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Time Warner Cable and CBS reach deal to restore network to 3m US homes Time Warner Cable and CBS reach deal to restore network to 3m US homes
(14 days later)
A month-long standoff between Time Warner Cable and CBS that prevented millions of viewers from watching the top-rated network in the US ended when the two sides resolved their dispute.A month-long standoff between Time Warner Cable and CBS that prevented millions of viewers from watching the top-rated network in the US ended when the two sides resolved their dispute.
The deal covers more than 3m homes in New York, Dallas and Los Angeles that had not been able to receive programming from CBS or CBS-owned channels since 2 August. Broadcasting resumed Monday evening on the east coast.The deal covers more than 3m homes in New York, Dallas and Los Angeles that had not been able to receive programming from CBS or CBS-owned channels since 2 August. Broadcasting resumed Monday evening on the east coast.
The companies had been fighting over how much TWC would pay for programming on CBS and other channels, including Showtime Networks, CBS Sports Network and the Smithsonian channel. Terms of the deal were not immediately disclosed.The companies had been fighting over how much TWC would pay for programming on CBS and other channels, including Showtime Networks, CBS Sports Network and the Smithsonian channel. Terms of the deal were not immediately disclosed.
The agreement includes retransmission fees the cable operator pays to CBS per subscriber, which had been a sticking point.The agreement includes retransmission fees the cable operator pays to CBS per subscriber, which had been a sticking point.
The disagreement came at a touchy time for networks and cable companies as more and more Americans are turning to alternative ways to watch TV, including online or on internet-connected TVs. Added pressure was on the two companies to reach an agreement with CBS holding deals to broadcast NFL and Southeastern Conference football, as well as the start of the US Open tennis.The disagreement came at a touchy time for networks and cable companies as more and more Americans are turning to alternative ways to watch TV, including online or on internet-connected TVs. Added pressure was on the two companies to reach an agreement with CBS holding deals to broadcast NFL and Southeastern Conference football, as well as the start of the US Open tennis.
The blackout affected about 1.1m of New York's 7.4m television households that get CBS. An estimated 1.3m of 5.6m households in Los Angeles were blacked out, along with 400,000 of Dallas' 2.6m TV homes, CBS said. Those are three of the nation's five most populous television markets.The blackout affected about 1.1m of New York's 7.4m television households that get CBS. An estimated 1.3m of 5.6m households in Los Angeles were blacked out, along with 400,000 of Dallas' 2.6m TV homes, CBS said. Those are three of the nation's five most populous television markets.
CBS estimated the blackout cut the network's national viewership by about 1%.CBS estimated the blackout cut the network's national viewership by about 1%.
The talks were being closely watched beyond these companies and their customers because of the idea that a retransmission agreement would set a precedent for future negotiations between networks and cable or satellite companies. Another point of contention was the cable operator's access to CBS material for on-demand or mobile device viewing.The talks were being closely watched beyond these companies and their customers because of the idea that a retransmission agreement would set a precedent for future negotiations between networks and cable or satellite companies. Another point of contention was the cable operator's access to CBS material for on-demand or mobile device viewing.
"While we certainly didn't get everything we wanted, ultimately we ended up in a much better place than when we started," TWC chief executive Glenn Britt said in a statement."While we certainly didn't get everything we wanted, ultimately we ended up in a much better place than when we started," TWC chief executive Glenn Britt said in a statement.
Mignon L Clyburn, acting chairwoman of the Federal Communications Commission, issued a statement saying she was "pleased CBS and Time Warner Cable have resolved their retransmission consent negotiations, which for too long have deprived millions of consumers of access to CBS programming".Mignon L Clyburn, acting chairwoman of the Federal Communications Commission, issued a statement saying she was "pleased CBS and Time Warner Cable have resolved their retransmission consent negotiations, which for too long have deprived millions of consumers of access to CBS programming".
In the end, she added, media companies should "accept shared responsibility" for putting their audiences' interests above other interests.In the end, she added, media companies should "accept shared responsibility" for putting their audiences' interests above other interests.
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