That’s my translation of comments from Turner Broadcasting’s Phil Kent today. The head of Time Warner’s cable network told the crowd at a Citigroup investment conference that his company had pulled out of bidding for reruns of “Modern Family” because the show was “a little too prevalent on the Internet.”

The sitcom runs on both ABC.com and Hulu, so I’m not clear if Kent was talking about one or the other, or both. Either way, those comments have to simultaneously please and dismay “Modern Family” creator Steve Levitan, who has complained that giving away streams of his show on Hulu doesn’t do him any good and probably does him harm.

Levitan isn’t the only one who thinks that way: There are plenty of TV people who worry that free streaming on the Web is hurting their business, either by sapping ratings or cutting down on the appetite for DVDs and syndication. In this case, the supposed value shrinkage hurts News Corp., which produces the show and owns the rerun rights, more than it does Disney’s ABC, which airs the initial run. (News Corp. also owns this Web site.)

That’s one of the fundamental tensions Hulu has to deal with, and the primary reason why taking the joint venture public remains such a long shot–until all of its owner/partners are willing to make long-term programming commitments to the site, it’s hard to see the long-term value in the company.

Still, it’s important to note that Kent didn’t abstain from bidding–he simply dropped out. The Los Angeles Times’ plugged-in Joe Flint estimates that Turner was willing to pay about $1 million per episode, which isn’t as much as the winning $1.4 million bid, but isn’t immaterial, either.

Oh. And the winner of the bid? GE’s NBC Universal–one of Hulu’s three owner/partners.

Next up: The Disney (DIS) unit will be doing the same thing with the shows it runs on its ABC.com site, VideoNuze reports.

If this sounds like a rerun, there’s a good reason. Disney has been talking about bumping up its online ad load for two years. The fact that the company is just getting around to it now tells you quite a bit about the state of Web video advertising and the caution media buyers have about deviating from any norm, no matter how recently established.

In this case, the conventional wisdom is that Web viewers won’t tolerate more than a light dusting of video ads. Right now, most ABC.com shows feature about 2.5 minutes of ads, compared with the 20 minutes the network stuffs into a typical one-hour broadcast show.

To get a sense of how much money ABC has left on the table, consider: The network says iPad owners have downloaded the app from Apple’s (AAPL) iTunes store 800,000 times since the April 3 launch and have watched 4.2 million episodes.

If you’re tech-savvy enough to be watching shows online, though, you’re probably also familiar with a DVR, which means you instinctively reach for the fast-forward button every time you see a spot. And you can’t do that online.

But if ABC pulls this off, you’ll likely see its peers follow suit. Note, by the way, that Google’s (GOOG) YouTube has been steadily bumping the ad load on its clips.

That’s a bummer if you like to pretend you live in an ad-free Web nirvana. But if you live in the real world, this isn’t terrible news: More online ads make free Web programming that much more valuable to the networks, which makes them that much more likely to keep putting it out there–and keep it in front of pay walls.

The characters change, but the script is always the same. A programmer wants more money from a cable provider and threatens to pull its shows. See: Viacom (VIA) versus Time Warner Cable (TWC), News Corp. (NWS) versus Time Warner Cable, Cablevision versus Scripps Networks (SNI), Etc. Etc.

Spoiler Alert! The conclusion is always the same too: Both sides compromise, and cable subscribers get to watch their shows–in exchange for paying ever-increasing fees.

My interest here is whether either side wants to use the Web as a weapon in the fight given that the Internet is an increasingly plausible alternative for TV watchers who don’t want to pay for cable. Last year, for instance, Time Warner Cable showed its customers how to get Fox shows–and everything else–onto their TVs via the Internet (you can still see those instructions here).

The problem, of course, is that by highlighting the Web option, both sides run the risk of undermining their market power in the long run. If couch potatoes really do get used to the idea of consuming their shows using their PCs, it makes it easier for them to tell both programmers and the cable guys to pound sand.

For now, though, both sides are leaving the Web alone while they rattle their swords.

Disney (DIS) reminds Cablevision’s three million New York-area viewers that they’ll still be able to get ABC shows via an old-fashioned TV antenna. But the network doesn’t mention ABC.com or Hulu, its joint venture with Fox and GE’s (GE) NBC. And Cablevision (CVC), at least so far, hasn’t brought up the Web either.

Both sides are clearly betting this gets resolved before Sunday night when ABC is set to broadcast the Oscars–not coincidentally, one of the only programs you really have to watch live.

Here’s Disney’s opening salvo:

[Image credit: Alexindigo]

Hi there! Salivating for tonight’s show? Me too.

But I have a request. Please hear me out.

Like you, I’ve invested an embarrassingly substantial number of hours in this thing. And I can’t wait for one last season with Jack, Locke, et al. (Especially Locke. Can’t get enough Locke.)

But unlike some of you, I’m probably not going to be able to watch every show in real-time. Various life requirements are going to force me to watch at least some of these a day or two later on the DVR (or ABC.com or Hulu in a pinch).

