It just might be that CBS'
For years, broadcasters have attempted to gain compensation from the cable operators for the retransmission of their content. And for just about as many years, the cable operators have essentially stonewalled the broadcasters, who were reluctant to invoke their figurative power of the switch and cut cable subscribers off from broadcast programming. In late 2005, however, things began to change when Viacom
After that, it became important to Leslie Moonves, CBS CEO, to convince the investment community that his company had real growth potential and was not simply a collection of becalmed television operations. Tapping into a meaningful new income stream comprising payments from cable clearly would help to make the company's case.
In 2006, the battle between cable and the broadcasters intensified when Sinclair Broadcasting
To cast them in their proper light, CBS' newly disclosed agreements apparently involve nine small cable operators and a total of about 1 million total subscribers. As such, the large broadcaster clearly has been able to flex its muscle with small cable operators and perhaps gain the $0.50 per subscriber each month it had sought.
But a much larger and more meaningful battle is on the horizon between Sinclair and Comcast
This fight likely will prove interesting before it is resolved. In the process, it could have a meaningful impact on the share prices of the companies involved. I urge Fools to stay tuned.
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