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TV programmers will take care not to alienate cable operators—...

TV programmers will take care not to alienate cable operators -- and the fat monthly affiliate fees they pay -- as they race to put more programming online, Fox Interactive Media Vp Jonathan Cody said on a panel about…

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broadband video’s future at UBS’s media conference. “We certainly want to try new things, but we're not looking to completely bypass a 25-year partnership with cable operators just because we think we can,” Cody said: “Those [distributors] that pay us what cable and satellite do -- we're not interested in cutting them out.” That gives cable operators a huge leg up in getting online video deals, UBS analyst Aryeh Bourkoff said: “That puts Comcast at the table to play in that game.” Cable operators want to keep the role of entertainment aggregators as video programming moves online, he said. The Digital Millennium Copyright Act (DMCA) needs updating to foster growth in online video distribution, Bolt Media CEO Aaron Cohen said: “What we have here is a legal system that is not allowing the business models to work as well as we would like them to. The DMCA protects me very well… but the system is very badly broken.” Fixing the DMCA shouldn’t be a priority, Cody said. “We have to be realistic about where we are on the legal front,” he said: “We really need to focus much more on the technology side and the business side. There’s no reason for us not to be able to sit at tables and figure out our business and technology solutions.” Fox wants better technology to use in identifying and protecting its content on others’ websites, Cody said. Beyond that, business relationships with online distributors are needed to fill demand for Fox content on multiple platforms, he said: “When you see companies build a business on the back of your content… We clearly come at the problem a little bit with a raised eyebrow.” Advertisers are wary of placing video ads on sites with copyright infringing content, said Mark Karlan, a senior media planner for Tangible Media, a company that buys online video ads for marketers. Advertisers are “very hesitant to buy against sites and places where questionable copyrighted material may or may not be present,” he said.