Advertisement

Time Warner Cable removes CBS from lineup in 3 cities after fee fight, then reverses decision

July 30, 2013 at 6:10PM

BEVERLY HILLS, Calif. — The fee dispute between Time Warner Cable and CBS Corp. took an odd turn when the cable giant announced it was turning off the broadcaster in three major cities, then quickly reversed the decision.

The two sides negotiated through the day Monday to avoid a programming blackout. Both parties kept extending the deadline before the cable provider appeared to replace regular programming on the network with a company statement for a brief, undetermined amount of time.

Around 9 p.m. Pacific time, Time Warner Cable said about 3 million customers in New York, Los Angeles, and Dallas would lose the network and four CBS cable stations because of "outrageous demands for fees" by CBS.

"We offered to pay reasonable increases, but CBS's demands are out of line and unfair — and they want Time Warner Cable to pay more than others pay for the same programming," Time Warner Cable said in a statement.

CBS countered, saying that it remained firm in getting fair compensation for its programming. It accused Time Warner Cable of having a "short-sighted, anti-consumer strategy."

Not long after the two sides traded barbs, Time Warner Cable said it halted its plans to drop CBS at the broadcaster's request.

Both sides agreed to continue negotiations. Time Warner Cable said it agreed to an extension until Friday at 2 p.m. Pacific time.

Time Warner Cable spokeswoman Maureen Huff said some areas didn't experience a CBS "blackout" and those who did it was "a matter of minutes."

Advertisement
Advertisement

The disagreement centers mainly on how much Time Warner Cable pays for the right to retransmit signals from the CBS-owned stations.

"As we've said, we feel like we should be paid for our programming," CBS chief executive Les Moonves told the Television Critics Association earlier Monday.

Dozens of blackouts have occurred nationwide in fee fights over the years, but many get resolved at the last minute.

Selling retransmission rights has become a big business for broadcasters such as CBS. Research firm SNL Kagan estimates retransmission fees will reach $3 billion industrywide this year and double to $6 billion by 2018.

Time Warner Cable has said it's resisting a fee hike demand by CBS so prices don't go up for customers. CBS said Time Warner Cable isn't agreeing to terms that its competitors have accepted.

about the writer

about the writer

More from Minnesota Star Tribune

See More
In this photo taken Monday, March 6, 2017, in San Francisco, released confidential files by The University of California of a sexual misconduct case, like this one against UC Santa Cruz Latin Studies professor Hector Perla is shown. Perla was accused of raping a student during a wine-tasting outing in June 2015. Some of the files are so heavily redacted that on many pages no words are visible. Perla is one of 113 UC employees found to have violated the system's sexual misconduct policies in rece

We respect the desire of some tipsters to remain anonymous, and have put in place ways to contact reporters and editors to ensure the communication will be private and secure.

Advertisement
Advertisement

To leave a comment, .

Advertisement