Time Warner Temporarily Removes CBS in NY, LA

[InMontreal]

Time Warner Temporarily Removes CBS in Major Cities
By BILL CARTER
Published: July 30, 2013

CBS stations were temporarily removed from cable systems in millions of homes in major cities — including New York and Los Angeles — about midnight on Monday, after protracted negotiations between CBS and Time Warner Cable over fees collapsed.

But after an exchange of recrimination-filled statements, and less than a half-hour of cable interruption, the cable company announced that it had halted the blackout of the stations at CBS’s request.

The mercurial series of events followed a daylong negotiation, which was full of fits and starts. The two sides negotiated all day and night Monday, after weeks of public posturing over which side was being more unreasonable in its demands over what are known as retransmission fees. Throughout Monday night, a series of one-hour extensions in the talks seemed to portend that an agreement was near.

But at about midnight Eastern time, the talks broke down, and Time Warner announced it would drop CBS shows, like its summer hit “Under the Dome,” from the homes of millions of Time Warner Cable subscribers. In addition, Time Warner Cable said it would remove the Showtime pay cable channel, home of series like “Homeland,” along with the other cable channels owned by CBS, including TMC, Flix and Smithsonian.

In statements, each side blamed the other. Time Warner Cable said, “The outrageous demands for fees by CBS Corporation have forced Time Warner Cable to remove several of its networks and broadcast stations from our customers’ lineups.” It called CBS’s fee demands “out of line and unfair,” and added, “Sooner or later CBS will threaten others and go dark.”

In its early statement, CBS said, “In spite of all our efforts to hammer out a fair agreement, Time Warner Cable has dropped CBS and Showtime from its channel lineup effective midnight. Meanwhile, they continue to engage in a public campaign of disinformation and voodoo mathematics (featuring wildly inflated percentages) while doggedly restating their positions.”

CBS predicted a settlement would eventually be reached but noted the steps it would take to put pressure to make an agreement. “CBS remains resolute in the pursuit of fair compensation for our programming and will use the full resources available to us to make sure that Time Warner Cable subscribers are aware of its shortsighted, anti-consumer strategy.”

Time Warner Cable also stressed that CBS shows could still be seen on TVs with antennas, and at cbs.com.

Around 5 a.m. on Tuesday, Time Warner Cable said that a new deadline of 5 p.m. Friday was in place.

The move to drop the CBS stations was unusual because in numerous recent cases, warring sides from cable and broadcasters have struck last-minute deals to avoid any interruption of service.

But Time Warner Cable had made clear it intended to limit the fee increases to substantially less than what CBS was demanding. Time Warner Cable has put the increase at 600 percent, a figure that CBS executives described as laughably inflated and wrong. Though no official numbers were publicly discussed, one executive familiar with CBS’s negotiating position put the increase that CBS was demanding at 20 to 25 percent.

The retransmission fees are actually tied to local stations. Cable systems are being asked to pay for the right to carry those stations on their systems. In the past, broadcast networks were content with only guarantees of carriage by cable companies.

But broadcasters, with the CBS president, Leslie Moonves, a leading figure, have in recent years pushed hard to create the same kind of secondary revenues stream – subscribers’ fees – that cable networks enjoy. And the broadcasters have had increasing success.

With that success has come more opposition from cable outlets, which have balked at paying similar fees to broadcast stations that they pay to cable networks, even though in most cases, the broadcast stations are far more watched by their customers.

In a few cases, these showdowns have resulted in extended blackouts of stations in homes where viewers pay cable fees for their television service. That occurred three years ago, in a standoff between Cablevision and the Fox network.

CBS has never before had such an impasse result in the displacement of its stations off a cable system. Mr. Moonves said earlier on Monday in Los Angeles that he was reluctant to take that step but would if necessary.

Time Warner Cable is taking a risk in suspending CBS stations, but it is counting on being able to convince customers that their monthly fees will rise if the broadcaster wins on its demands for hefty increases.

CBS’s timing in this dispute leaves the network in a somewhat more vulnerable position, because other than “Dome” and the reality program “Big Brother,” it does not have a deep store of shows vital to viewers this summer.

But if the dispute were to drag on, the prospect of viewers’ losing access to N.F.L. games may become a crucial source of leverage for the network.

