exchange Commission is also examining fluctuations in ordinary stock trades. The Financial Industry Regulatory Authority, Wall Street’s self-regulatory group, recently referred suspicious stock trades to the S.E.C., a person who was briefed on the matter said.

Now the S.E.C. is looking into a more opaque corner of the investing world, examining a product known as a contract-for-difference, a derivative that allows investors to bet on changes in the price of stocks without owning the shares. Such contracts are not regulated in the United States, but are popular in Britain.

The expansion of the Heinz investigation illustrates the growing challenges facing American regulators. Charged with policing the American exchanges, authorities increasingly find themselves having to hunt through a dizzyingly complex global marketplace.

Following a number of prominent crackdowns on insider stock trading, a campaign that scared the markets, investors are seeking subtler and more sophisticated tools to seize on confidential tidbits. Trading operations also flocked overseas, a careful move that forces the S.E.C. to navigate a maze of international regulations before identifying suspect traders.

The Heinz case illustrates the shift, as the S.E.C. relies on Swiss authorities to expose the trader behind the Heinz options bets.

The suspicious options trades were routed through a Goldman Sachs account in Zurich, where laws prevent the firm from sharing details of the account holder’s identity. In a complaint filed two weeks ago, the S.E.C. froze the account of “one or more unknown traders.” A federal judge upheld that freeze last week, a move that will prevent the traders from spending their winnings or moving the money.

The series of well-timed options trades, bets that produced $1.7 million in profits, came just a day before Berkshire Hathaway and the investment firm 3G Capital announced that they had agreed to buy the ketchup maker. News of the deal sent the company’s shares, and the value of the options contracts, soaring.

The S.E.C. called the trading “highly suspicious,” given that there was scant options trading in Heinz in previous months.

“Irregular and highly suspicious options trading immediately in front of a merger or acquisition announcement is a serious red flag,” Daniel M. Hawke, head of the commission’s market abuse unit, said recently.

While the identity remains a secret, the account holder is a Goldman private wealth management client, according to a person briefed on the matter who was not authorized to speak on the record. Goldman executives in Zurich know the identity of the person, but laws prohibit those executives from sharing the name with American regulators and even Goldman executives outside of Switzerland.

Finma, the Swiss regulator, is the gatekeeper for American regulators. The S.E.C. contacted Finma in an effort to learn more about the trading, and the Swiss regulator has promised to help. It could take weeks to identify the traders.

Goldman has hired outside counsel to advise it on the situation, according to people briefed on the situation who were not authorized to speak on the record. The bank, which is not accused of wrongdoing, is cooperating with the investigation.

An S.E.C. spokesman declined to comment.

The agency’s inquiry may cast a cloud over the Heinz deal. After the traders are identified, the focus will turn to the many insiders who had information on the deal and could have leaked details. Dozens of people had confidential information about the deal, including bankers, lawyers and executives for both the buyers and the seller.

As the agency continues to build its case against the options trades, it also is examining suspicious contracts-for-difference.

Investors increasingly favor the contracts because they require little capital investment and can be traded on margin. They are popular on the London Stock Exchange, where regulators are now focusing some attention.

In essence, the derivatives contracts are a side bet on the price of a stock. They have drawn criticism for being opaque, in part because users are not actually trading the shares of a company, but rather a contract linked to those shares.

Regulators have examined the use of the contracts before when accusations of insider trading have arisen. In 2008, the British Financial Services Authority fined an investor for market abuse, saying the investor had used a contract-for-difference to profit from inside information on the Body Shop, a retailer. The person was making a bet in this case that the shares would fall in value.

Despite the focus on such complex products in the Heinz case, the S.E.C. is also examining more mundane activity in equity trades ahead of the deal.

Finra is helping the agency build its investigation. The group created an Office of Fraud Detection and Market Intelligence as a sort of clearinghouse of information.

A Finra official declined to comment on Wednesday.

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Tribune Co. hires advisors to explore sale of newspaper unit









Tribune Co. has hired investment bankers to advise the media company on the potential sale of its newspaper publishing unit.


The company announced that it has retained JPMorgan Chase & Co. and Evercore Partners to assess whether to sell the division that includes the Los Angeles Times, Chicago Tribune and six other daily newspapers.


