In an unprecedented move for CBS (PARA 13.40%), unproductive negotiations with cable provider Time Warner Cable (NYSE: TWC) have led CBS to take its channels -- including Showtime, TMC, and Smithsonian -- off the air in several markets around the country, the two companies recently announced.
In alarmingly candid press releases, CBS and Time Warner Cable each placed the blame for the recent impasse on the other. Responding to the removal of CBS programming in markets such as New York, Los Angeles, and Dallas, CBS said, "Throughout this process, Time Warner Cable has conducted negotiations in a combative and non-productive spirit, indulging in pointless brinksmanship and distorted public positioning -- such as the fictional and ridiculous 600% increase CBS supposedly demanded -- while maintaining antiquated positions no longer held by any other programming distributor in the business."
Conversely, Time Warner Cable commented: "We agreed to an extension on Tuesday morning with the expectation that we would engage in a meaningful negotiation with CBS. Since then, CBS has refused to have a productive discussion. It's become clear that no matter how much time we give them, they're not willing to come to reasonable terms."
Markets including Chicago, Denver, Boston, and Detroit, among others, were also affected by the failed negotiations between CBS and Time Warner Cable. Both parties maintain they hope for a quick resolution to the dropped programming, though neither CBS nor Time Warner Cable has provided information as to when negotiations would resume.