Source : http://www.nytimes.com/2013/07/31/bu...arner-cbs.html

[PokerFace]

http://www.northjersey.com/news/2175....html?page=all

Time Warner Cable wouldn't comment on what kind of fee it's paying CBS to carry its stations now, but Justin Nielson, senior analyst for SNL Kagan, a media-industry data provider in Monterey, California, estimated it was 30 cents to 40 cents per subscriber, per month. CBS is reportedly seeking an increase ranging from $1 to $2, Nielson said. In major markets, stations owned by broadcasters such as CBS are averaging $1 per subscriber, per month, he said.

[InMontreal]

CBS O&O 14 stations, accounts for maybe half of the country population.
1) NY, 2) LA, 3) Chicago, 4) Philadelphia, 5) Dallas, 6) Boston, 11) Detroit, 15) Minneapolis, 16) Miami, 18) Denver, 20) Sacramento, 23) Pittsburgh and 26) Baltimore.

"Time Warner Cable serves customers in the following 29 states: Alabama, Arizona, California, Colorado, Hawaii, Idaho, Illinois, Indiana, Kansas, Kentucky, Maine, Massachusetts, Michigan, Missouri, Nebraska, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, Texas, Virginia, Washington, West Virginia and Wisconsin."

So, if you count 1$ per cable/satellite subscriber per month for CBS... that's a LOT of money to be made on TOP of top-rated advertisement revenues for the top-rated network with the most watched shows. It's always best to not implicate subscribers into the companies negociation problems, but still, the subscriber ends up with loss of services, and after that, regardless how long it takes and how much they settled, the subscriber will ALWAYS end up see a cable bill increase.

Heh, just a few years ago, public and private conventional canadian broadcasters wanted to collect 50 cents per subscriber per month, bumping basic cable/satellite bill to a whooping 5$ to 10$ extra per month depends on the area, and TVViewer was convinced that no service provider would forward that bill to the customer. Now that the major private networks belongs to cable providers with record-breaking profits, they can redirect part of these profits into their own broadcast network and keep it more simple to paying customers.

[TVViewer]

Heh, just a few years ago, public and private conventional canadian broadcasters wanted to collect 50 cents per subscriber per month, bumping basic cable/satellite bill to a whooping 5$ to 10$ extra per month depends on the area, and TVViewer was convinced that no service provider would forward that bill to the customer. .

This is not true. InMontreal has no idea how much broadcasters wanted and how much cable bills would increase. Once again, he is posting about something he knows nothing about.

[InMontreal]

To add insult to injury...

Raycom Media Stations Go Dark On Dish Network Due To Retransmission Dispute

By DAVID LIEBERMAN, Financial Editor | Thursday August 1, 2013 @ 1:58pm EDT

The impasse in contract negotiations left Dish Network customers unable to watch programming from Raycom Media‘s 53 stations in 36 markets beginning at midnight. The broadcaster owns or controls ABC, CBS, Fox, NBC, CW, and MyNetworkTV affiliates in cities including Cleveland, Toledo, Honolulu, Tucson, Baton Rouge, West Palm Beach, Louisville, and Memphis. The issue? Money, of course. Dish “has offered to pay Raycom the same rates as our primary competitors; yet Raycom has stalled negotiations, refusing to accept that fair offer,” says Director of Programming Sruta Vootukuru. Raycom counters that it has agreements “with nearly every distributor in our markets, but to date Dish Network has refused to enter into an agreement with us.” Dish accounts for about 15% of Raycom’s viewers, according to data from SNL Kagan.

http://www.deadline.com/2013/08/dish...stations-dark/

[PokerFace]

LOL.

In the KCBD (NBC Lubbock, Texas) commentary, vice president and general manager of KCBD tells the viewers to "just go to your favourite Internet search engine and type in Dish Network Worst Company in America, and you will see just how unreasonable Dish can be."

http://www.engadget.com/2013/08/01/d...-cbs-blackout/
[KCBD video commentary]

Let me Google that for you:

Hmmm. Dish Network tops the list as the worst company to work for in America, partially based on only 346 Dish employee reviews (Dish has about 34,000 employees). The 346 Dish employees that provided reviews are probably now washing dishes at various local restaurants until they appreciate how lucky they are to be enslaved by Dish.

Slavery is a terrible thing to waste ... At Dish Network, our slaves are worked harder than the law allows. However, since we are above the law, we will continue to do as we please. Suck on that, KCBD!

http://jobs.aol.com/articles/2012/08...or-in-america/
[Aug 2012: The 11 Worst Companies To Work For In America]

http://www.mediabistro.com/prnewser/...#disqus_thread
[Dish employees spew hatred for the company]

[PokerFace]

No Time Warner/CBS deal was reached. CBS and other channels pulled off the air ... plus CBS Internet-streaming access blocked for some.

http://news.cnet.com/8301-1023_3-575...es-fall-short/

http://www.mediabistro.com/tvspy/cbs...e-again_b99399

[InMontreal]

OK, that's a DUMB DUMB DUMB decision : Time Warner Cable pulled Showtime, a Pay TV service.

