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Guest Message by DevFuse

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Time Warner Cable, CBS pull back from blackout


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#1 ONLINE   SayWhat?

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Posted 30 July 2013 - 01:27 AM

 

Time Warner Cable and CBS said early Tuesday morning that they will shrug off their self-imposed midnight Tuesday deadline and continue to negotiate on a new retransmission contract.

 

In a strange sequence of brinkmanship, their decision to pull back at the last minute from a possible blackout in key U.S. markets was announced merely 30 minutes after they separately told reporters at around midnight that they had walked away from their talks and allowed the network's signals to go dark.

 

CBS receives about 88 cents per month per subscriber from pay-TV providers, estimates investment bank RBC Capital Markets. CBS generated about $250 million in retransmission revenue last year and expects to top $1 billion by 2017.

 

In comparison, ESPN, the clear market leader in fees from pay-TV providers, receives about 5.50 per subscriber, according to RBC Capital. Other popular cable channels, such as TNT, USA Network and FX, demand about $1 per subscriber.

 

TWC has said that CBS wants to raise the fee as much as 600%. That figure is based on an average fee TWC pays for all CBS stations in its service areas, TWC says.

http://www.usatoday....s-dark/2598463/


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#2 OFFLINE   PCampbell

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Posted 30 July 2013 - 05:50 AM

Most can get CBS with a simple antenna just like we did in the 70s and 80s and its free. If more people did that CBS may not want as much money. 


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#3 OFFLINE   Richard

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Posted 30 July 2013 - 06:49 AM

CBS should be trying to get as many eyes on it's programming as possible.  They should be PAYING Time Warner, DirecTV, DISH, etc., to carry their stations.  Not the other way around.  CBS needs Time Warner, Time Warner does not need CBS.


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#4 OFFLINE   gov

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Posted 30 July 2013 - 07:43 AM

Just throwing this out, not sure it is the answer:

 

Cable customers in the reception contour of a specific station can have the OTA station with no additional $$$ through their cable franchise to the station.

 

Folks outside the contour would pony up for the service and the charge is split between the cable co and the TV station.

 

I might entertain the idea that out of contour fee might be regulated by Congress, although I would not trust them very fair to do anything that would be considered by most folks to be 'fair'.



#5 OFFLINE   dpeters11

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Posted 02 August 2013 - 04:14 PM

Looks like the blackout is starting, along with Showtime, TMC, Flix and Smithsonian nationwide.



#6 ONLINE   SayWhat?

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Posted 02 August 2013 - 05:20 PM

 

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, The Movie Channel (TMC) and the CBS Sports Network. 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.

http://www.latimes.c...0,7575076.story


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#7 OFFLINE   TheRatPatrol

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Posted 02 August 2013 - 08:39 PM

And TWC wants providers to pay $5.00 a month for the new Dodgers channel. Talke about being hypocritical.

#8 OFFLINE   mailiang

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Posted 03 August 2013 - 09:41 AM

This is great news for TWC's competitors! Customers will be running to Dish, DTV and Fios telcos! No more Under The Dome, Ray Donavan or Dexter episodes?  :bang  Please! :biggrin:

 

 

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#9 OFFLINE   RAD

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Posted 03 August 2013 - 10:30 AM

DIRECTV is backing TWC in the dispute with CBS, from http://investor.dire...eleaseID=782602

"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."

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#10 OFFLINE   mailiang

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Posted 03 August 2013 - 11:41 AM

DIRECTV is backing TWC in the dispute with CBS, from http://investor.dire...eleaseID=782602

As far as CBS not allowing TWC's internet customers to access their streaming programs, according to my wife, who is an attorney, CBS is now opening themselves up to a real legal problem.

 

 

Ian ;)


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#11 OFFLINE   Athlon646464

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Posted 04 August 2013 - 06:36 AM

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#12 OFFLINE   nmetro

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Posted 04 August 2013 - 11:44 AM

Maybe all the cable and satellite companies should file a suit with the federal government. Tow wit, broadcast televisions stations are licensed by the federal government and the frequencies the broadcast upon are owned by the federal government. This also means, these same said frequencies are owned by the taxpayers. Congress is at fault here by allowing the NAB to write various bills that allow broadcasters to charge for carrying signals, which are available freely over the air. The broadcasters even went as far to prohibit the carriage of national network feeds, so they can have exclusive control of the area they serve "in the public interest". The reason why it is next to impossible to get WCBS, WNBC, WABC and WNYW outside the New York area, for example. The NAB required DirecTV and DISH to uplink every broadcast station. It was this reason why DISH tried to merge with DirecTV 10 years or so ago, because of the capacity, and cost, required to achieve this. This also contributes to why some channels cannot be carried in HD, because broadcast channels are insisting on the bandwidth. In the end, we subscribers, are forced to pay fro channels which are making money on their advertising, but they want more. And most of the broadcast channels are owned by the same media companies which own most of the pay TVC content. This is corporate greed; plain and simple. This consolidation also explains why pay TV channels, despite their number, have less variety than 5 or even 10 years ago.

