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Time Warner Cable and CBS battle over retransmission fees as customers face blackout

In what's become a common negotiation tactic, Time Warner Cable shut off access to CBS this August after the two parties failed to reach an agreement on retransmission fees. Cable and satellite providers have long paid such fees to distribute network channels to their customers even though such stations are available for free over the air. CBS accuses Time Warner Cable of trying to haggle their way out of such an agreement, but the details of negotiations remain unclear as the two sides continue to battle with each other by making efforts to win the public's support. We're tracking updates to this story here, so you're in the right place.

  • Jacob Kastrenakes

    Oct 31, 2013

    Jacob Kastrenakes

    Time Warner Cable lost record 306,000 subscribers amid CBS blackout

    Time Warner Cable logo (1020)
    Time Warner Cable logo (1020)

    Time Warner Cable's (TWC) subscriber count fell dramatically amid the month-long blackout that kept CBS off the air. In its Q3 2013 earnings, the cable provider reveals that it lost 306,000 TV subscribers from July through September, a huge change from last year's Q3 loss of just 29,000 subscribers. According to The New York Times, it's TWC's steepest quarterly loss of TV subscribers ever. TWC specifically notes the dispute with CBS as having negatively impacted its subscriber activity, though it doesn't speak more specifically to the matter. It also says that it spent more on marketing because of the dispute, and that it had to issue $15 million worth of credit to Showtime subscribers who lost service during the blackout.

    Net income also dropped significantly for TWC to $532 million, down from $808 million in this quarter last year. And despite the cable provider's protest against CBS, its average monthly cost of programming per subscriber rose 8.4 percent year over year, coming in at $34.10 per month. TWC says this was due to increases in the cost of carrying programming and the fact that it's been picking up new networks to carry. The Times notes that TWC losing some customers isn't surprising though, as many cable companies have been losing small numbers of subscribers every quarter for several years now.

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  • Greg Sandoval

    Oct 7, 2013

    Greg Sandoval

    Time Warner Cable sucks up to GOP on Obamacare to win support against major TV networks

    Time Warner Cable logo
    Time Warner Cable logo

    Wasting no time to defend NBC or punishing Time Warner Cable, Rep. Henry Waxman (D-CA), a longtime supporter of the entertainment sector, wrote a letter last week to TWC CEO Glenn Britt and said: "A broadcaster has a public service obligation and should be informing viewers about the new options for health coverage under the Affordable Care Act. On the other hand, a cable company should not be pandering to the worst instincts of the reckless Republican extremists that seem to be running the House of Representatives." A Time Warner Cable spokesman said the company plans to respond directly to Waxman.

    The most surprising thing about this email is that someone, presumably from the GOP camp, leaked it and that a lobbyist would trust something this potentially embarrassing to an email. Whatever benefit TWC got out of knocking NBC to the Republicans was likely discounted by the fact that it likely alienated the Democrats — both on the Hill and among the company's customers.

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  • Sean Hollister

    Sep 2, 2013

    Sean Hollister

    CBS and Time Warner Cable reach deal, finally end month-long blackout

    Time Warner Cable logo
    Time Warner Cable logo

    CBS channels have been missing from Time Warner Cable for a full month now, but the companies have finally solidified a deal. In a press release, the companies report that they've reached a retransmission agreement, and CBS programming will return to all affected Time Warner Cable networks by 6PM Eastern today. In addition to traditional CBS channels, the deal will also reinstate content from Showtime, The Smithsonian Channel, and CBS Sports Network — just in time for the real NFL football kickoff this weekend.

    For Time Warner Cable subscribers in New York, Los Angeles, and Dallas, the deal will also include a new feature: access to Showtime Anytime video-on-demand.

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  • Adi Robertson

    Aug 23, 2013

    Adi Robertson

    Time Warner Cable offers free antennas, Best Buy credit to customers caught in CBS blackout

    Time Warner Cable is offering a last-ditch solution to customers as its blackout on CBS channels continues. Today, the company said it would distribute antennas to Time Warner Cable subscribers in four markets, allowing them to watch CBS as an over-the-air broadcast instead of through their cable boxes. "We regret that CBS has put our customers in this position by continuing to withhold its channels," it said in an email to customers, published by Variety. "We are trying to strike a balance between our desire to restore the channels as soon as possible and our responsibility to all of our customers to hold down the rising cost of TV."

