Time Warner blackout of CBS goes into 2nd day

[Omaha Steve]

Source: AP-Excite

By TOM KRISHER

Time Warner Cable's blackout of CBS continued Saturday, and neither side indicated a resolution of their dispute over fees is imminent.

Time Warner dropped CBS Friday in New York, Los Angeles, Dallas and several other cities, leaving three million customers without the network's programs. The issue is fees that the cable company pays CBS to air its programs.

Each has accused the other of making unreasonable demands. On Saturday the two sides even seemed to disagree on the status of negotiations. A Time Warner spokeswoman said Saturday afternoon that negotiations are ongoing. CBS said it expects talks to resume soon, but the decision rests with Time Warner.

Without a deal, Time Warner customers were missing Tiger Woods' attempt at his 8th win at Firestone Country Club near Akron, Ohio, in this weekend's Bridgestone Invitational. Woods held a lead of 7 strokes as he played Saturday. CBS fans also won't see programs such as "Under the Dome" or "60 Minutes."

FULL story at link.


Read more: http://apnews.excite.com/article/20130803/DA7UMMCO1.html

---

This image provided by CBS shows a CBS advertisement in Times Square in New York on Friday, Aug. 2, 2013. Three million Time Warner Cable customers in New York, Los Angeles and Dallas lost access to CBS programming in a fee dispute Friday, threatening their ability to watch popular shows like "Under the Dome" or see Tiger Woods pursue his 8th win at the Bridgestone Invitational. The nation's second largest cable operator said that CBS refused to have productive negotiations, which were repeatedly extended after their previous deal expired at the end of June. (AP Photo/CBS)

[msongs]

1. sounds like win win eh :-) nt

[House of Roberts]

2. People will find out they can do without cable providing local TV.

They may obtain over-the-air equipment to restore the access to local channels.
Then they will find they can access most of the rest of what they want online, and only use the cable for internet. Bye-bye bundle!

[tofuandbeer]

3. I'm going to be doing this.

[justice1]

54. You might be surprised at how many programs are available to you.

One of the best purchases I have made is a Samsung Smart tv. I bought mine for over 55%, because they came out with a newer model. On their website they often have models for 40% off retail, and they have excellent customer service. It gives me access to the newest apps such as Redbox, which has a lot of older movies that you might find on Turner classic, up until the 80's, as well as 4 rentals a month, that I can use for more movies, or video games for my daughter.

I also have Hulu, for shows on Comedy Central and Nickelodeon, and I don't have to record because it's on demand. Then I have Netflix for newer movies, and series like Breaking Bad. There are also free movie channels such as Crackle.

My friend made me a simple outdoor antenna that he learned to make off of Youtube. In total, I pay about $25 a month, and it's plenty of entertainment for us.

I have never used Amazon Prime, but that could be another option at $79 a year.

[tofuandbeer]

55. Wow! Thanks so much!

The only part I don't like is Hulu: I signed up with that, and they still run ads when you pay. I'll probably go with Green Cene (sp?) or Netflix. Thanks again! This will save a bundle!

[justice1]

60. You are welcome

Oddly enough if you watch Hulu for free on your computer, you actually have access to more content, due to licensing agreements.

Roku, was created by Netflix and has many free apps, and the best player is under a $100.

HBO is going to start streaming to Scandinavian countries this fall, for about $10.50 a month. I am not sure if it will be a condensed version of their current offerings, but even if it is, it would be nice to have it introduced here.

[JI7]

11. and maybe networks will invest in quality tv shows rather than reality crap and stupid talk shows

[tofuandbeer]

4. A shot of the TWC notice (KCAL9...Los Angeles, channel 9)

I watch KCAL9. They are pretty good with local news, and interrupt programming with the smallest of Southern California events—which is cool with me.

I don't completely understand the standoff here, but my first inclination is to go with KCAL. I do, however, understand TWC's stance—if they raise the pay for KCAL, then every other station will want the same.

I'm sure there's more to it than that, but that's the way I understand it.

