Time Warner, CBS Dispute Ends: Blackout Over, Media Giants Reach Agreement
Time Warner Cable suscribers can finally watch "Under The Dome," "Big Brother," and "60 Minutes" on their TV screens again.
CBS Corp. confirmed that it has reached an agreement with Time Warner Cable, which marks the end of a month-long blackout of CBS network shows at major markets across the country. For the markets affected, CBS programming resumed yesterday at 6:00 p.m. ET.
According to USA Today, both companies didn't release specific terms of the new agreement, which states the amount of money that TWC pays CBS for the rights to have CBS-owned TV stations. The new agreement also includes the rights to the cable networks owned by CBS Corp., which include Showtime and CBS Sports Network. In an email to company employees, CBS CEO Leslie Moonves wrote that the final agreement was a compromise for both parties.
"This has been a difficult time for our viewers and for CBS," Moonves wrote. "I am glad it's behind us. It's good to be back."
TWC, which is the country's second largest cable provider, dropped the CBS stations from its lineup after the two parties were unable to reach an agreement Aug. 2. Since the blackout, more than 3 million customers in eight markets (including ones in New York City, Dallas and Los Angeles) were unable to watch any CBS-owned programs.
The disagreement was mainly over retransmission fees. USA Today reported that CBS wanted to control digital rights and be paid more for its progamming because of the network's popular shows, which include "The Big Bang Theory" and "NCIS." TWC said the shows were available over the air, and had offered to provide an a la carte service regarding CBS stations for its cable suscribers if an agreement couldn't be reached.
According to USA Today, analysts predicted that TWC and CBS would strike a deal soon due to NFL's regular season beginning Sept. 5. Both parties would end up losing if they couldn't take advantage of the profitable advertising revenues that are generated from NFL games.
TWC CEO Glenn Britt commented on the resolution in a statement.
"We're pleased to be able to restore CBS programming for our customers, and appreciate their patience and loyalty throughout the dispute," he said. "While we certainly didn't get everything we wanted, ultimately we ended up in a much better place than where we started."
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