Time Warner Cable: Still No Credits for Loss of CBS Stations

Time Warner Cable Blackout

Cable operator says it will issue credits to Showtime subscribers affected by blackout

Time Warner Cable reiterated that it will not issue credits to 3 million-plus customers related to the blackout of CBS stations in New York, L.A. and Dallas — which is now in Day 11 — while it will credit Showtime subscribers who have lost the network.

A report Monday by the L.A. Times said Time Warner Cable had offered a $4 credit to affected subscribers for the first week of the blackout for the loss of CBS, Showtime and other cablers.

But according to the cable company, the CBS stations in those markets are part of TW Cable’s basic programming package. The “pieces of that package change from time to time — sometimes we add channels, and sometimes we drop them,” according to rep for the cable company. “We do not make it a policy to credit customers for any individual channel change, because the whole package continues to provide value.”

SEE ALSO: Time Warner Cable Taking Bigger Hit Than CBS in PR War Over Blackout: Survey

Time Warner Cable customers who subscribe to Showtime and The Movie Channel — also affected by the companies’ dispute over retransmission fees and terms — will receive a credit retroactive to the first day of the blackout.

While the blackout is in effect, Time Warner Cable is providing alternative programming from Starz to Showtime customers, the MSO said.

SEE ALSO: More Static: Time Warner Cable Denies Cramping CBS’s Internet-Video Style

On Aug. 2, Time Warner Cable pulled CBS signals for approximately 3 million subscribers, primarily in New York, L.A. and Dallas. The operator also dropped Showtime and three other CBS-owned cablers, while the Eye retaliated by blocking Time Warner Cable broadband subs from accessing full episodes online.

CBS could be losing as much as $400,000 per day in revenue and retransmission fees, according to Wall Street firm UBS.

In renegotiating the 2008 pact with Time Warner Cable, CBS is seeking higher retrans fees, arguing that the cable company pays the Eye less than other lower-watched cable networks.

Time Warner Cable’s position is that because CBS is asking for a large rate hike in retrans fees, the cable operator should retain access to a broad selection of on-demand content — including the ability to offer entire current and past seasons through VOD and “TV Everywhere” services. CBS has balked at that request because that would reduce the value of the content’s streaming rights, which company wants to sell to the likes of Netflix or Amazon.

Filed Under:

Want to read more articles like this one? SUBSCRIBE TO VARIETY TODAY.
Post A Comment 22

Leave a Reply


Comments are moderated. They may be edited for clarity and reprinting in whole or in part in Variety publications.

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

  1. Marian Brent says:

    Can anyone tell me if the fact that TWC is not providing everything I signed up for when I agreed to use their service grounds for early termination without incurring an early termination fee? I kind of feel like they’ve breached their end of the contract. I believe that they probably failed to accept CBS’s offer to keep the networks on the air during the negotiations, but they are painting it to look like CBS’s fault with their announcements that “CBS is at war with its viewers”. I think that’s not true; it’s TWC who is at war.

  2. krakyahead says:

    We live in Detroit and they fed me the same exact line about dropping and picking up stations I told them its unfair to charge full price for a incomplete package but since they have a monopoly in my area my only other choice is Direct Tv and no way Im switching to a dish ill just pay for HULU and move on once I have a choice screw Brighthouse networks and Timewarner.

  3. Cricket says:

    I’m in North Carolina. So why the fuck am I being blacked out?!?!?

  4. eqquesz says:

    Here’s where CBS and GE can meet- Sending a stuxnet to TWC,

  5. MRS> BRIDGES says:

    TW is the old MA BELL – until that monopoly was broken..

  6. eqquesz says:

    I saw this coming- CUT THE CABLE/UMBILICAL CORD- CBS. Take away all CBS related content AWAY FROM ANY TWC programming. Loss of CBS CATALOG= BIG sinkhole for TWC

  7. MRS> BRIDGES says:

    why do we pay for basic , and not get channel 2..also I wonder if a credit is going to be given for 8/13/2013 outing, I had no tv from 12:05pm through 9pm. if I had a better option then time warner cable, I would tell the building residents to switch..TWC does not like their customers only their money..they use to give free weekends of HBO,STARZ,etc..but not anymore..why don’t we unplug for a couple of days.

  8. Watergate_Mike says:

    The loss of CBS and Showtime +PLUS+ the blackout of all web access via every single online outlet to CBS content to TWC internet subscribers tallies up to outright theft from consumers. TWC must mitigate their inflicted restrictions on internet subscribers with refunds, reduced rates going forward or some compensation. After all, this whole staged stand-off is about money so subscribers must be made whole also. There is a cause for legal action in this regard.

  9. Cliff H says:

    I changed to Fios Goodbye Time Warner I will not be bullied by Time Warner

  10. cadavra says:

    Martin Mull famously said that show biz was “high school with money.” He was wrong. It’s nursery school with money.

  11. Donald Wygal says:

    I don’t understand why there are so many anti-TWC comments. CBS is literally asking for double the money from TWC in licensing fees and they are refusing to make most (all?) of their series available On Demand. Why would I want TWC to give CBS twice as much money as they currently do when I’m not going to get anything in return? Don’t you think that TWC will pass on that extra cost to me (and you)?

  12. Mark says:

    Sorry TWC, you’re excuses don’t wash. The local “Big 5” broadcast network affiliates rarely, if ever, get dropped from “basic cable” unless you get into a silly dispute like this. Bottom line is you aren’t delivering your service as advertised and you made the conscience decision to pull the plug. You owe your subscribers that rebate AND an apology.

  13. Pam says:

    So glad Time Warner is not in our area! I think I would have to take the same path as Ted (his comments below). We’ve got a pretty good cable provider and they seem to go out of their way for their subscribers, unlike TWC. Too many people have had way too many complaints about their service long before this conflict with CBS. I hope they end up paying the ultimate penalty.

  14. Ted Trent says:

    After this story broke, my partner and I got fed up. We cancelled our cable tv all together. We realized we basically wanted Netflix and can see everything else via Hulu with our new ChromeCast device. See you TV. You were a big waste of our time making us watch hours of commercials.

  15. SF says:

    If you aren’t going to give us a credit when you don’t give us CBS, then you shouldn’t charge us more when you bring it back.

  16. deborah holt says:

    I would of had directtv installed but the hud subsidy apt. manager refused the installation of the satellite dish. Im very disappointed in being caught in the middle of these idiots dispute.

    • Brian Dzyak says:

      Same here. But I only got TW Cable in the first place to get internet into my apartment. DSL doesn’t work and I’m not allowed to have a dish. Basically, TW has an effective monopoly on my little part of the world.

  17. aryedirect says:

    Time Warner is committing hari-kari by not being responsible to their customers. It has just added incentive for millions more of its subscribers to cut the cord.

More Biz News from Variety