[sweetloukillbot]

6. I don't know the exact nature - but the Cable company I work for went thru this with AMC

In our case - AMC was asking for a 500% rate increase for their station, plus a handful of smaller stations they had bundled w/ AMC. This cost would be passed on to the consumers and we balked at raising the rate. They retaliated by cutting the feed to Walking Dead one Sunday, running a crawl saying we were taking away the program.
During the negotiations, we offered to move it to our premium tier if they wanted more money - they refused. We asked to drop some of the other bundled channels (Which are the ones that always seem to come up in discussions about people paying too much for stations they dont want) AMC refused. They asked us to bundle other channels no one was interested in - we refused.
We actually ended up working out a compromise - I think some channels were moved to premium and the rate increased was cut in half - which is probably fair - AMC does have the hottest shows on TV right now, and the contract that was up for renewal dated from before Mad Men and Breaking Bad.
A couple years before we had an issue with customers in rural Oklahoma who liked the OKC networks over the Tulsa networks, but Fox refused rebroadcast of the more popular stations in favor of the smaller ones. Our choice was accept the less popular local affiliate, or lose the rights altogether. That also caused a stir from customers. Similar situation happened with NOLA stations broadcasting to southern Mississippi.
There are issues with Big Ten TV and other NCAA networks as well.
Going to satellite won't fix the problem either - the networks are doing the same thing to satellite viewers as well.
I can't speak to Time Warner's place as an upstanding business - in fact I don't think too highly of them at all - but rate increases do have to be paid for - and people who complain about outrageous cable TV prices - this is one of the reasons for your bill going up.

[tofuandbeer]

44. +1

[JI7]

10. i didn't know KCAL was owned by CBS

[Safetykitten]

5. What will we do? No crime shows, or...crime shows...or the crime shows....

or crime shows where perky computer peeps explain things to detectives standing behind them?

[KurtNYC]

12. or boring golf

[East Coast Pirate]

13. Lawyers and doctors and cops

who don't act like lawyers and doctors and cops.

[Baitball Blogger]

18. So true.

[Auggie]

7. I expect TW and CBS will merge one day

[reformist2]

8. Oh noes... we won't be able to watch "Under the Dome"!!!1!!!

[JI7]

9. i guess i never watch CBS

i tuned in just now just to see what they would be showing.

[tsuki]

14. Cable is old technology. But I'm a dinosaur, so I get my TV

over the air, 16 channels. Add a roku box, add netflix, and I have more TV than I can handle. I find myself using Pandora when I am canning or cleaning. All in all, I have all the TV I want plus a low monthly bill.

Of the four boys that grew up at our house, only one has cable.

[yends21012]

15. same here

I broke my cable connection a little over a year ago and have not missed it at all. I have an antenna, roku, netflix, and occasionally use youtube and iTunes and have more TV and videos than I have time to watch. Most of the time, I just shut it all down and read or go for a walk.

[Sunlei]

16. Cable should not be allowed to 'blackout' any network without lowering the sub. price by half.

'chain' cable to their subscription price- and they will stop playing the 'knock out the media' games with each other.

[christx30]

20. So what would you do

if you were TWC? CBS decides to up their rebroadcast fees for something customers can get elsewhere for free? Especially if they weren't offering anything extra in return.
If your cable bill quadrupled overnight, you'd cut it off until you got a better deal.

[Sunlei]

22. a subscription service should be required to provide what customers are paying for.

Infighting in the business should not be taken out on their consumers, without a price cut or refund to subscription price.

[christx30]

25. The fact is that CBS

Is the bad guy here. Nearly half (47%) of your cable bill goes to pay for rebroadcasting rights. The rest goes for equipment, power, maintenance, and to pay everyone to keep it all running. TWC is not a charity. It's a business. It has to turn a profit, or it dies. So when CBS decides to jack up their rebroadcast fees, we either jack up your cable bill, or we push back at CBS. In this case, obviously, we decided to push back. If we gave into all of the networks that wanted price hikes every time, your bill would go up by $50 a month.
Nearly all of CBS's shows are available elsewhere. Online, on antenna, or elsewhere within standard or digital cable. For example, Two & a half men is available on FX.

