Current TV: Cable Survival Test Case?

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SHALINI RAMACHANDRAN And CHRISTOPHER S. STEWART, Wall Street Journal, 4/6/12

Al Gore's Current TV may have not made much of a mark in cable news. But it may yet be a test case for little cable channels fighting to survive.

For the past few months Current TV has been operating under an unusual constraint in the television industry: It has to meet certain minimum audience thresholds every quarter or risk being dropped by one of its main distributors, Time Warner Cable Inc., according to a person familiar with the situation.

The provision highlights the pressure Current is under in the wake of its firing last week of combative TV personality Keith Olbermann, who was brought in last June to elevate Current's profile. On Thursday, Mr. Olbermann filed suit against Current TV in California's Superior Court in Los Angeles for breach of contract, alleging he is owed between $50 million and $70 million. Current said it hasn't seen the suit yet.

Several TV executives said imposing minimum audience thresholds on cable channels was very uncommon. But with cable and satellite operators looking for ways to rein in what they pay to carry TV channels, that may change.

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