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> CBS Involved In Huge Retransmission Fee Dispute With TWC, Could Effect Boxing Relations With Showtime Promoters
Jack 1000
post Jul 21 2013, 04:31 PM
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Hey All,

In addition to boxing, for years I have helped friends and customers with cable, dish and other third party TV venders. Some background. Approximately every three to five years, cable, dish, and U-Verse negotiate for retransmission of their signals with the station owners. In 1992 the federal government passed cable regulation, which allowed over the air broadcasters the right to charge cable and Dish carriage for their programing. Previous legislation allowed for standard cable services to be "Must Carry." Stations now have a choice of "Must Carry" or "Retransmission Consent." Due to the economy, and loss of major commercial advertising being replaced with infomercials for the last ten years, stations every three to five years demand rate increases from ALL third party cable/dish providers as the two sides work toward an agreement to keep ther signals on the air.


There are two sides to the argument. Station owners say they have to raise rates due to inflation and the cost of programing content. The cable, dish, and U-Verse companies say that they have to negotiate reasonable deals to keep cost down as more and more people turn to third party TV cord cutting. The big dispute ("Internet search TWC CBS carriage dispute for more information.) is going on right now. In three major cities, LA, New York, and Dallas, CBS is demanding according to TWC a 600% rate increase for their programing. CBS counters that the fee increase amounts to pennies a day. ONLY LOCAL CBS PROGRAMING IN THOSE CITES WOULD BE AFFECTED. LOCAL STATIONS WITH CBS NON-NATIONAL CONTENT WOULD NOT BE EFFECTED. BUT FOR BOXING, IT IS IMPORTANT TO UNDERSTAND THAT FOR TWC SUBS IN THIS DISPUTE, SHOWTIME (OWNED BY CBS) MAY BE PULLED IF THE TWO PARTIES CANNOT COME TO AN AGREEMENT BY JULY 24TH.

The problem is that switching providers does not help long-term because every provider has faced these issues of retransmission consent in the past. About 95% of the time, there are hundreds of retransmission consent contracts that are done all the time without the customer knowing about them. Dish Network has been forced to drop many channels due to retransmission consent. I believe, but am not sure that Direct TV for a time lost Verses. I don't know if this is still true or not. Cablevision of New York last year, lost several stations for a while due to a retransmission fee dispute.

This is just a heads up that Showtime could be lost for about 14 million subscribers, (Not just the effected markets) for next week's Berto-Kasses fight, if an agreement or extension is not reached! How much of a negative impact will this have with Showtime Promoted Companies, such as Mayweather Productions, and Golden Boy Promotions, if this dispute is long-term? How long do you believe the stand-off will last?

Jack
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Jack 1000
post Jul 25 2013, 12:59 PM
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Talks have been extended to Monday at 5PM(EST):

http://www.cnbc.com/id/100913329

Jack
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