[Sunlei]

26. so CBS blacked themself out of cable broadcast?

I don't care if CBS is free through other venues.

The cable business should cut their price then if they lower the number of 'shows' customers are paying for. The consumer comes first.

[christx30]

28. As a matter of fact,

CBS did black themselves out. When the contract expired, TWC had to pull them, by law. They did not have the right to broadcast from their local CBS affiliate without a working contract in place.
And as far as alternates to CBS, the point I as making is that all of these things are available elsewhere. Many of those places are on TWC's dial. So people aren't actually missing anything.
But, again, from a business standpoint, CBS wants TWC to pay 600% more for the same programming and sports than it pays in other areas for the same programming that is available for free elsewhere. It's like me asking someone to pay $400 for my copy of the phone book, which they can find 3 blocks down the road in someone else's driveway. But the costs would be passed onto the customer. TWC is trying to mitigate that in the long term.
The alternative is that TWC gives in, they raise their rates as a response, and everyone complains that their cable bill has gone up again.

[Sunlei]

31. so then cable is crap out of luck. They knew the contract was to expire, cut the price.

[christx30]

39. The contract was about to expire

so they asked CBS how much they wanted to renew the contract. CBS wanted way too much money. TWC is balking at the price hike. Should TWC just pay the added cost and pass the price increase to their customers? Would you do that?

[Sunlei]

40. looks like TWC will lose a lot of customers, so what. except they owe plenty of customers refunds.

[christx30]

41. How does TWC

owe refunds to former customers? They pay for a service, which includes over 200 channels, plus On Demand, music choice, sports, ect. One of the channels decided to jack up their rates. If your landlord decided to jack up the rent, you'd demand a better rate, or move out. If the price of Minute Made went up, you'd switch to Tropicana. CBS wants to charge 500% more for CBS in Dallas than other CBS affiliates charge in other cities. And it's way more than TWC wants to pay or their customers want to pay. So CBS had to be removed from the dial while the lawyers hammer out a deal. CBS is clearly in the wrong here. If they come down, TWC would gladly sign back up. I don't see the problem with that. Especially since no one needs to use TWC to get CBS shows. That stuff is available elsewhere for free. And CBS shows are available elsewhere withing standard and digital cable. So they can still get their shows, it just takes a little hunting around.

[Sunlei]

42. how many current customers pay for cable that includes CBS. How many cable customers

have cable just for the CBS?

They had a contract. They cable company knows when contracts expire, years in advance. CBS doesn't have to sign a new contract.

TWC will have to lower their rates for the future and refund consumers who paid for CBS and didn't get it.

[christx30]

43. TWC isn't selling anything to CBS

CBS is selling to TWC, and they want to charge too much for what they are selling. TWC is trying to talk them down. CBS pulled programming from TWC while the negotiations are underway. It's that simple.

[Corgigal]

46. I also think you're correct

This is CBS's fault. I don't have my Showtime tonight, and this being the final season of Dexter (which I never missed) is annoying me. Cable TV knows what will happen if they force the bills to go even higher. They will lose even more customers. I already pay for Showtime (and HBO) and CBS needs to find a way to allow me to watch it.

I'm not angry at Time Warner , I get it.

[dsc]

47. they damn well do owe me for showtime which I pay for separately

and which has been blocked as part of this.

[christx30]

48. You'll get a credit

Retroactive to when this started, friday 8/02 at 5pm edt. Other than that, what should TWC do? Just start paying the higher rate, and raise prices?

[dsc]

49. a warning would have been nice

I didn't lose CBS since apparently my local affiliate isn't owned by CBS but losing Showtime as a Dexter fan is annoying.

[christx30]

50. I first heard about it last Wednesday

When the contract expired and no deal had been struck. They extended the contract until close of business on Friday to make the biggest impact on people's services over the weekend. I know CBS has been running ads for over a week telling people to call TWC I can only assume Showtime was doing that too. But what good would warning have done, really? "You're going to lose Showtime on Friday at 5 EDT." But this isn't going to last forever. The babies on both sides will get their bottles and take a nappy nap, and they will reach a deal. Then Dexter will be available On Demand, so you'll be able to see it whenever you want. It's not ideal, but it is what it is.

