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Time Warner/CBS battle could set pattern for future retrans deals Read more: Time Wa

Discussion in 'TiVo Coffee House - TiVo Discussion' started by Johncv, Aug 26, 2013.

  1. Johncv

    Johncv Active Member

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    This could be bad news, can't believe I am supporting Time-Warner.

    http://www.fiercecable.com/story/time-warnercbs-battle-could-set-pattern-future-retrans-deals/2013-08-26?utm_medium=nl&utm_source=internal
    Time Warner Cable's (NYSE: TWC) current standoff with CBS (NYSE: CBS) over retransmission fees is being closely watched by other TV distributors such as NBC, ABC and Fox and could ultimately set the standard for future negotiations.

    Typically retransmission negotiations focus on small fee increases, but CBS has asked for a big increase to make up for what it considers a historic injustice in terms of what cable and satellite providers pay for their content. According to SNL Kagan as reported by Hollywood Reporter, CBS wants to leap from 66 cents per subscriber per month to $2 per subscriber per month.

    According to SNL Kagan analyst Justin Nelson, any time one of the larger networks such as CBS sets a new standard in terms of pricing, it's likely the rest will follow. CBS is considered a trailblazer in this area, and the company is saying it delivers much more in terms of programming and viewership and believes it should be paid market rates.

    SNL Kagan also noted that in 2011, total broadcast retransmission fees were only $1.76 billion, while cable channels were paid around $27 billion that same year.
     
  2. tomhorsley

    tomhorsley Active Member

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    I keep hoping the day will come when there are no TV networks at all, and everything is VOD directly from the producers. All we need is a seismic shift in advertising so the advertisers give credits directly to the viewers for watching their interactive ads, then the viewers can spend the VOD credits on whatever shows they want to watch.

    Perhaps this could happen after we rebuild in the post-apocalyptic world someday :).
     
  3. BrettStah

    BrettStah Well-Known Member TCF Club

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    Broadcast networks shouldn't be able to demand to be paid as long as the cable or satellite company is simply re-broadcasting the OTA signal to the same geographic area the OTA reaches, IMHO.
     
  4. unitron

    unitron Active Member

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    The historic injustice is that the broadcasters use the public airwaves essentially for free to transmit a signal you can receive for free if you handle the antenna part yourself, but if you subcontract out that part (giving the station a larger viewership to sell to advertisers), all of a sudden they think they're bleeping HBO or something and should get paid for that otherwise free signal.

    Remember, the original law the broadcasters tried to get passed was nicknamed "must carry, must pay".
     
  5. jsmeeker

    jsmeeker Notable Member TCF Club

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    Damn!!


    I this is annoying.. Can't TiVo the MTV VMAs because of this. :(
     
  6. Davisadm

    Davisadm TiVo is awesome!!!!!

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    I agree, I support TWC in this case. Probably the first time I've ever supported TWC! I do not get CBS, they get paid by their advertisers, AND they get paid by rebroadcasters (cable & satellite)?? Isn't that double dipping? CBS is a national OTA network, shouldn't their income be from advertisers only?
     
  7. jsmeeker

    jsmeeker Notable Member TCF Club

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    I support neither. They are both equally to blame. F U Time Warner for yanking my CBS and F U CBS for not dealing with TimeWarner.


    Dunno why CBS should be different than ABC, NBC, and FOX. They all charge to be re-transmitted too.
     
  8. mattack

    mattack Active Member

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    But don't the cable companies ALSO replace part of the ads? (Nowadays -- I'm not saying it's always been that way.)
     
  9. unitron

    unitron Active Member

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    There are local avails in the cable channels, like TNT and USA and CNN, etc., where the cable company puts an ad for themselves or one that they've sold locally, like for a car dealership, but if you see an ad for your cable company on a broadcast station they're "re-transmitting", it's very likely that the cable company bought time on the station (or worked a trade out or some other deal), and that the ad was in the station's OTA signal as well.

    Which only makes sense, as you'd want to advertise cable service towards those watching OTA and *not* yet subscribing to cable.
     
  10. NorthAlabama

    NorthAlabama tabasco rules

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    my guess is cbs strategically planned this fight, with the intention of riding it out through the start of the fall season, when things would get really hairy for a twc blackout.

    i've posted this 2009 fee breakdown before:

    [​IMG]

    cbs's objective appears quite aggressive. when comparing network vs cable viewers for the top shows (non-sports, non-news), the networks win.

    this will settle, and neither side will be happy.
     

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  11. marrone

    marrone Phased Member

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    I definitely support Time Warner.
    Especially since I'm cord free :).
    (It wouldn't have affected me anyway).

    CBS is just plainly being greedy. Unfortunately, all most people will see is that they can't get it on their cable network, so they are going to yell at Time Warner for being cheap (they'll not realize that their bill will go up to compensate).

    I wonder how much they are losing on advertising revenues in those affected markets.

    -Mike
     
  12. NYHeel

    NYHeel Active Member

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    If TWC or any other cable company was not allowed to retransmit broadcast networks then they would lose many customers. The cable companies make a lot of money by transmitting the local networks. Just look at the customers paying $10-$20 for lifeline style plans which basically just include local channels. CBS and the other networks should be allowed to negotiate a fair rate to allow TWC to retransmit their network. The fact that customers could get it for free if they had an antenna doesn't change that fact.
     
  13. BrettStah

    BrettStah Well-Known Member TCF Club

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    If cable companies didn't retransmit broadcast networks, the broadcast networks would have fewer viewers.
     
  14. MeInDallas

    MeInDallas Member

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    Definately on TWC's side on this one. I have TWC and I'm in Dallas where CBS is blacked out. I dont have Showtime anymore, and was going to pick it up when Homeland comes back on, but if I have to do without it, thats fine I'll live. I'm sick of cable giving in to this and in the end I'm the one that pays. I hope they hold the line and continue to say no to CBS demands. They need to be the first one who never gives in. If no one ever does then these practices will never change.
     
  15. Johncv

    Johncv Active Member

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    My brother say TWC should make two offer to CBS:

    1. We will pay $2.00 per customer, but we will remove ALL commercials from your feed.

    2. We will pay 0 per customer and you can keep the commercials.
     
  16. Dan203

    Dan203 Super Moderator Staff Member TCF Club

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    Maybe TWC should take the Aero approach and just setup an array of tiny antennas and use one for each customer. Then they wouldn't be rebroadcasting and could pay CBS nothing.
     
  17. jsmeeker

    jsmeeker Notable Member TCF Club

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    why would CBS take that deal when TimeWarner is paying other networks AND airing their commercials?
     
  18. jsmeeker

    jsmeeker Notable Member TCF Club

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    How do I then get my CBS?
     
  19. MeInDallas

    MeInDallas Member

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    You can always join the free Aereo beta that is about to begin here in Dallas :D
     
  20. jsmeeker

    jsmeeker Notable Member TCF Club

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    That doesn't get me CBS on my TV
     

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