In other words, for the home viewer, CBS is free over-the-air signal and easily replaceable, the CBS Corporation ad-supported specialty channels were also part of the increase deal and could be easily removed from the lineup for more leverage...

But pulling Showtime ?! How nuts is that? Subscribers are paying top dollars (16$ for 15 channels) for this ad-free PayTV service, which competes against HBO, property of... Time Warner!
http://tvbythenumbers.zap2it.com/201...rriage/195388/

It's like if Rogers pulling The Movie Network due to a dispute with the new Bell-Astral. Keep your dispute in the backyard and stop affecting subscribers who asked nothing about it... and will eventually end up see a bill increase regardless of how it ends.

[InMontreal]

[08/03/13 - 09:16 AM]
[via press release from DirecTV]
DirecTV Applauds Time Warner Cable For Fighting Back In Dispute with CBS

EL SEGUNDO, Calif. -- DirecTV released the following statement today in support of Time Warner Cable:

"Just like the characters in CBS' Under The Dome, all pay TV customers are feeling trapped and helpless as broadcasters expect them to absorb ridiculous rate increases for the exact same programming. In trying to protect our own customers, DirecTV has certainly had its share of these battles, so we applaud Time Warner Cable for fighting back against exorbitant programming cost increases. We are also appalled to learn that CBS is now punishing DirecTV customers, who may happen to have Time Warner as their Internet provider, by denying them access to CBS content online. The conduct of content companies in their efforts to extract outrageous fees from distributors and consumers may have reached a new low."

About DirecTV
(...)

Source : http://www.thefutoncritic.com/news/2...0803directv01/

[PokerFace]

I love watching the various media wars from the sidelines.

CBS blocks the streaming of its website from Time Warner customers, so Time Warner proves it can be an even bigger dick by killing Showtime, etc.

Still, Time Warner has mentioned that it will credit those who pay for Showtime or TMC, so at least some of the frustration can be reduced.

Showtime has already pulled fresh content from Netflix USA (recent episodes of Dexter, Californication, etc.) in the past, so Showtime is obviously not worried about upsetting its competitors, or the viewing public. It's simply a business strategy.

All the major content that Showtime or HBO distributes can be easily found online. If CBS and Showtime want to compete in this fast-paced world, they have to be ready to lose a few battles. That also goes for Time Warner.

During these media wars, the viewing audience is simply collateral damage, however, now that the Internet is the new "television," the viewing audience at least has more alternatives to turn to.

A recent customer survey mentioned that about 7% of customers involved in a dispute that involves the removal of channels will switch providers. So, if Time Warner can put more pressure on CBS, the bleeding of money might be stopped much faster. It's like ripping off a bandaid ... the slower you do it, the more it hurts.

This Time Warner dispute also affects the CBS-owned CW station in LA ... KTLA.

The other affected channels are:

CBS Owned-and-Operated TV stations in the following cities:

Los Angeles: KCBS and KCAL-Ind.

New York: WCBS

Dallas-Ft. Worth: KTVT-CBS and KTXA-Ind.

Boston: WBZ-CBS and WSBK-Ind. (carried in parts of NH and MA)

Chicago: WBBM-CBS (carried in parts of WI)

Denver: KCNC-CBS (carried in Gunnison and Telluride)

Detroit: WKBD-CW (carried in parts of OH)

Pittsburgh: KDKA-CBS and WPCW-CW (carried in parts of OH)

Showtime

The Movie Channel (TMC)

Flix

Smithsonian Channel

Note: CBS Sports Network has not been affected.

[InMontreal]

This Time Warner dispute also affects the CBS-owned CW station in LA ... KTLA.

KTLA is owned by Tribune Company...

[InMontreal]

CBS channels go dark on Time Warner Cable

CBS channels pulled from Time Warner Cable

By Joe Flint
August 2, 2013, 3:31 p.m.

Unable to come to terms on a new distribution agreement, CBS-owned channels have gone dark on Time Warner Cable systems around the country, including Los Angeles and New York City.

In Los Angeles, the signals of KCBS-TV Channel 2 and KCAL-TV Channel 9 were pulled around 2:15 p.m. Friday. In New York, WCBS-TV, the flagship station of the CBS network, was also off of Time Warner Cable systems.

