April 25, 2024

A Wait for CBS and Time Warner Cable to Make Up

As a result, CBS’s stations, and cable networks owned by CBS, remained blacked out in many areas, including large parts of New York, Los Angeles and Dallas.

The continuing impasse resulted in two popular shows on the pay cable channel Showtime, “Dexter” and “Ray Donovan,” being unavailable to fans in those areas on Sunday night. And it means that the most popular drama of the summer, CBS’s “Under the Dome,” is likely to be blocked to millions of viewers on Monday night.

CBS released a statement on Sunday saying no negotiations were taking place and it stressed its willingness to continue talking. A Time Warner Cable spokeswoman, Maureen Huff, said in an e-mail message: “We’re ready and willing to talk at any point. We want to resolve this, and are absolutely negotiating in good faith.”

The cable company said in a statement that it regretted “the inconvenience to our customers (and their viewers) and look forward to resolving the situation as soon as possible.”

But several media analysts suggested the standoff might be protracted, with predictions ranging from about 10 days to as long as six weeks. The later date is associated with the start of the N.F.L. season, a package of programming that everyone involved agrees cannot be denied to subscribers.

Indeed, timing seems to be the dominant factor driving the dispute. CBS has continued to insist that it would make its programs available to the cable company throughout the negotiations and that the cable company acted now to remove them from its service because Time Warner Cable would lose leverage as the football season got closer — a point the cable executives do not dispute. They acknowledge they need to push the issue now.

Time Warner Cable has also acted at a time when similar showdowns are increasingly common across the country. The impasse in almost all the disputes centers on what are known as retransmission fees — compensation for putting broadcast stations on cable systems. In this case CBS, according to several analysts following the situation, has asked for an increase from about $1 per subscriber to about $2.

The cable company initially labeled the demand exorbitant, and said the costs would have to be passed on to customers. (Cable prices have increased recently to an average of $60 to $70 a month, though analysts point out that the per-channel price has actually dropped because so many new channels have been added.)

More recently the two sides have suggested that the fee issue is either close to being resolved or that the differences are not insurmountable. But there is deep disagreement over concessions Time Warner Cable wants from CBS related to programming — mostly its catalog of older shows, which CBS sells to digital distributors like Netflix and Amazon. Time Warner Cable wants access to those programs on terms it says are fair and reasonable; CBS says that the company is essentially seeking something free, and that these deals have nothing to do with the retransmission negotiation anyway.

Broadcast networks like CBS, ABC, NBC and Fox gained the right in 1992 to demand compensation for allowing their stations’ signals to be carried on cable systems. At first deals were made for cable channels owned by the network, but more recently the broadcasters began demanding cash, seeking to pay for increased program costs by gaining the same dual revenue stream, along with advertising, that cable networks enjoyed. The fees have been steadily increasing. SNL Kagan, a research company, estimated that revenue from retransmission fees will increase to $4.3 billion in 2015, from about $2.4 billion last year.

CBS executives have cited the popularity of their network’s shows to justify a fee price closer to what successful cable networks get from cable operators. ESPN, for example, gets the top price of any network, $5.54 monthly per subscriber, according to SNL Kagan.

Article source: http://www.nytimes.com/2013/08/05/business/media/viewers-wait-for-cbs-and-time-warner-to-make-up.html?partner=rss&emc=rss

The Media Equation: Self-Serving War of Words by 2 Giants in Television

It’s a significant inconvenience for viewers, but it is not the only irritation in the by-now-familiar rumbles between the companies that own the pipes and the companies that make the programming that goes into those pipes.

While it may be disappointing that some of us will miss a rerun of “Dexter” on Showtime, which is owned by CBS, or the network’s summer hit “Under the Dome,” what makes it worse is the suggestion by both sides that they are only trying to stick up for us. Blacked-out Time Warner Cable customers were confronted by the following propaganda on their screens:

“The outrageous demands from CBS, the owner of Showtime and TMC, has forced us to remove it from your lineup while we continue to negotiate for fair and reasonable terms.”

“Forced us. . . .” Really, Time Warner Cable? It seems more like the business negotiation you were having with a supplier did not yield the desired result and you’ve chosen to turn up the heat.

Not to be outdone, a statement from CBS made sure everyone understood that the network was really doing the people’s work in responding to the news:

“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.”

