UPDATE: The two companies have extended their deadline to 5 p.m. ET Friday (Aug. 2). CBS and its sister channels will remain on Time Warner systems in the meantime.
CBS and Time Warner Cable failed to reach a deal on subscriber fees Monday night (July 29), but as of this post the network and its sister cable channels were still on the cable system.
The two companies have been fighting for weeks about an increase in the fee Time Warner would pay CBS per subscriber. The network was reportedly asking for $2 per subscriber, about double what it currently gets. TWC was refusing to budge, saying the increase would be passed on to customers and that it was out of line with what other broadcast networks receive.
If they don’t come to an agreement, about 3.5 million customers in New York, Dallas and Los Angeles could lose CBS.
Shortly after the deadline passed at midnight ET, Time Warner issued a harshly worded statement: “The outrageous demands for fees by CBS Corporation have forced Time Warner Cable to remove several of its networks and broadcast stations from our customers’ lineups,” the statement says.
“As of midnight ET, Time Warner Cable customers in New York City, Dallas and Los Angeles will no longer receive their local CBS broadcast stations. In addition, we have been forced to remove Showtime, TMC, Flix and Smithsonian from our lineups across the country. We offered to pay reasonable increases, but CBS’s demands are out of line and unfair.”
CBS responded by accusing TWC of “engag[ing] in a public campaign of disinformation and voodoo mathematics (featuring wildly inflated percentages) while doggedly restating their positions. Time Warner Cable seems incapable of accepting the concept that the value of a company’s programming should be in line with its popularity.”
Shortly after the dueling statements, though, Time Warner said it had delayed pulling CBS, Showtime and the other channels from its lineups. That’s a sign that talks could continue into Tuesday. As of this post, CBS was still airing on Time Warner in Los Angeles, along with all the cable channels.