CBS, Time Warner Cable at Odds Over Retrans Fees

NEW YORK: Time Warner Cable subscribers in certain key markets across the U.S. could lose access to CBS this month if the two companies are unable to come to terms on a new retransmission agreement.

The companies have taken their feud public after talks reportedly broke down yesterday. The previous retransmission consent agreement expired at the end of June but was apparently extended to July 24. If a deal is not reached, Time Warner Cable would lose the rights to deliver the CBS network in markets such as Los Angeles, New York and Dallas.

In a statement, the cable platform said: "CBS wants Time Warner Cable to pay over 600 percent more than we pay in other areas from coast to coast for the same programming. It’s unreasonable to expect our subscribers and Time Warner Cable to pay that price and we are negotiating very hard for a reasonable price. This is not a standard debate over price increases. This is different. CBS’s demand for a 600 percent premium is unprecedented. Broadcasters have already hit customers with 84 broadcaster blackouts in the past 18 months. Les Moonves, president and CEO of CBS, has always been outspoken about the programming fees he believes he deserves. He has said “the sky is the limit” when talking about the price he thinks he deserves for his CBS stations, and he clearly means it. He doesn’t seem to care about our customers’ budgets or the going rates for CBS programming. We’re going to continue to negotiate and hope to come to a reasonable resolution before our deadline, so that our customers don’t have to endure yet another broadcaster blackout."

In its own statement, CBS said: “Time Warner Cable is planning to drop the most popular programming in its entire channel lineup because it won’t negotiate the same sort of deal that all other cable, satellite and telco companies have struck with CBS. Time Warner Cable has dropped nearly 50 channels in the last five years. CBS has never been dropped by a cable company before. CBS remains committed to working towards a mutually agreeable contract.”