News & Events

CBS-AT&T negotiation goes blank

With the ever-increasing trend in cord-cutting, cable and satellite providers are facing diminishing earnings and the pressure to deliver more compelling programmes.

For the first time, CBS has gone dark on AT&T’s group of pay-TV platforms on Saturday morning, July 20. This comes after a failure in the negotiation of the distribution agreement, and the blackout has affected about 6.6 million viewers of DirecTV, DirecTV Now and U-Verse — depriving New York, Los Angeles and Chicago subscribers of programmes such as CBS Evening News, and The Late Night Show With Stephen Colbert.

The dispute arose from AT&T’s disagreement with CBS’ carriage rate to air its channel on satellite and pay-TV.

Strangely, the blackout is a facsimile of the carriage dispute between CBS and Time Warner Cable in 2013, which saw CBS gaining leverage over the negotiations as the blackout was concluded just  a few days before the start of the regular NFL season.

While AT&T may want to line up CBS-owned stations, customers today demand more value proposition from their pay-TV subscriptions. According to The Wall Street Journal, CBS has turned down AT&T’s “unprecedented rate increase”, citing that it is seeking fair market value for its channel.

CBS currently own rights to broadcast NFL games, and the pre-season will begin on Aug 18 this year. If the blackout persists, CBS may again gain more bargaining chips on the negotiation table.

Tags

Related Articles

Back to top button

Subscribe to the latest news now!

 

    Close