Entertainment

The Battle Between Time-Warner and CBS

If you’re currently subscribed to Time-Warner Cable and you happen to live in Dallas, Los Angeles, or New York, then you might have noticed something very unusual. Namely, CBS and its subsidiary channels have been dropped.

See, back in 1992, Congress passed a law that requires cable providers (like Time-Warner Cable) to carry local broadcast channels (like CBS) and prohibits them from charging those local stations for carrying their signal. Naturally, this has created a lot of controversy over what fees cable providers are allowed to charge and what compensation is owed to network channels. For example, broadcasters are allowed to charge “retransmission fees” to their cable providers.

It was over these retransmission fees that the fight between Time-Warner and CBS started.

CBS is arguing that their content has been undervalued when compared to the other networks carried by Time-Warner. Their claim is that CBS shows are highly popular, yet Time-Warner refuses to pay appropriate retransmission fees despite charging its customers more. Naturally, Time-Warner counters this claim by stating that they are paying CBS at a fair rate and that the broadcaster was seeking a 600% increase in its rates.

After the two sides failed to reach the deadline for a contractual agreement, Time-Warner proceeded to drop CBS in its three largest media markets: New York, Los Angeles, and Dallas. These markets comprise nearly three million customers and viewers, dealing a substantial blow to CBS. Time-Warner and CBS also ran an advertising blitz against each other, trying to sway public opinion and create consumer outrage.

Since the blackout, Time-Warner has offered a credit to customers who were subscribed to Showtime and TMC as compensation for the loss of CBS. The cable company is also urging its customers to access CBS through the digital TV provider Aereo, which would allow Time-Warner to host the network without having to worry about retransmission fees. Meanwhile, concerns are rising about CBS and how its upcoming broadcasts of NFL football and the rest of its fall season lineup will play out in the markets where it’s been blocked.

While disputes between cable companies and broadcasters is nothing new, few have been as high-profile and potentially expensive as this current legal battle.


Here is a list of the stations affected by the Time-Warner blackout and negotiations:

Boston: WBZ-CBS and WSBK

Chicago: WBBM-CBS

Dallas: KTVT-CBS and KTXA

Denver: KCNC-CBS

Detroit: WKBD-CW

Los Angeles: KCBS and KCAL

New York: WCBS and WLNY

Pittsburgh: KDKA-CBS and WPCW-CW

Image Credit: dj venus on Flickr

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