    Handing out antennas is a common move for cable companies; Time Warner Cable gave them to Texas subscribers last year during a local blackout. Per instructions posted online, it will offer a limited quantity in its Dallas-Ft. Worth, Los Angeles / Southern California, New York, Milwaukee, and Green Bay stores. More interestingly, it's also reached an agreement that will give any customers in those areas $20 towards an antenna at a local Best Buy. While CBS, Time Warner Cable, and the FCC have all expressed desires to get negotiations over quickly, the current blackout has already lasted three weeks, and distributing antennas isn't a reassuring sign for people who want it over soon.

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  • Greg Sandoval

    Aug 14, 2013

    Greg Sandoval

    Blackout brawler: meet the combative CEO keeping CBS off your television

    CBS chief Les Moonves
    CBS chief Les Moonves

    As the feud between CBS and Time Warner Cable (TWC) over retransmission drags on for a third week, more than 3 million TWC subscribers are blocked from watching programming from the nation's most popular broadcast network. Through no fault of their own, TWC customers couldn't access some of the first NFL preseason games and last weekend's PGA Championship. So, who's behind this?

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  • Nathan Ingraham

    Aug 9, 2013

    Nathan Ingraham

    Time Warner Cable customers miss first NFL games as CBS blackout wears on

    super bowl stock 1024
    super bowl stock 1024

    The NFL preseason kicked off last night, a joyous occasion for football-starved fans around the country — but also a potentially troubling and frustrating event if you're one of the millions of customers caught in the ongoing spat between CBS and Time Warner Cable. It's a battle over how much TWC should pay CBS for the right to retransmit its content, but all that really matters if you're a football fan is that you might not be able to get your fix.

    Most preseason games are carried by local networks, including CBS affiliates in New York and Los Angeles, which means millions of customers throughout this first weekend of action will miss seeing their team take the field. Last night's game between the St. Louis Rams and Cleveland Browns was unavailable for TWC customers in Columbus and Dayton, while fans in Los Angeles and Yuma, AZ couldn't tune in to the Seattle / San Diego game if they happened to be saddled with TWC service, as well.

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  • Greg Sandoval

    Aug 8, 2013

    Greg Sandoval

    CBS says talks with Time Warner Cable have 'gone badly off course'

    CBS logo (STOCK)
    CBS logo (STOCK)

    CBS has fired the latest salvo in the public relations war with Time Warner Cable, this time saying that the cable-TV provider is trying to negotiate terms that would restrict CBS' ability to do business with internet services, such as Netflix and Amazon.

    Reuters reports that a CBS executive said today that the talks between the two companies have "gone badly off course" and accused TWC managers of trying to haggle their way into free content that Netflix and other internet services pay millions to distribute. Who knows how much of this is true. Both sides are flinging so much mud as they try to turn the public against the other.

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  • Matt Brian

    Aug 8, 2013

    Matt Brian

    CBS blackout sparks rise in TV show piracy

    Time Warner Cable logo (1020)
    Time Warner Cable logo (1020)

    CBS's block on Time Warner Cable (TWC) customers is less than a week old and already the blackout is fuelling a rise in TV show piracy. TorrentFreak reports that the percentage of illegal downloads rose substantially in the week since it went dark, as piracy rates for popular CBS show Under The Dome increased by 34 percent over the course of one weekend. As downloads went up, the show unsurprisingly saw its lowest viewing figures this season.

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  • Adi Robertson

    Aug 7, 2013

    Adi Robertson

    Is CBS's web blocking of Time Warner Cable customers illegal? Senator wants FCC to investigate

    CBS TWC block online net neutrality
    CBS TWC block online net neutrality

    Time Warner Cable internet customers are smarting from CBS' decision to block them from viewing shows online, but they have at least one supporter in Congress. Senator Ed Markey (D-MA) has written to acting FCC chair Mignon Clyburn, asking her agency to investigate the blackout. The letter, published in full at the LA Times, urges the FCC to help broker a deal between the two companies, which have been feuding over the cost of carrying CBS channels. "I encourage both parties to remain engaged in good faith negotiations," he writes, "and I also request that the Commission take action to bring the parties together so these negotiations can be concluded in an equitable and expeditious manner."

    Markey says he's not taking a side in the dispute. But he's "particularly concerned" about reports that CBS won't let Time Warner Cable subscribers watch shows on the web. "A consumer's choice of cable television provider should not be tied to her ability to access internet content that is freely available to other consumers," he writes. "In such instances, consumers lose their freedom to access the Internet content of their choice."

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  • Chris Welch

    Aug 5, 2013

    Chris Welch

    CBS says Time Warner Cable a la carte proposal is 'a sham'

    Time Warner Cable logo (1020)
    Time Warner Cable logo (1020)

    The showdown between CBS and Time Warner Cable is now being waged by CEOs. In a letter addressed to CBS president and CEO Leslie Moonves, Time Warner Cable chairman Glen Britt says the cable provider is ready to resume broadcasting the network's channels "with the new economics TWC reluctantly agreed to" in recent negotiations. Other terms from their previous contracts would carry over to this new deal. "Since both parties have lived under those terms productively for many years, we believe we should continue to live with them in the interest of restoring CBS immediately for the benefit of consumers."

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  • Adi Robertson

    Aug 4, 2013

    Adi Robertson

    DirecTV supports Time Warner Cable, says CBS fees trap customers like a giant, invisible dome

    As Time Warner Cable and CBS remain in a standoff over broadcast fees, DirecTV has entered the ring with some words of support and a fairly specific topical reference. In a statement, the company said it was "appalled" that CBS had begun blocking full online episodes of its TV shows for "DirecTV customers, who may happen to have Time Warner as their internet provider." CBS made the move after Time Warner Cable instituted a blackout on CBS channels last week. Rubbing salt in the wounds of Time Warner Cable subscribers, DirecTV then compared the situation to the premise of a popular CBS series.

    "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," it said. "We applaud Time Warner Cable for fighting back against exorbitant programming cost increases." Time Warner Cable and CBS have so far been unable to come to terms over the retransmission fees for Showtime, CBS, and other channels; Time Warner has complained it's being asked to pay an "outrageous increase," and it's also reportedly attempting to limit how CBS can sell its programming to Netflix and other outlets.

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  • Sean Hollister

    Aug 3, 2013

    Sean Hollister

    In vengeful move, CBS blocks web episodes for Time Warner Cable internet subscribers

    CBS TWC block online net neutrality
    CBS TWC block online net neutrality

    CBS stations have disappeared for many Time Warner Cable subscribers today, after the companies' negotiations over retransmission fees failed to reach an amicable conclusion. But cable TV users aren't the only ones without access to episodes of their favorite shows: CBS is also blocking Time Warner Cable internet subscribers from watching episodes on its website CBS.com. We can confirm that when trying to access a full episode of any CBS show, like Elementary or Two and a Half Men, those with Time Warner Cable internet will see an attack ad instead of their normal programming.

    While that might sound like a valid tactic to use in a no-holds-barred game of chicken like the one these companies are playing right now, it also flies in the face of net neutrality principles. Not net neutrality laws or rules, mind you, as the FCC Open Internet rules restrict broadband providers, not content companies like CBS.

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  • Chris Welch

    Aug 2, 2013

    Chris Welch

    CBS channels disappear from Time Warner Cable yet again as negotiations fail

    Time Warner Cable logo (1020)
    Time Warner Cable logo (1020)

    For the second time this week, CBS stations have gone dark for Time Warner Cable customers in New York, Los Angeles, Dallas, and other major markets. The two companies yet again failed to reach an agreement on retransmission fees that allow the cable operator to carry CBS programming. After a very brief blackout early this week, CBS and TWC agreed to lengthen their negotiating timetable to today at 5PM ET, but comments from both sides suggest a deal remains nowhere in sight.

    "CBS has refused to have a productive discussion," a Time Warner Cable spokesperson tells The Verge. "It’s become clear that no matter how much time we give them, they’re not willing to come to reasonable terms. We thank our customers for their patience and support as we continue to fight hard to keep their prices down." Naturally CBS has a very different view on things, telling Variety, "We deeply regret this ill-advised action, which is injurious not only to our many affected viewers, but also to Time Warner Cable itself." CBS accuses the cable company of negotiating "in a combative and non-productive spirit" while "maintaining antiquated positions no longer held by any other programming distributor in the business."

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  • Chris Welch

    Jul 30, 2013

    Chris Welch

    CBS and Time Warner Cable set Friday deadline in ongoing retransmission feud

    Time Warner Cable logo
    Time Warner Cable logo

    Time Warner Cable quickly restored CBS programming after briefly implementing a blackout in select markets early Tuesday, but viewers may face another interruption if a deal can't be reached by Friday. Both sides have agreed on a new negotiating deadline of Friday at 5PM in their continued quarrel over retransmission fees. "We have agreed to an extension with CBS until Friday, August 2nd at 5pm ET, while we continue negotiations," the network told The Verge in a statement. The revised cutoff comes after a number of unfruitful last minute extensions Monday evening.

    Time Warner Cable began removing CBS programming shortly after midnight but quickly reversed itself at the broadcaster's request, telling The Wall Street Journal, "We were in the process of removing the programming when they requested the halt." CBS and Time Warner Cable now have the better part of a week to work things out. With TWC still describing CBS' terms as "outrageous" though, the prospect of a longer blackout for cable audiences in New York, Dallas, Los Angeles, Boston, Chicago, Denver, Detroit, and Pittsburgh is very real.

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  • Jeff Blagdon

    Jul 30, 2013

    Jeff Blagdon

    Time Warner begins CBS blackout, immediately backtracks

    remote control netflix button asus stock 1020
    remote control netflix button asus stock 1020

    With a deal failing to materialize between CBS and Time Warner Cable, the former's programming has been removed from TWC's lineup in several markets across the country. The two have been at an impasse for months over retransmission fees that TWC has to pay CBS in order to carry its content. The cable company says that it has pulled local CBS broadcasts in New York, Dallas, Los Angeles, Boston, Chicago, Denver, Detroit, and Pittsburgh. It's also removed Showtime, TMC, Flix, and Smithsonian from its nationwide lineup.

    Last week, a Time Warner representative stated publicly that it would recommend affected customers turn to Aereo in order to watch their favorite CBS programming. In a post on its blog, TWC stood by the earlier statement, writing that "in NYC only, CBS is available through Aereo, which is currently offering a one-month-free-trial." The service allows subscribers to watch terrestrial TV broadcasts captured with a dime-sized antenna at Aereo's facilities. Likewise, TWC subscribers in affected areas can still catch CBS programs the old fashioned way. It's not clear how long the outage can be expected to last, but we'll keep you updated as more details come out.

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  • Greg Sandoval

    Jul 23, 2013

    Greg Sandoval

    Strange bedfellows: Aereo gets help from Time Warner Cable and Comcast

    aereo-dvr-racks
    aereo-dvr-racks

    A photograph of Aereo's DVRs at the company's Brooklyn facilities.

    Aereo, the company that uses the web to deliver live TV to customers without requiring them to pay hefty cable fees, is riding a wave of good news.

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  • Greg Sandoval

    Jul 22, 2013

    Greg Sandoval

    Aereo could win big in fee dispute between CBS and Time Warner Cable

    chet-kanojia-aereo-ceo-brooklyn
    chet-kanojia-aereo-ceo-brooklyn

    Aereo CEO Chet Kanojia

    Time Warner Cable says if it can't reach an agreement with CBS over the fees it pays to retransmit the network's programs, it will recommend that customers try Aereo, according to a published report.

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