[Baitball Blogger]

17. Am I the only one that hopes that Time Warner loses?

Considering that one of their local attorneys pitched his professional ethics out the window in order to push them through the county, and that they have a monopoly in the cable industry around here, I think a little push back is warranted.

[branford]

23. Are you willing to cut your nose to spite your face?

I live in NYC and subscribe to TWC. Although I'm not generally a fan of cable companies for a number of reasons, I stand firmly behind Time Warner in this matter.

If CBS, a free over-the-air network with programming that is legally and easily accessible online, can demand a 600% increase in their carriage fees, other networks, as well as basic cable and premium provides, will look for similar rate increases. These costs will inevitably lead to substantially increased cable customer subscription costs without a commiserate increase in cable services or improvements in programming.

Also note that TWC, at least in NYC, is not a monopoly. As a resident of midtown Manhattan, I know that RCN and Fios are also available in most locations.

[Baitball Blogger]

29. I don't live in NYC.

I live in a small community which is easily controlled by a good ole boy network.

What makes them weak, will allow for competition of industry and make things easier for newcomers.

That isn't all bad.

[branford]

34. Your raise an interesting point, although I respectfully disagree.

I'm definitely not TWC's biggest fan. If only I had the patience to write about some of my recent experiences . . .

I, too, would like to see far more competition in the industry. However, I do not believe that higher carriage costs will in any way lead to more competition in the cable industry. All providers, big and small, will suffer the increased cost.

Cable prices are determined in large part by the carriage costs of the various networks, including those like CBS which are otherwise free over-the-air and online. If any cable company, regardless of the level of competition in a community, were to give in to such an enormous rate increase, all other networks would make similar demands. Unless CBS (and other channels) is offering me, as the ultimate customer, significantly improved programming and services, I do not want to experience continually rising cable fees. My cable rate is already well past unreasonable, and I assume that you would heartily agree.

I also feel that you and those similarly situated could bear the brunt far more severely than someone like me in a major metropolis. Smaller cable companies and markets have far less negotiating leverage. That is why I assume that CBS chose to first attack Time Warner and set the stage for later negotiations with other providers.

Lastly, normally when choosing between a major media conglomerate like CBS, or an vast component of the cable oligopoly like Time Warner, I hope that I can choose "C," "none of the above."

I wish us both the best of luck. We will need it.

[onenote]

56. Do satellite signals reach your community?

If so, how can you call TWC a "monopoly"? You could get DirecTV or Dish instead. Lots of people do.

Its a strange sort of "monopoly" that went from having 90+ percent of the "pay TV" suscribers in 1993 to having under 55 percent of them in 2012.

CBS, like other broadcasters, is the true monopolist here. Want to watch Person of Interest? Want to watch certain NFL football games? Well, the only way you can is by watching CBS. So, CBS is in a position to play its leverage against the fact that a pay tv company that stands up to CBS' demands runs the risk of losing subscribers. Sure, CBS will lose some advertising revenue, but they will regain viewership either because the blacked out subscribers will switch to a satellite company (or another terrestrial pay tv company if one is available) or get an antenna. But those customers that abandon Time Warner Cable will be gone for good.

If CBS was using the millions (soon to be billions) that they are gouging out of pay tv providers to improve their local programming or even to improve the network programming, it would be one thing. But those payments are simply going back into the pockets of CBS executives and shareholders through massive salaries and divident payments. Programming that traditionally was on broadcast (like the US Open tennis tournament or Monday night football or the NCAA basketball final four) are or will soon be available only on a non-broadcast channel like ESPN or TNT. Broadcasters are scrambling to create the cheapest reality shows to replace more expensive scripted dramas. Yet, as the broadcasters reduce their expenses, do they reduce the amounts they demand from pay tv companies and their subscribers? Nope. According to the president of CBS, when it comes to their demands from pay tv customers, the "sky's the limit."

