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

10K views 91 replies 21 participants last post by  jsmeeker 
#1 ·
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.
 
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#77 ·
If many of them give CBS closer to what CBS wants and TimeWarner flat out refuses and continues to not carry CBS, what does that say about CBS?
cbs would not have entered into this without planning for different outcomes and having several alternatives, including twc walking away.

cbs looked at the timing (fall, football, showtime), and decided it was the right time to play hardball with twc, knowing there would be resistance. it all boils down to who blinks first.

eta:
For NBC, not all NBC stations are O&O.
nbc owns stations in new york, la, san diego, san jose, chicago, miami, dc, philly, dfw, etc. would comcast black out basic cable offerings during negotiations in those cities?
 
#78 ·
Why cant TWC just give CBS what they are asking for, and put it on cable as a premium channel...i.e. you want CBS, that will be $5 a month more...
This will set a precedent.

"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."
 
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