CBS, Time Warner Negotiations Stall As Blackout Continues

Time Warner Cable

Negotiations between CBS and Time Warner Cable have reportedly stalled as the blackout in New York, Los Angeles, and Dallas heads into the second week.

Although the companies are apparently speaking to one another again, very little progress has been made. CBS executive vice president Martin Franks told a New York City council committee that talks had resumed. However, neither party is willing to back down.

Transmission fees were at the heart of the original dispute. However, it would appear that CBS and Time Warner are now butting heads over what to do about online streaming services such as Netflix and Hulu.

According to the broadcaster, the cable provider wants to limit how much content the network can provide to these platforms. A CBS representative said Time Warner is interested in securing the same deal that was struck back in 2008. Since times have changed since then, the network isn’t pleased with these demands.

“Perhaps their real aim here is to use those outdated terms to hamstring our ability to do business with Netflix, Amazon, Hulu Plus and other new entrants that pose a new competitive threat to their former, cozy, unchallenged monopoly status,” Franks explained.

Time Warner Cable, meanwhile, has vehemently denied allegations that it is trying to prevent CBS from doing business with the competition.

The cable provider said in a statement:

We categorically deny that we are trying to keep CBS from doing business with any new entrant. Both our expired and proposed agreements with CBS place no restriction on their ability to sell all of their product to Netflix, Amazon, Intel or any other entity, or continue to give all of their best content away for free online, as they have to date.

Unfortunately for subscribers in these affected areas, it’s unclear when the CBS networks will return. However, analysts are almost certain that things will return to normal before football season kicks off.

What do you think about the problems between CBS and Time Warner Cable? Do you believe that both parties are being unreasonable?

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