Cbs Eye Is Now Wide Open On Time Warner Cable

CBS programming returned to Time Warner Cable systems at 6:00 p.m. Monday night for the first time since a carriage dispute blacked out the network on Aug. 2. The wrangle had prevented CBS programming from being viewed by 3 million TWC subscribers, principally in New York, Los Angeles and Dallas. Terms of the agreement were not disclosed, but each side claimed victory. In a memo to staff, CBS chief Les Moonves claimed that the new deal would deliver to us all the value and terms that we sought, while TWC chief Glenn Britt said that the cable provider ended up in a much better place than when we started. Most analysts, however, concluded that it had not. CBS is the winner. Content owners always win these negotiations, it's just a matter of how much they won, Moffett Research analyst Craig Moffett told Reuters. They have all the leverage. Consumers don't get mad and trade in their channel when these fights drag on. They go looking for a different satellite or telephone company. Similarly, David Bank, a media analyst for RBC Capital Markets told the New York Times, With the content, especially the N.F.L. and CBS being the No. 1 network in the ratings, you just have to believe they are going to win every time. Morningstar analyst Michael Corty predicted that the deal will narrow TWC's margins unless the cable provider is able to expand its Internet service substantially.


Tags: CBS - Dallas - Les Moonves - The New York Times - The Deal


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