Time Warner Cable and CBS Agree to New Deal
Following a blackout of a month, Time Warner Cable and CBS reached an agreement returning the networks programming to millions of subscribers in Dallas, New York and Los Angeles.
The new deal for distribution, which is five years in length, came about Monday afternoon following weeks of strained and tense negotiations that included public posturing by both media giants, which caught the consumer in the middle.
However, both media giants had their own incentives to have a new deal completed. The upcoming fall season is just weeks away, as well as the regular season for the National Football League that will kick off on Sunday September 8.
CBS was worried about losing advertisers and ratings, while Time Warner feared its subscribers would start defecting to other cable providers.
Pressure was put on both to resolve such a high-profile bitter dispute as well by lawmakers locally and nationally.
A hearing had been scheduled for Tuesday by the Los Angeles City Council to push the two sides into an agreement. The news of the settlement received praise from the Federal Communications Commission that had urged both companies to reach an accord.
The terms of the distribution contract were not made public, but Leslie Moonves, the CEO at CBS said the deal delivered all the terms and the value CBS had sought in their negotiations with the cable provider.
Glenn Britt, the CEO of Time Warner Cable said through a statement that while Time Warner did not get all it wanted, ultimately it ended up at a better place than where it started.
The issue was the fees that CBS had wanted to Time Warner to pay for carrying its local television stations. CBS had been seeking a pact for the long-term that would see the subscriber fee paid by Time Warner to carry the stations increase substantially.