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Time Warner Vs. CBS

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Time Warner Vs. CBS, Celebrities speak at the CBS, Showtime and The CW portion of the 2013 Summer Television Critics Association on July 30, 2013 in Beverly Hills, California. Time Warner Cable has threatened to cut popular CBS content from its network as CBS wants more money for transmission rights. A careful look at each companies numbers shows that neither has to remain firm in its position.

CBS almost went dark for 3.5 million people July 29, 2013. Time Warner Cable (TWC) threatened to stop providing viewers with the network’s content because CBS wanted TWC to pay more for that content, much more.

While nobody outside of TWC and CBS knows the exact figures, a careful look at the company’s quarterly report shows that the amount pales before each company’s revenues. But CBS has more to lose, and it says so in its own reports.

After negotiating day and night on Monday, TWC decided to extend the deadline before it takes CBS off-air until Friday, August 2, 2013. According to TWC, CBS had asked for a 600 percent raise in so-called retransmission fees, money cable providers pay networks to supply their content to cable customers.

CBS have denied these figures and the New York Times cites an insider who said CBS was demanding 20 to 25 percent.

If there is no resolution, TWC customers might soon have to live without shows like “Big Brother,” “Homeland” and “Under the Dome,” which are very popular over the summer. Later, they’ll have to give up watching N.F.L., which CBS covers exclusively. TWC said the demands were too high and it would have to pass on the increase to cable customers.

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