The bankers will analyze bids from suitors, but their hiring does not necessarily mean that the assets would be sold.





"There is a lot of interest in our newspapers, which we haven't solicited," Gary Weitman, a Tribune spokesman, said in a statement. "Hiring outside financial advisors will help us determine whether that interest is credible, allow us to consider all of our options, and fulfill our fiduciary responsibility to our shareholders and employees."


Tribune hopes to sell the newspaper group intact instead of selling each paper individually, according to a person familiar with the matter.


The Chicago company has a healthy balance sheet and doesn't feel financial pressure to sell the properties, according to the person. It's unclear how long the process could take.


There has been widespread speculation that Tribune would attempt to unload the newspaper business to focus on its more promising television operations. Rupert Murdoch's News Corp. is among the possible bidders for the newspaper assets.


Tribune emerged from its four-year bankruptcy at the end of 2012 and appointed broadcasting veteran Peter Liguori as chief executive in January.


JPMorgan Chase holds an ownership stake in Tribune.


Evercore Partners, a boutique investment bank, also is working for the parent company of the New York Times on its planned divestiture of the Boston Globe.


walter.hamilton@latimes.com


andrew.tangel@latimes.com





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Cablevision Sues Viacom Over Bundled Channels



You pay too much for pay TV because your cable company is forced to purchase channels in bundles from media companies like Viacom — if it wants to offer MTV, it has to pay for CMT Pure Country and Teen Nick as well. Now one cable provider has had enough, and is suing for the right to purchase channels à la carte.


Cablevision, a New York-based cable TV provider, filed an antitrust lawsuit against Viacom on Tuesday in federal court hoping to stop the media conglomerate from forcing Cablevision to pay for channels its customers don’t watch. In order to secure rights to broadcast Nickelodeon, Comedy Central, and MTV, the company states that Viacom has unfairly bundled less-popular ancillary channels.


The pay-TV provider names 14 channels that it says Viacom coerced it into including in its lineup by threatening massive financial penalties. By forcing the company to buy all the channels, Cablevision says Viacom is unlawfully “block booking” — a form of tying that conditions of the sale of a package of rights on the purchaser’s taking of other rights.


The actual lawsuit isn’t available yet, but Cablevision released the following statement:


“The manner in which Viacom sells its programming is illegal, anti-consumer, and wrong. Viacom effectively forces Cablevision’s customers to pay for and receive little-watched channels in order to get the channels they actually want. Viacom’s abuse of its market power is not only illegal, but also prevents Cablevision from delivering the programming that its customers want and that competes with Viacom’s less popular channels.”


Viacom isn’t the only media company that forces pay-TV providers to purchase bundles of channels in order to secure high-value offerings. Disney’s ESPN network comes with a slew of ESPN channels that providers need to purchase.


The 14 channels Cablevision feels it shouldn’t have to carry are: Centric
, CMT,
 MTV Hits,
 MTV Tr3s,
 Nick Jr., 
Nicktoons, 
Palladia, 
Teen Nick, 
VH1 Classic, 
VH1 Soul, 
Logo, 
CMT Pure Country, 
Nick 2, and 
MTV Jams.


Cablevision is seeking a permanent injunction against Viacom making the licensing of ancillary channels part of the deal when licensing the channels people actually watch.


Viacom has responded to the legal action by Cablevision with the following statement:


“At the request of distributors, Viacom and other programmers have long offered discounts to those who agree to provide additional network distribution. Many distributors take advantage of these win-win and pro-consumer arrangements. Reflecting the highly competitive cable programming business, these arrangements have been upheld by a number of federal courts and on appeal. Viacom will vigorously defend this transparent attempt by Cablevision to use the courts to renegotiate our existing two month old agreement.”


This isn’t the first time bundled channels have been dragged into the courts. A group of pay-TV subscribers filed a class-action suit against programmers alleging that consumers were forced to accept bundled packages of channels. The suit was thrown out because the plaintiffs had failed to allege cognizable injury to competition.


If Cablevision’s lawsuit succeeds, it may be the end of unwatched channels filling your subscription lineup and could potentially lower your pay-TV bill. It’ll also be bad news for fans of Centric. Whatever that is.


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