[hobbit709]

19. If you can't pick up a CBS station in those markets with a simple antenna, you deserve to do without

[totodeinhere]

30. Paying for an installer to put an antenna on your roof can be expensive.

Not everyone can get a signal with an indoor antenna. If you are canceling cable then you can make back the cost of the installation in a couple of months, but if you are keeping cable and putting up an antenna just to get CBS OTA then some people might not be able to afford that.

[hobbit709]

32. In those markets you can use a simple rabbit ear.

I live in deep south Austin and with a $10 rabbit ear antenna I can get 12 channels good enough not to block out on my HDTV.

[totodeinhere]

35. It depends on your exact location. If there is a hill or some other obstruction

between your location and the TV transmitter then an indoor antenna might not work. Where I live I can get 16 OTA channels with an amplified indoor antenna upstairs in my bedroom. But downstairs in my family room I could get only one OTA channel. I had to put up a roof antenna to get the other channels.

[spartan61]

21. This same thing happened to us

last summer in Maine. The same argument then was between Direct TV and CBS. The blackout of CBS lasted more than 3 weeks. I never heard how the problem was resolved. Maybe we should all go back to roof antennas or rabbit ears and let the greedy companies just go out of business.

[Sunlei]

27. haven't had cable in years. placed the $ cable/and cell phone would have cost into stocks.

plenty, more than enough good TV with decent antenna and a computer. That adds up to a lot of $ over 10 years.

[radhika]

24. It's Showtime that I care about.....

Thinking of Direct TV, dumping TWC.

Still miffed they dumped Current TV as soon as Al Jazeera purchased it from Al Gore. Arrogant, petty.

[christx30]

45. Direct TV's statement on TWC Showtime blackout:

EL SEGUNDO, Calif.--(BUSINESS WIRE)-- 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."

[radhika]

57. Yikes! both TWC and CBS are totally odious creeps

[christx30]

58. So what should TWC do?

Just pay the extra money CBS is demanding and raise prices to compensate? Don't forget: Direct TV lost AMC networks for 3 months last year for the same reason.
Besides: CBS is blocking access to their online content to anyone that uses TWC Internet, even if those people are using Dish or Direct for their TV services. That just shows bad faith.

[radhika]

59. I can't solve the pricing problems of media, but...

I specifically objected to the blocking of access to folks using TWC Internet as their ISP, not just TWC cable. Seems they are crossing product lines, and extending their own reach.

I would love to see laws changed to let subscribers go direct to Premium Channels.

[liberal N proud]

36. Watching Farce the Nation right now on TWC

[totodeinhere]

37. DIRECTV Applauds Time Warner Cable For Fighting Back In Dispute with CBS

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.

http://investor.directv.com/releaseDetail.cfm?ReleaseID=782602

[hunter]

38. I ask the cable and satelite TV companies "How much?" when they call.

They give me their prices, and then I say "Fine, you can hook me up when your first check clears the bank."

Seriously, you'd have to pay me to deal with any of that stuff.

We do have a television, a DVD player, and a VCR so we can occasionally watch movies.

Any time I might have spent watching television I spend reading. I like ordinary paper books (we have hundreds, maybe thousands of them) and my Kobo ebook is a miracle. Occasionally I purchase books online but mostly I find things at gutenberg.org and other free book sites.

[elfin]

51. Don't care about CBS, but do care about Homeland on Showtime

starts up Sept. 29. Should be back by then, along with a whopper increase from TW.

Not ready to cut the cord - options appear to be satellite or ATT Uverse.

[giftedgirl77]

52. We are in the same boat with Dish,

Fox has been blocked since the first.

[cstanleytech]

53. I am partly siding with TW on this. Why should they pay extra for

rebroadcasting a "free" channel to people in the area.
IMO a solution though is simple, tell cable and satellite providers that they dont have to carry the channels but they must provide a free way for people to receive the broadcast signals and not block or use that local channels number either.