Other channels that were dropped include the CBS-owned cable channels Showtime and The Movie Channel (TMC). The dispute covers only CBS-owned channels. CBS affiliates that are carried by Time Warner Cable are not part of this fight.

Time Warner Cable said customers who receive Showtime and TMC, both of which are sold on an a la carte basis, would receive a credit retroactive to the first day of the blackout. In the meantime, Time Warner Cable is offering the pay channels Starz and Encore in the place of Showtime and TMC. The company did not say whether it would offer a rebate to subscribers for the CBS TV stations.

At issue is the price Time Warner Cable will pay to carry CBS-owned media properties including its local television stations. The two sides have been negotiating for more than a month, and each has waged a nasty advertising campaign against the other in print and on television.

The two are at odds over other terms as well. According to people close to the talks, Time Warner Cable is seeking conditions that would limit CBS' ability to sell product to broadband services such as Netflix or make their channels available to pay-TV distributors that could deliver content over the Internet instead of through cable or satellite. Such services are said to be in the works from Intel Corp. and Sony Corp.

Time Warner Cable, meanwhile, wants the ability to offer its subscribers CBS channels on iPads and other tablet devices inside and outside the home. CBS wants additional compensation for those rights.

"Going to the mattresses," tweeted Kelly Kahl, a senior programming executive at CBS, referencing the mob movie "The Godfather."

Disputes over distribution fees are commonplace in the media industry. However, it is still rare for signals to actually go dark, particularly in big markets such as New York and Los Angeles. On Monday, Time Warner Cable briefly pulled CBS signals when negotiations stalled, only to return them to viewers within half an hour.

After that, talks resumed until late Friday. Now both sides have walked away from negotations and are again taking shots at each other.

"Throughout this process, Time Warner Cable has conducted negotiations in a combative and non-productive spirit, indulging in pointless brinkmanship and distorted public positioning," CBS said.

Time Warner Cable countered that CBS has "refused to have a productive discussion" and that the cable operator would "continue to fight to keep their prices down."

CBS is seeking a significant increase from its last deal with Time Warner Cable, signed five years ago. CBS is currently getting less than $1 per subscriber, per month from Time Warner Cable and would like to get that figure into the $2 range over the life of its next contract.

The network noted that it has managed to negotiate deals with several other distributors including satellite broadcasters Dish Network and DirecTV and New York cable operator Cablevision Systems.

"This is the first time in its history that CBS has been dropped from a cable system," the network said, adding that "Time Warner Cable, on the other hand, has a long history of taking channels off the air -- more than 50 in the last five years alone."

The channels may be off for a while, given the wide gulf between the two companies. An executive familiar with CBS' thinking said, "We will not blink, I promise you that."

Some Wall Street analysts, however, don't think the fight will last long.

Copyright © 2013, Los Angeles Times

Source : http://www.latimes.com/entertainment...,7575076.story

[InMontreal]

So, TWC wants exclusivity by disallowing CBS from dealing with Netflix, so only their customers will be able to watch shows on their iPads inside and outside the house. CBS says fine, if you want exclusivity, here's a 600% increase. TWC is crying out loud it's too much and pulls the plug to get subscribers in their favor for leverage, unaware that regardless how it ends, they'll end up footing the bill anyway. CBS ain't a saint either as they blocked TW internet subscribers from accessing CBS videos on their website. Problem with this is they're also blocking Dish Network and DirecTV subscribers who chose TW as their internet provider, and have nothing to do with this *television* war.

Greedy bastards. Both of them.

Showtime PayTV subscribers will get a retroactive refund AND a free access to Starz in the interim instead of the TW-owned HBO. Solves a conflict of interest here.

Hopefully this carriage conflict will not affect the CBS-Warner adventure in The CW.

[InMontreal]

Time Warner Cable: We'll End Blackout If We Can Offer CBS A La Carte
11:34 AM PDT 8/5/2013 by Alex Ben Block
http://www.hollywoodreporter.com/new...ell-end-599655

CBS responds to this :

As to your groundbreaking “offer” to go a la carte: Anyone familiar with the entertainment business knows that this is an empty gesture. The economics and structure of the cable industry have created a certain way that content is distributed and compensated. We both know that a true a la carte universe is not one that Time Warner Cable welcomes.