There’s more where that came from — “disinformation,” “voodoo mathematics” and “wildly inflated percentages” — but you get the idea.

Here’s an idea for both parties: Leave us out of it.

We know that you are fighting over lucre, not our inalienable rights as cable consumers. Pretending that you are fighting on our behalf rather than in the interests of your shareholders and executives is infantilizing and unbecoming. CBS is coming off another record year, Time Warner Cable’s stock is storming along, and the fight over retransmission fees is about how the pie is sliced, nothing more.

We have all grown used to the respective parties turning programming on and off as the negotiating table requires, but your bombast is tired, your motives are transparent and it’s clear that the public dimensions of this business conflict are far down the list of priorities.

Writing in the comments section accompanying the news in The New York Times, one reader spoke for many of us:

“These games of chicken are depressingly common among cable companies and networks across the country — made all the more obnoxious by the marketing spin from both sides intended directed at customers they assume to be economic illiterates. They are nothing more than battles between media behemoths over who can stick their hands deeper into the pockets of the remaining viewers beholden to their dying business models.”

So, as you were, guys. Continue to bash in each other’s heads all you want. Just don’t pretend this is a noble crusade for the consumer.

Article source: http://www.nytimes.com/2013/08/05/business/media/time-warner-and-cbs-fighting-for-themselves.html?partner=rss&emc=rss

CBS in Contract Showdown With Time Warner Cable

That would mean that viewers in those cities involved in such ongoing summer shows as “Under the Dome” and “Big Brother” would not be able to see them if they were subscribers to Time Warner Cable. In addition, the CBS-owned cable network Showtime would probably also go off the air on the systems in those cities, leaving fans of shows like “Ray Donovan” without a way to see the initial showing of new episodes.

CBS executives charged that Time Warner Cable has refused its request to extend the current contract between the parties, precipitating the confrontation. The contract ended in June, and the two sides did agree to an extension that will end next Wednesday. None of the financial terms of the dispute have been disclosed.

CBS’s plan is to create pressure on Time Warner Cable by inciting its subscribers to complain about the prospect of losing CBS programs, and suggesting ways those subscribers can find alternate options to find CBS shows “on Time Warner Cable’s competitors,” as CBS put it in a statement.

The CBS statement also said, “Time Warner Cable is planning to drop the most popular programming in its entire channel lineup because it won’t negotiate the same sort of deal that all other cable, satellite and telco companies have struck with CBS. Time Warner Cable has dropped nearly 50 channels in the last five years. CBS has never been dropped by a cable company before. CBS remains committed to working towards a mutually agreeable contract.”

The move is similar to previous examples of brinkmanship exercised by networks in the midst of a negotiating impasse with a cable company. In several previous instances, cable companies have gone to the point of allowing networks to be blocked on their systems, precipitating outraged complaints from subscribers.

In general, the networks have had the leverage in these disputes because they have programs viewers want to see and those viewers are paying cable companies for the right to watch television.

But cable outlets have shown increasing resistance to demands from network for higher fees for what is known as retransmission consent. Cable companies must gain permission from stations to retransmit the broadcast signal to their subscribers. The fees, once modest, have grown in recent years and CBS has been among the most aggressive of the networks in seeking sizable increases.

Article source: http://www.nytimes.com/2013/07/19/business/media/cbs-in-contract-showdown-with-time-warner-cable.html?partner=rss&emc=rss

Netflix Wins Disney Movie Rights for 2016

SAN FRANCISCO — Netflix’s video subscription service has trumped pay-TV channels and grabbed the rights to show Disney movies shortly after they finish their runs in theaters.

The multiyear licensing agreement announced Tuesday represents a breakthrough for Netflix as it tries to add more recent movies to its popular service that streams video over high-speed Internet connections.

It is the first time that one of Hollywood’s major studios has sold the coveted rights to Netflix instead of a premium television network like HBO, Starz and Showtime.

Starz currently holds the rights to Walt Disney’s movies under a deal that expires in 2015.

Beginning in 2016, Netflix will be able to show Disney movies about seven months after they leave theaters.

Netflix did not disclose how much it is paying Disney.

Article source: http://www.nytimes.com/2012/12/05/business/media/netflix-wins-disney-movie-rights.html?partner=rss&emc=rss