Time Warner Cable, Viacom Cut Deal

By Ryan Nakashima

LOS ANGELES -- Millions of Time Warner Cable(TWC Quote) customers won't lose their access to MTV and 18 other channels after the cable giant reached an agreement early Thursday with media conglomerate Viacom Inc.(VIA Quote)

The two sides, citing disagreement over fee hikes, had threatened a damaging blackout at a minute past midnight Thursday that would have cut off shows such as SpongeBob SquarePants and The Colbert Report to about 15.7 million subscribers.

"We are pleased that our customers will continue to be able to watch the programming they enjoy on MTV Networks," said Glenn Britt, president and CEO of Time Warner Cable. "We are sorry they had to endure a day of public disagreement as we worked through this negotiation."

Terms of the deal were not disclosed. Details must still be finalized over the next few days, the companies said.

Viacom president and CEO Philippe Dauman said the company was happy a deal was struck. Viacom had mounted an advertising onslaught warning customers of the possible blackout, taking out ads in major newspapers and Web sites from The New York Times and TVGuide.com featuring a tearful "Dora the Explorer" crying and clinging to her monkey pal, Boots.

"Why is Dora crying?" the ad read. "Tonight you will lose Nickelodeon and 18 other channels from your TV." It then prompted people to call their cable company to complain.

The dispute would have affected some 13.3 million Time Warner Cable subscribers, mainly in New York state, the Carolinas, Ohio, Southern California and Texas; and 2.4 million customers of Bright House Networks in Michigan, Indiana, California, Alabama and Florida.