In fact, if you thought it was a good idea, why aren’t you offering your new, multi-billion-dollar Lakers and Dodgers channels to your subscribers in Los Angeles on an a la carte basis? Instead, your subscribers in Los Angeles are already being charged in the neighborhood of $4.00 for the Lakers and likely more than that for the Dodgers – both of which you have pulled off broadcast television entirely. These charges are added to the cost of your customers’ basic monthly bill whether they want them or not. At the same time, you find it impossible to pay far, far less than that for the network that brings your viewers the NFL, the PGA Championship, the Masters, the NCAA Basketball tournament, SEC Football, plus 60 Minutes, NCIS, The Big Bang Theory, Under the Dome, David Letterman, the Grammys, and so much more.

Source (and full letter) : http://variety.com/2013/tv/news/cbs-...es-1200574650/

[InMontreal]

I somehow landed on WTMJ-TV's website, NBC affiliate in Milwaukee, WI, owned by Journal Broadcast Group, Inc.
Turns out Time Warner pulled the plug on 4 of the company's stations since 14 DAYS. Two full weeks, and 12 days without negociation. They've setup a website for this : http://www.jbganswers.com
Other stations are :
- WGBA, NBC in Green Bay, WI
- KMTV, CBS in Omaha, Nebraska
- KMIR-TV, NBC in Palm Springs, California

Greed is one of the 7 deadly sins...

[PokerFace]

The free OTA networks are going to have a tougher time negotiating, now that Aereo has some court victories under its belt.

Bell still doesn't have FX Canada, but that's not even an OTA channel.

Consumers need to turn to the Internet as a back-up plan, and soon enough, the Internet might be the only way to keep up with all the content.

The days of relying on one provider for desired content is long gone.

[InMontreal]

Impact of Time Warner Cable Blackout on CBS Prime Ratings Through 7 Days
via press release:

NATIONAL RATINGS HIGHLIGHTS FOR CBS PRIMETIME

FRIDAY, AUGUST 2 - THURSDAY, AUGUST 8

The impact of the Time Warner Cable blackout on the national average has been minimal through seven days.

Compared to the seven-day period during the week prior to the blackout, CBS is down only -0.2% in viewers and is unchanged in adults 18-49.

Compared to the same week last summer, CBS's Friday-Thursday primetime programs during the blackout are up +38% in viewers and up +33% in both adults 18-49 and 25-54.

RATINGS IN CONTEXT OF TIME WARNER CABLE DISPUTE

Time Warner Cable has blacked out CBS stations to 3.2 million of its customers in New York, Los Angeles and Dallas.

Because of CBS’s strong ratings growth this summer, the net effect of the blackout will not present an overall ratings hardship.

In addition, August is traditionally one of the lowest months of the year for ratings and advertising revenue, making the overall financial impact of the blackout negligible.

Source : http://tvbythenumbers.zap2it.com/201...7-days/196660/

[InMontreal]

CBS blackout dispute threatens football fans
Published: Saturday, 31 Aug 2013 | 9:54 AM ET

It's one thing for a business dispute to knock out CBS programming in some three million homes during rerun season. Football season is another matter entirely, and there's little immediate cause for optimism.

There's been no reported progress in negotiations between CBS Corp. and Time Warner, which has blocked CBS programming from its customers' homes in Dallas, Los Angeles and New York since Aug. 2. They are at odds over a deal to carry CBS on Time Warner, most prominently over retransmission fees that the cable operator pays to CBS per subscriber.

Talks are expected to continue over the Labor Day weekend. Meanwhile, Time Warner customers caught in the middle will miss third and fourth round competition in the U.S. Open tennis tournament. The tournament's finals are next weekend, along with opening weekend in the National Football League.

Continue and source : http://www.cnbc.com/id/101001263

[InMontreal]

CBS CORPORATION AND TIME WARNER CABLE REACH CONTENT CARRIAGE AGREEMENT

Deal Includes Retransmission Consent for CBS Owned Stations and Carriage of Showtime, CBS Sports Network and Smithsonian Channel

Programming to Resume by 6 PM, ET Today

NEW YORK- September 2, 2013 - CBS Corporation (NYSE: CBS.A and CBS) and Time Warner Cable and Bright House Networks have reached an agreement for carriage of CBS owned stations on Time Warner Cable systems across the country, as well as Showtime Networks, CBS Sports Network and Smithsonian Channel, it was announced today by representatives for the companies. Programming on all networks will resume at 6:00 PM, ET today. Though specific terms of the deal are not being disclosed, the agreement includes retransmission consent, as well as Showtime Anytime and VOD, for CBS stations on Time Warner Cable systems in New York (WCBS and WLYW), Los Angeles (KCBS and KCAL) and Dallas (KTVT and KTXA.)

Source : http://tvbythenumbers.zap2it.com/201...-today/200432/