 

What is bad about this is that subscribers must pay for the signals they can get for free over the air. People, like myself, have no choice. It is 40 miles to the broadcast source with  mountains and mesas in the way to get a clear signal. an antenna is not an option, because the homeowner's association disallow them because basic cable is available for this purpose. That is another another issue.

 

So, I applaud DirecTV joining Warner with this; and I hope other providers will do so, as well.



#13 OFFLINE   inkahauts

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Posted 04 August 2013 - 12:19 PM

As far as CBS not allowing TWC's internet customers to access their streaming programs, according to my wife, who is an attorney, CBS is now opening themselves up to a real legal problem.


Ian ;)


I can't see anyway that's possible since you don't pay for any streaming services from any CBS stations. Its all considered free add ons and they are always subject to changes and limitations.

#14 ONLINE   SayWhat?

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Posted 04 August 2013 - 01:28 PM

^^  It goes into the Net Neutrality bit where someone is being punished based on the ISP and website.  CBS might be within their rights to block all streaming during a carrier dispute, but not just a certain ISP, even if indirectly related to the dispute.


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#15 OFFLINE   mailiang

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Posted 04 August 2013 - 02:30 PM

I can't see anyway that's possible since you don't pay for any streaming services from any CBS stations. Its all considered free add ons and they are always subject to changes and limitations.

^^  It goes into the Net Neutrality bit where someone is being punished based on the ISP and website.  CBS might be within their rights to block all streaming during a carrier dispute, but not just a certain ISP, even if indirectly related to the dispute.

 

 

 

DTV customers pay for CBS programming. If such customers or anyone else are using an ISP who's broadcast carrier is in dispute with CBS, CBS can not exclude them from accessing their IT programing content.

 

On another note, a CBS news crew was robbed Friday. Could it be that TWC customers are looking for payback already? :biggrin:

 

http://www.huffingto..._n_3704053.html

 

 

Ian


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#16 ONLINE   SayWhat?

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Posted 05 August 2013 - 07:02 AM

There's an article out there this morning saying that CBS stands to lose $400,000 per day during this weenie-measuring fest.  That number seems low to me even if it is only from TWC.


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#17 OFFLINE   RAD

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Posted 05 August 2013 - 08:08 AM

Over a DSLReports they's a news story that says besides pricing issues TWC doesn't want CBS to sell content to NetFlix.


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#18 OFFLINE   joshjr

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Posted 05 August 2013 - 08:52 AM

Over a DSLReports they's a news story that says besides pricing issues TWC doesn't want CBS to sell content to NetFlix.

 

Since when does a company like Dish have say over a broadcast station offering content to Netflix.  Maybe CBS was actually right on this one.  I dont agree with a huge increase but I also don't like the idea of Dish stating you can't offer your content on Netflix.  If Dish wants part of that business too then maybe they should do a better job offering better internet people want to get paid on both ends.


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#19 OFFLINE   Diana C

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Posted 05 August 2013 - 08:55 AM

Over a DSLReports they's a news story that says besides pricing issues TWC doesn't want CBS to sell content to NetFlix.

 This was reported today in the NY Times as well.  According to the Times article, CBS and TWC have effectively agreed on a retransmission fee.  The sticking point is that TWC wants access to the full CBS catalog for TWC's on-demand service.  CBS currently charges per episode fees through Amazon and Vudu for access to this content and so they are asking for a VERY large payment to make this available to TWC.  If you look at what is available on DirecTV's CBS on-demand service you'll see that it is only a few series and then only 2 or 3 episodes (usually just the 2 and 3 week old episodes).  This is very different from the way NBC, for example, handles their on-demand content.

 

The reality is that there is very little difference these days between the so-called "broadcast" (aka "over the air") networks and cable channels.  The number of people that get their network content via an OTA antenna is a small fraction of the total number of households that receive it via cable.  It is getting to the point that OTA transmission is becoming more of a burden than a benefit to channels in some markets.


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#20 OFFLINE   TheRatPatrol

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Posted 05 August 2013 - 10:19 AM

Didn't D* and CBS just come to terms on a new deal this past year? Anyone know how long that deal is for?

