Does the new Time Warner Cable iPad app run afoul of the cable company's licensing deals with content providers?
Companies like Viacom and Discovery Communications believe they should be paid more for the right to stream their channels to devices like the iPad, according to the New York Post.
"Our agreement doesn't cover tablet distribution," a cable-programming executive told the Post. "There are a lot of phone calls right now."
Viacom declined to comment and Discovery did not immediately respond to a request for comment. A person familiar with the matter, however, said the Post story was accurate.
"We believe we have the rights to do what we are doing with the iPad app," a Time Warner spokesman said.
Time Warner released its iPad app on Tuesday. It effectively turns the tablet into a cable box, allowing subscribers to view 32 live TV channels via the iPad. To access it, you must be a Time Warner Cable customer with a basic cable package and access a Wi-Fi network powered by Time Warner Cable.
Customers were apparently eager to try out the service. On Tuesday night, Time Warner tweeted that "Demand for our iPad app has been HUGE - most downloaded on iTunes today. We're adjusting to high load/volume and apologize for any problems."
That adjustment apparently involved temporarily removing 17 channels from the app's lineup, but Time Warner said the app was back in working order by Wednesday afternoon.
If the content providers get involved, however, it could get ugly. Recently, cable companies and content providers have gotten into very public spats over their licensing deals, with content providers sometimes pulling their channels from cable providers's lineups in protest.
Time Warner and Viacom actually have a history when it comes to licensing disputes. A December 2008 battle over licensing fees almost resulted in Viacom pulling channels like MTV, VH1, and Nickelodeon from the TWC lineup at the stroke of midnight on New Year's Eve, but the two sides reached a deal several days later.
The provider had a similar battle with Fox last year, but a deal was also reached before channels were pulled from the air.
More recently, News Corp. yanked its Fox broadcast programming from Cablevision in October after the two companies failed to reach an agreement over licensing fees. Fox was dark on Cablevision for about two weeks, until Cablevision reluctantly accepted a deal from Fox.
The battles over licensing fees - known in DC speak as retransmission consent - has caught the attention of lawmakers and federal agencies. In December, the FCC announced that it will investigate whether it can broaden its authority regarding cable-content battles without involving itself too much in private negotiations.
For more, see PCMag's hands on with the TWC iPad app and the slideshow below.