Just two weeks after posting its live cable television iPad app, cable operator Time Warner has pulled channels following complaints from Rupert Murdoch’s News Corp., Viacom and Discovery Communications. Big media clearly has issues with the free TWCable TV app, downloaded 300,000 times so far, which lets iPad owners stream 32 selected cable channels to their device in high definition. Even though the software requires a subscription to Time Warner’s pay-TV, content partners argue that the streaming rights are not part of the programming deal.

Bloomberg yesterday reported that Fox Networks Group issued a cease-and-desist letter in an effort to stop unauthorized use of News Corp.’s content, leading to a possible lawsuit. Outdated contracts don’t cover content streaming to tablets like iPad, an entertainment attorney tells the publication. The New York Times chimed in today with information that Viacom and Discover Communications also filed similar complaints. Read on…

Time Warner’s pay-TV subscribers found out today that a number of channels are no longer available for streaming. The app continuous to work with a reduced selection while the company works around the clock to provide replacement channels “as quickly as we can”. MTV and FX are both MIA.

It all comes down to the money and opposing sides have interesting arguments to make their case. Time Warner is adamant in a blog post the programming rights include their iPad app because viewers already pay for the right to view this content in their home:

The company also issued this statement on a dedicated website I Want My TWCable TV App:

Content owners, of course, are diametrically opposed, explains the paper: