The two sides fail to reach a fee agreement to continue carrying CBS in three major U.S. cities, but online viewing alternatives give consumers options elsewhere. August 2, 2013 2:31 PM PDT (Credit: Mari Benitez/CNET) With changes in technology complicating the balance of power between television creators and distributors, CBS and Time Warner Cable failed to reach an agreement on fees Friday after weeks of talks and multiple deadline extensions, resulting in the broadcaster's flagship network going dark for the cable giant's subscribers in several major U.S. cities. The first time in its history that CBS has been dropped from a cable system, it opens the door for companies like Aereo, the online streamer of over-the-air broadcasts, to deliver those transmissions in real time for Time Warner subscribers in New York, and for others who have lost connection to shows like "Under the Dome" to watch online at CBS's website or Amazon.com. CBS, which is the parent company of CNET, said in a statement it "deeply regrets" that Time Warner Cable has dropped its network in New York, Los Angeles, and Dallas, as well as other smaller markets. It criticized Time Warner for "indulging in pointless brinksmanship" and twisting the facts to the public, and said it is eager to make an agreement with "fair compensation for the most-watched television network with the most popular content in the world." "We hope and believe this period of darkness will be short," it said. Time Warner Cable said that when it agreed to continue talks until Friday, it expected to engage in a meaningful negotiation with CBS. "Since then, CBS has refused to have a productive discussion," it said. "It's become clear that no matter how much time we give them, they're not willing to come to reasonable terms," it added in a statement. In addition to the blackout of CBS in select markets, CBS properties Showtime, TMC, FLIX, and Smithsonian are also going dark for all subscribers. CBS Corp. and Time Warner Cable have been negotiating a new carriage pact with under multiple extensions to their previous agreement that expired June 30. Failing to reach an agreement on retransmission fees -- money that CBS requires from TWC to carry the channel for its subscribers -- comes as customers who lose CBS stations face more online alternatives. Time Warner has gone so far as to encourage New York customers to explore Aereo, the online streamer of over-the-air broadcasts, to pick up the broadcasts that have been dropped from its cable packages. Many CBS shows are available on the network's own Web site, typically for a limited window of time, and Amazon Prime customers can watch "Under the Dome" on its Instant Video service four days after they run.
The two sides fail to reach a fee agreement to continue carrying CBS in three major U.S. cities, but online viewing alternatives give consumers options elsewhere.
With changes in technology complicating the balance of power between television creators and distributors, CBS and Time Warner Cable failed to reach an agreement on fees Friday after weeks of talks and multiple deadline extensions, resulting in the broadcaster's flagship network going dark for the cable giant's subscribers in several major U.S. cities.
The first time in its history that CBS has been dropped from a cable system, it opens the door for companies like Aereo, the online streamer of over-the-air broadcasts, to deliver those transmissions in real time for Time Warner subscribers in New York, and for others who have lost connection to shows like "Under the Dome" to watch online at CBS's website or Amazon.com.
CBS, which is the parent company of CNET, said in a statement it "deeply regrets" that Time Warner Cable has dropped its network in New York, Los Angeles, and Dallas, as well as other smaller markets. It criticized Time Warner for "indulging in pointless brinksmanship" and twisting the facts to the public, and said it is eager to make an agreement with "fair compensation for the most-watched television network with the most popular content in the world."
"We hope and believe this period of darkness will be short," it said.
Time Warner Cable said that when it agreed to continue talks until Friday, it expected to engage in a meaningful negotiation with CBS. "Since then, CBS has refused to have a productive discussion," it said.
"It's become clear that no matter how much time we give them, they're not willing to come to reasonable terms," it added in a statement.
In addition to the blackout of CBS in select markets, CBS properties Showtime, TMC, FLIX, and Smithsonian are also going dark for all subscribers.
CBS Corp. and Time Warner Cable have been negotiating a new carriage pact with under multiple extensions to their previous agreement that expired June 30.
Failing to reach an agreement on retransmission fees -- money that CBS requires from TWC to carry the channel for its subscribers -- comes as customers who lose CBS stations face more online alternatives. Time Warner has gone so far as to encourage New York customers to explore Aereo, the online streamer of over-the-air broadcasts, to pick up the broadcasts that have been dropped from its cable packages. Many CBS shows are available on the network's own Web site, typically for a limited window of time, and Amazon Prime customers can watch "Under the Dome" on its Instant Video service four days after they run.
