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Full Version: CBS Involved In Huge Retransmission Fee Dispute With TWC
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Jack 1000
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
klonopinz
no way in hell this shit lasts very long, no longer than one billing cycle i dont think, because customers pay for programming, and their will be lawsuits if it isnt settled immediately. i dont think it would ever actually come to taking programs like showtime off permanently in the two biggest cities in america, and one of the biigest in the world, NY. sounds like somebody just wants more money
Jack 1000
Talks have been extended to Monday at 5PM(EST):

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

Jack
Jack 1000
Upate: August 2, 2013

Negotiations have failed CBS national feeds are off in Dallas, Los Angeles, New York, Chicago, and Denver. Local owned CBS stations on the TWC footprint and not adffected.

However, Showtime/TMC, are off of all TWC system nationwide. The issue is over retransmission fees in how much should TWC pay for na new contract. TWC says CBS and it's networks are seeking a 600% rate increase for their programing in these areas, above what TWC normally pays CBS in other markets. CBS says as the #1 commercial network, it expects a reasonable rate increase for the popularity of its programing content.

Insiders say CBS currently pays TWC about eighty eight cents a month per subscriber and wants to charge about $2.00 a month for it's content. Sources also say that ESPN and all it's sister stations and On Demand Content is the most expensive at about $3.50 per month. Sports programming is the most costly to purchase and maintain. Other stations are about $25 cents a month or less.

Hopefully the Showtime blackout won't last too long, so that its subs won't miss the boxing shows.

Jack
bnoles4life
QUOTE (Jack 1000 @ Aug 2 2013, 05:48 PM) *
Upate: August 2, 2013

Negotiations have failed CBS national feeds are off in Dallas, Los Angeles, New York, Chicago, and Denver. Local owned CBS stations on the TWC footprint and not adffected.

However, Showtime/TMC, are off of all TWC system nationwide. The issue is over retransmission fees in how much should TWC pay for na new contract. TWC says CBS and it's networks are seeking a 600% rate increase for their programing in these areas, above what TWC normally pays CBS in other markets. CBS says as the #1 commercial network, it expects a reasonable rate increase for the popularity of its programing content.

Insiders say CBS currently pays TWC about eighty eight cents a month per subscriber and wants to charge about $2.00 a month for it's content. Sources also say that ESPN and all it's sister stations and On Demand Content is the most expensive at about $3.50 per month. Sports programming is the most costly to purchase and maintain. Other stations are about 25 cents a month or less.

Hopefully the Showtime blackout won't last too long, so that its subs won't miss the boxing shows.

Jack



Yep, my Showtime is gone like a muuuuuug!!!! I'm really pissed cuz that Ray Donovan joint is fiiiiiiiiyaaaaaaaaaaaaahhhhh!!!!!
Jack 1000
QUOTE (Jack 1000 @ Aug 2 2013, 04:48 PM) *
Upate: August 2, 2013

Negotiations have failed CBS national feeds are off in Dallas, Los Angeles, New York, Chicago, and Denver. Local owned CBS stations on the TWC footprint and not adffected.

However, Showtime/TMC, are off of all TWC system nationwide. The issue is over retransmission fees in how much should TWC pay for na new contract. TWC says CBS and it's networks are seeking a 600% rate increase for their programing in these areas, above what TWC normally pays CBS in other markets. CBS says as the #1 commercial network, it expects a reasonable rate increase for the popularity of its programing content.

Insiders say CBS currently pays TWC about eighty eight cents a month per subscriber and wants to charge about $2.00 a month for it's content. Sources also say that ESPN and all it's sister stations and On Demand Content is the most expensive at about $3.50 per month. Sports programming is the most costly to purchase and maintain. Other stations are about 25 cents a month or less.

Hopefully the Showtime blackout won't last too long, so that its subs won't miss the boxing shows.

Jack


I give this at most a month, maybe even less than a week before resolution. There is too much revenue lost on both sides by not having the stations. With the Fall Season approaching, the pressure will be high to get this resolved quickly! Showtime's loss of revenue affects between 11 million to 13 million subs according to several sources. The whole situation is ridiculous and is reminiscent of two little kids (CBS vs. Time Warner) fighting in a sandbox over a toy.

FUCKING GREED!

Jack

MaxPayne
It's unbelievable that these 2 companies have let it get this far, considering the sheer amount of revenue that is there on the table.

These corporate pissing matches, let me tell you...I want to slap all of those dumbasses upside the head.
Col Reb
I wish the ESPNs, HBOs, and Showtimes of the world would give us the option to subscribe to them a la carte online (HBO Go, WatchESPN, etc). This would allow those of us off the grid to get the subscriptions. I'd gladly pay just for that; similar to the way iTunes works with buying individual songs.
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