In a display of its negotiation power, Time Warner Cable blacked out CBS stations in several cities on Friday after the two companies failed to agree to terms over transmission fees by the 5 p.m. deadline. Los Angeles, Dallas, Boston, Chicago, Denver, Detroit, and Pittsburgh saw the network drop for the first time in CBS’s history, affecting around 3 million customers.
Customers nationwide also lost access to other premium channels owned by CBS, including Showtime, The Smithsonian Channel, and The Movie Channel.
He Said, She Said
CBS and Time Warner both reached out to customers to present their side of the case to help prevent any negative public opinion. CBS was the first to respond to the blackout:
“”We deeply regret this ill-advised action, which is injurious not only to our many affected viewers, but also to Time Warner Cable itself. Throughout this process, Time Warner Cable has conducted negotiations in a combative and non-productive spirit, indulging in pointless brinksmanship and distorted public positioning…”
But Time Warner was quick to fire back:
“CBS has made outrageous demands for the programming that it delivers free over the air and online, requiring us to remove their stations from your lineup while we continue to negotiate for fair and reasonable terms,”
Contract disputes aren’t new, but actually pulling the plug is. Whatever the resolution, the actions during this disagreement will likely be remembered during future Station v Provider negotiations.