Which would be fine, except that I’m also on Twitter a lot, and so are many of you. And many of you want to tweet about the show while it’s running and during its aftermath.

I don’t know why that is. I get the idea of Twittering along with live communal events like “American Idol” or pro football. But you guys realize that “Lost” episodes were taped months ago, right?

Anyway, I’m not here to judge! Just to ask for your help.

My ask: It’d be really great if you folks could lay off the “Lost” tweets until a few days after each show. Because otherwise, I–and, I suspect many other people, as well–will have to make an unpleasant choice: Stop using Twitter for several days a week or wade through lots and lots of spoilers. (This is apparently not a Hobbesian Choice but a Morton’s Fork. Thanks, Wikipedia!)

Yes, I think it’s theoretically possible for me to set up Twitter clients like Tweetdeck to strike some “Lost”-related tweets from my stream. But not all of them.

I also suppose we could also ask Biz Stone and crew to somehow filter out “Lost” tweets from the mainstream, but I think those guys have more important stuff to do. (One other alternative would be to ask all you Twittering real-time “Lost” watchers to head somewhere else for a bit, like Hot Potato, which is supposed to work for just this sort of thing. But I can understand if you’re not up for embracing yet another messaging service.)

So. What do you think ? I’m not asking for much, I think. Just a little near-term restraint. Let’s say two days, max.

That lets the rest of us catch up–remember, East Coasters, that the poor folks on the other side of the country are three hours behind to begin with. And then we can join the rest of you, and we can all discuss this awesome show in 140 or fewer characters.

Thanks in advance for your consideration,

Peter

P.S.: I bet the smoke monster is Jack’s dad. Or something.

After factoring out one-time charges and write-offs, Bob Iger and company earned 43 cents a share on revenue of $8.1 billion. Wall Street had been looking for 40 cents and $8.15 billion, respectively.

Iger: “We had a difficult second quarter due to the weak economy and other factors.”

The bright spot for the entertainment conglomerate is the same one you see at every media giant these days: Disney’s cable business. Revenue at ESPN and the Disney Channel was up four percent and operating income was up five percent. That’s because those powerhouse channels have locked in payments from cable operators that show up regardless of the economy’s state.

And that’s why you won’t see (much) programming from those channels on Hulu–there’s no way Iger is going to rile up the cable operators who pay for that programming by running it for free online.

Disney’s interactive group, which includes videogames and sites like Club Penguin, but not revenue from ABC.com and sales from Apple’s (AAPL) iTunes store, saw revenue decline 17 percent, and operating income drop two percent.

Here’s the breakdown by segment (click to enlarge):

Write-down watch: Disney took $203 million in “impairment charges”–accountant-speak for “the stuff we bought back then isn’t worth much now.” That includes “$108 million related to radio FCC licenses and $46 million related to an investment in an Indian media company.”

This follows on the heels of a lousy February quarter in which the company didn’t hit expectations.

Disney (DIS) is the first of several big media companies to report this week. News Corp. (NWS) weighs in tomorrow, followed by CBS (CBS) on Thursday.

The Disney earnings call is starting now. I’ll listen in and update as warranted.

Disney CFO Tom Staggs on ad market, economy: “While we believe the pace of decline has generally stabilized, we believe ad buyers and consumers remain cautious.”

During Q&A, Iger has a long monologue about online philosophy, Hulu, etc., but my Webcast cut him off before he was finished. Don’t know whether to blame Disney or Time Warner Cable (TWC) for that one….

In any event, here’s my paraphrase of what I could get down, with a smattering of quotes:

“We found that as we move product to the Web…at least [with regard to] piracy that we’re aware of, there’s been a stabilization….We feel that if we don’t put it online…it will be demanded by consumers, and they’ll find ways.”

Research on cannibalization and piracy in general is inconclusive and some research conflicts with other research we’ve seen. “Some of this is instinct, by the way. It’s not all based on research.”

We feel media consumption is moving to the Web and that media consumption may be expanding. We think we’re better being online than not being online. We realize that Web monetization doesn’t exist yet, at least not at TV-like levels, but we believe that eventually it will.

A lot of the consumption that we’re seeing is incremental because it’s a different demographic. The average age of consumers watching ABC.com and itunes is younger than the average age of those watching network TV. The Hulu demographic is generally younger than prime-time network demographics. So we don’t believe it’s cannibalization.

In what is likely to turbocharge its heft in the digital space, according to an internal email sent out by Walt Disney (DIS) CEO Bob Iger, the entertainment company is combining its Disney Interactive Studios and the Walt Disney Internet Group.

The new unit, called Disney Interactive Media Group–will be headed by WDIG’s Steve Wadsworth.

WDIG has a wide range of properties, like Club Penguin and Disney.com. Disney Interactive Studios makes a range of games for Disney brands like “Hannah Montana” and “Wall-E.”

Here’s the memo, with email address removed:

From: Bob Iger
Sent: Wed Jun 04 19:44:22 2008
Subject: Disney Interactive Media Group (DIMG)

Bob