#21 OFFLINE   bobcamp1

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Posted 05 August 2013 - 12:13 PM

^^  It goes into the Net Neutrality bit where someone is being punished based on the ISP and website.  CBS might be within their rights to block all streaming during a carrier dispute, but not just a certain ISP, even if indirectly related to the dispute.

 

There's no law guaranteeing network neutrality here in the U.S.  The FCC has put out guidelines and a few rules, but many claim the FCC lacks the authority to do even that.  CBS can do whatever they want.



#22 OFFLINE   carlsbad_bolt_fan

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Posted 05 August 2013 - 02:38 PM

Over a DSLReports they's a news story that says besides pricing issues TWC doesn't want CBS to sell content to NetFlix.

 

 

Since when does a company like Dish have say over a broadcast station offering content to Netflix.  Maybe CBS was actually right on this one.  I dont agree with a huge increase but I also don't like the idea of Dish stating you can't offer your content on Netflix.  If Dish wants part of that business too then maybe they should do a better job offering better internet people want to get paid on both ends.

It wasn't Dish, it was Time Warner.


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#23 OFFLINE   carlsbad_bolt_fan

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Posted 05 August 2013 - 02:41 PM

An offer was made to CBS:

 

http://finance.yahoo...-183343507.html

 

 

By Liana B. Baker

 

(Reuters) - Time Warner Cable Inc Chief Executive Glenn Britt sent a letter to CBS Corp CEO Les Moonves on Monday offering a controversial new proposal to end the blackout of CBS shows that started Friday in markets such as New York and Los Angeles.

 

The letter is the latest development in a contentious public battle between the No. 1 rated U.S. broadcast network and the no. 2 cable provider that has left millions of customers unable to watch the summer hit "Under the Dome" and live sports such as golf that airs on CBS.

Britt said that Time Warner Cable could offer customers the chance to pay for the CBS network on a standalone basis, known as the "a la carte" model, which is viewed as a risky proposition in the U.S. cable industry.

 

"Rather than our debating the point, we would allow customers to decide for themselves how much value they ascribe to CBS programming," Britt said.

 

Time Warner Cable said it is waiting for CBS to accept or reject its proposal.

 

"CBS received Mr. Britt's 'offer' simultaneous with its release to the media. We are formulating our response," CBS said in a statement.

 

Media companies like CBS and its rivals sell packages of channels known as bundles to operators, a common practice in the cable industry. CBS cable channels such as Showtime also went dark in the dispute because the company negotiates its programming deals in one bundle.

 

Letting customers cherry pick the channels they want would cut into revenue of media companies. Needham & Co analyst Laura Needham estimated in July that the cable industry including media content providers could lose 50 percent of its revenue, about $70 billion, if the a la carte was widely adopted. She added that only 20 channels would likely survive.

 

Time Warner Cable said CBS could choose the pricing it wants for a la carte channels and then collect all the revenue.

 

BTIG analyst Rich Greenfield said that "a la carte is never going to happen" and that Time Warner Cable is just trying to show the public "CBS is unwilling to negotiate."

 

Time Warner Cable offered to increase its fees it would to pay to CBS but it did not elaborate on the specifics in the letter. A Time Warner Cable spokeswoman decline to comment on the amount.

 

RBC Capital Markets analyst David Bank estimates that CBS currently receives $1 per month, per subscriber and is seeking to double that to $2 per subscriber.

 

The latest proposal from Time Warner Cable would not include a deal for digital rights, which it said CBS had provided to other cable companies. Those rights include CBS's premium channel Showtime's digital app, which competes with HBO GO, said a source familiar with the matter said the proposal.


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#24 OFFLINE   inkahauts

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Posted 05 August 2013 - 02:57 PM

Again we don't pay for any Of their online content. Our subscription only guarantees us their linear Channels. Any online content is a free extra.

You'd know if we where paying for it because we'd see line items for it and people with it would be paying more than people who have no internet access and can't access it.

#25 OFFLINE   inkahauts

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Posted 05 August 2013 - 03:03 PM

Since when does a company like Dish have say over a broadcast station offering content to Netflix. Maybe CBS was actually right on this one. I dont agree with a huge increase but I also don't like the idea of Dish stating you can't offer your content on Netflix. If Dish wants part of that business too then maybe they should do a better job offering better internet people want to get paid on both ends.


Actually all the time. Many contracts prices are in part derived from the exclusivity of the content on the channel. If CBS gives all their stuff to Netflix for free that highly devalues its worth for Time Warner Cable and others. They can absolutely ask for guarantees of that kind to protect the value of what they are paying for.




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