CBS’s Les Moonves has responded to Time Warner Cable’s ridiculous suggestion that the TV network split up its deal and take an ‘a la carte’ offer. CBS, Showtime and all the Viacom networks are still off the “air” thanks to Time Warner Cable’s greediness. Am I biased? Oh yes. TWC is not the company it was when it was actually owned by Time Warner. Monnves calls CEO Glenn Britt’s offer “a well wrought distraction” and “grandstanding.” I agree. TWC had better get CBS et al back on its cable systems tout suite. They don’t realize there are other places viewers can go for the shows they’re missing.

Here’s Les Moonves’s letter to Britt this morning:

August 6, 2013
Glenn Britt
Chairman and Chief Executive Officer
Time Warner Cable
60 Columbus Circle, 17th Floor
New York, NY 10023
Dear Glenn:
I was surprised to get your letter yesterday, particularly since I hadn’t spoken to you in more than a week. Come to think of it, you haven‟t reached out to me personally, as I have to you on more than one occasion, even once during this entire matter, so your communication was both unexpected and welcome. The fact that you released it simultaneously to the media, however, dampened my enthusiasm somewhat. It made me suspect that the document was not, as I hoped, a sincere offer but rather a public relations gesture of some kind. Sadly, my suspicions were more than justified. I was also surprised and disappointed when your incoming CEO, when asked by CNBC whether we had responded to your lengthy letter, said, “I am not aware of CBS having made a counterproposal or responded to our proposal in any way.” I found this rather dishonest. After all, we had received your communication along with the press not five minutes before airtime, as he surely must have known.
Nevertheless, I welcome this opportunity to respond to your “offer,” and to run down some other specious arguments you have made that require clarification and correction.
First, after reviewing your letter, we have concluded that there is not a sincere or helpful proposal in it. It is, rather, a well-wrought distraction. Let me remind you, Glenn, that you have in your possession more than 100 pages of our actual proposal, with economics, terms and rights agreements contained for CBS, Showtime and all the content vehicles under discussion. You had them well before you dropped our programming from your service. We have never received a mark-up or reply to anything contained in them. Last Friday, in spite of the fact that we had offered a one-week extension to remain on the air while we continued our discussions, you chose to take us off the air. Why? Because, as your new CEO stated, Time Warner Cable would “have more leverage” with CBS off the air and
our viewers deprived of our programming. Since that night, Friday at 5:00 PM, we have not heard from anybody at Time Warner Cable to discuss anything at all, in spite of your public statements to the contrary. Until, of course, your public letter masquerading as a private one.
That‟s not negotiating. That‟s grandstanding.
As to your groundbreaking “offer” to go a la carte: Anyone familiar with the entertainment business knows that this is an empty gesture. The economics and structure of the cable industry have created a certain way that content is distributed and compensated. We both know that a true a la carte universe is not one that Time Warner Cable welcomes.
In fact, if you thought it was a good idea, why aren‟t you offering your new, multi-billion-dollar Lakers and Dodgers channels to your subscribers in Los Angeles on an a la carte basis? Instead, your subscribers in Los Angeles are already being charged in the neighborhood of $4.00 for the Lakers and likely more than that for the Dodgers – both of which you have pulled off broadcast television entirely. These charges are added to the cost of your customers‟ basic monthly bill whether they want them or not. At the same time, you find it impossible to pay far, far less than that for the network that brings your viewers the NFL, the PGA Championship, the Masters, the NCAA Basketball tournament, SEC Football, plus 60 Minutes, NCIS, The Big Bang Theory, Under the Dome, David Letterman, the Grammys, and so much more.
We view your so-called proposal, then, as nothing more than an attempt to muddy the water and confuse the public discussion.
Are you really so reluctant to come to the same kind of agreement that we have struck – without incident – with every other cable operator, telco and satellite provider? You already pay ten networks on your channel lineup more than you compensate CBS, all of which have far fewer viewers. What we are looking for, have always been looking for, is fair compensation for our content. CBS is the most popular programmer in the world. Showtime has content that is the most sought-after in the business. Why can‟t you see your way clear to honestly paying for what your customers value most?
Perhaps the most egregious portion of your letter was at the very top, where you “agree to resume carriage with the „new economics‟” while “employing all the other terms and conditions of our recently expired contracts.” On the surface of it, that looks reasonable. But it‟s not. Clever PR, perhaps, but not genuine negotiation. As I am sure you know, we have no “new economics” that are not intimately tied to new “terms and conditions.” Those terms and conditions, better known as rights, were established in 2008. That was before the introduction of the iPad. Netflix was still doing little but mailing out DVDs. Amazon was known simply for selling books. This doesn‟t even begin to account for the new entrants
now coming up the ramp who are interested in paying a fair price for the most desirable programming. What you are asking for, pure and simple, is either to gain the right to deliver content for free that others are paying for,or to inhibit CBS from licensing content to existing online competitors and new companies that are now emerging. I can understand why you might want to preserve your dominance in that venue, but bullying us into becoming your accomplice in that effort doesn‟t seem fair. Again, what we are seeking with you is nothing more – or less – than a rights and conditions package that every other cable, satellite and telephone company has agreed to.
Rather than engaging in public posturing that achieves nothing but confusion and doesn‟t move us one bit closer to our mutual goal, please return to the negotiating table and talk about the real issues that separate us. We will be there waiting and hopeful.
Sincerely,
Leslie Moonves

