Time Warner CBS: the Blackout is OverBy: Erika Watts - September 3, 2013
Just in time for the fall TV lineup to get started, CBS and Time Warner and reached a deal that will end a month-long blackout. The blackout affected programming in several markets throughout the country, including New York, Los Angeles and Dallas.
This isn’t the first time that CBS and Time Warner have been on-again/off-again, but NFL fans and CBS fans of shows such as The Big Bang Theory and Person of Interest are sure to be relieved. After a 15-hour breakup near the end of July, CBS and Time Warner broke up for real on August 2. Not only did the breakup affect broadcasting on CBS, but it affected premium programming as well. Showtime is owned by CBS, which posed a big problem for subscribers who were paying Time Warner to receive the premium channel.
The spat all came down to dollars and cents, of course, and the head honchos at CBS and Time Warner spent the month of August playing out the drama in the media. CBS was demanding more money from Time Warner and calling their proposals “shams,” while Time Warner believed the extra money was excessive and accused CBS of “coercive bundling practices.” The companies even traded barbs over Twitter.
Despite all the drama, after the FCC got involved, the two companies were able to reach an agreement Monday evening that involved both sides compromising. “While we certainly didn’t get everything we wanted, ultimately we ended up in a much better place than when we started,” Time Warner Cable CEO Glenn Britt said in a statement. The deal involved Time Warner agreeing to pay more to transmit CBS signals, but below the monthly $2 per subscriber that CBS originally wanted.
CBS and Time Warner can now change their relationship status to “committed” again, but for how long is anyone’s guess.