Prince– the artist known as– is coming to NYC in like two weeks. Are you ready? He’s booked six shows at the smallish, very cool City Winery for his NPG horns and artists Shelby J. and Liv Warfield. Who? Right. But you know Prince played City Winery in Chicago last month. This is a coup for Michael Dorf, who’s even staged Prince tribute shows in the past. I’m told His Highness will play at least one show, but my guess is he’ll be at most of them. And you know, from past experience we know that Prince Rogers Nelson likes the post- midnight hours. So those midnight shows from August 20-25th will be in high demand. The summer has just taken a very positive turn! www.citywinery.com

The new world is here. Amazon founder Jeff Bezos, 49, has bought The Washington Post for $250 million. A man with no background in journalism but who has made a fortune reinventing the world via the internet, now owns one of the three or four most important newspapers in the world. He bought it from the Graham family, ending four decades of a dynasty that culminated in the 1970s with publisher Katherine Graham and the Watergate era. The press release says Bezos bought the paper on his own, that it’s not amazon.com buying it.

Graham’s granddaughter, Katherine Weymouth, will continue as CEO and Publisher. Weymouth is also related to rock royalty: her aunt is Tina Weymouth of the Talking Heads.

There are of course a lot of coincidences here. Newsweek was just sold again, this to the International Business Times, a business website. The Washington Post company owned Newsweek for a long time before it was sold to Sidney Harman and then the Daily Beast. Now there is no print magazine and a shell of a website.

And over the weekend The Boston Globe was sold to the owners of the Boston Red Sox by the New York Times Company after a twenty year partnership.

Print media is just holding on, and the only ones to save it really are web people with money and a fondness for the physical paper. To look at the very thin New York Post and Daily News, it’s surprising they are even still in business. If Bezos can apply his innovative sensibilities to the Post, then the future looks bright.

here’s the full press release:
The Washington Post Company (NYSE: WPO) announced today that it has signed a contract to sell its newspaper publishing businesses, including The Washington Post newspaper, to Jeffrey P. Bezos.

The purchaser is an entity that belongs to Mr. Bezos in his individual capacity and is not Amazon.com, Inc.

“Everyone at the Post Company and everyone in our family has always been proud of The Washington Post — of the newspaper we publish and of the people who write and produce it,” said Donald E. Graham, Chairman and CEO of The Washington Post Company.  “I, along with Katharine Weymouth and our board of directors, decided to sell only after years of familiar newspaper-industry challenges made us wonder if there might be another owner who would be better for the Post (after a transaction that would be in the best interest of our shareholders). Jeff Bezos’ proven technology and business genius, his long-term approach and his personal decency make him a uniquely good new owner for the Post.”

“I understand the critical role the Post plays in Washington, DC and our nation, and the Post’s values will not change,” said Mr. Bezos.  “Our duty to readers will continue to be the heart of the Post, and I am very optimistic about the future.”

Mr. Bezos has asked Katharine Weymouth, CEO and Publisher of The Washington Post; Stephen P. Hills, President and General Manager; Martin Baron, Executive Editor; and Fred Hiatt, Editor of the Editorial Page to continue in those roles.

“With Mr. Bezos as our owner, this is the beginning of an exciting new era,” said Ms. Weymouth.  “I am honored to continue as CEO and Publisher.  I have asked the entire senior management team at all of the businesses being sold to continue in their roles as well.”

The transaction covers The Washington Post and other publishing businesses, including the Express newspaper, The Gazette Newspapers, Southern Maryland Newspapers, Fairfax County Times, El Tiempo Latino and Greater Washington Publishing.

Slate magazine, TheRoot.com and Foreign Policy are not part of the transaction and will remain with The Washington Post Company, as will the WaPo Labs and SocialCode businesses, the Company’s interest in Classified Ventures and certain real estate assets, including the headquarters building in downtown Washington, DC.  The Washington Post Company, which also owns Kaplan, Post–Newsweek Stations and Cable ONE, will be changing its name in connection with the transaction; no new name has yet been announced.

The purchase price is $250 million, subject to normal working capital adjustments, payable at closing later this year.

Allen & Co. assisted the Post Company in the sale process.

There’s an extraordinary interview in Parade magazine today and at www.parade.com. It’s the cover story Q&A with Oprah Winfrey, Forest Whitaker, and Lee Daniels about the release of “The Butler.” My friend Kathy Heintzelman sat with this trio at the Waldorf Astoria and came away with more revealing information about Oprah than almost any one I can think of to date.

For one thing, Oprah says she has a mountain in Maui. And that’s just the beginning. Winfrey reports that she objects totally to use of the “n” word and that she and Jay Z–who peppers his raps with it– have decided they must disagree on this subject.

“You can’t be my friend and use that word around me,” she says. This, I think, is so important and brilliant.

Oprah also talks with great reverence for her father (who I thought she didn’t care for at all). Oprah also says she’s insecure about her acting abilities, and is blown away by Forest Whitaker in the film.

And most interesting: as we approach the 50th anniversary of Dr. Martin Luther King’s march on Washington, Winfrey says that King’s dream is still unfulfilled. And she says she would not have had the courage to be a Freedom Rider. She says: “I feel blessed that they went before me.”

You must read this piece, and then see Lee Daniels’ “The Butler” and “Fruitvale Station,” the two most important movies of the year. And Bravo to Parade for being first, and making sure their 30 million readers are exposed to this information!