In an unprecedented move, massive media conglomerate Time Warner Cable dropped its major network, CBS, along with its premium channel Showtime after stalled negotiations on Friday. The move prompted a blackout of CBS and Showtime in major U.S. cities like New York, Los Angeles, Boston and Dallas at 5 p.m. EST on Friday. According to Cnet, CBS, Showtime's parent company, failed to reach an agreement with Time Warner over retransmission fees -- fees that CBS needs to provide their network to subscribers -- after many negotiation deadline extensions. CBS is seeking more revenue from their parent company in a re-negotiation for their carriage contract after their previous agreement expired on June 30. Although negotiations will continue, CBS, Showtime, WCBS, TMC, Flix and the Smithsonian channel are still currently blocked for Time Warner subscribers.
Although Time Warner directed subscribers without access to CBS to go to CBS.com to watch their favorite network shows, CBS has blocked streaming full-episodes for some with Time Warner as their cable provider. Cnet reports that as of Friday, New Yorkers did not have access to full-length CBS videos online.
Eric Mangan, spokesperson for Time Warner, issued a statement, "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. We thank our customers for their patience and support as we continue to fight hard to keep their prices down."
Maureen Huff, spokeswoman for TWC, denounced CBS' retaliatory move to block online programming. "CBS has shown utter lack of regard for consumers by blocking Time Warner Cable's customers, including our high-speed data only customers, from accessing their shows on their free website," Huff said.
CBS then issued a statement slamming their parent company. "We deeply regret this ill-advised action, which is injurious not only to our many affected viewers, but also to Time Warner Cable itself. Throughout this process, Time Warner Cable has conducted negotiations in a combative and non-productive spirit, indulging in pointless brinksmanship and distorted public positioning ... What CBS seeks, and what we always have sought from the beginning, is fair compensation for the most-watched television network with the most popular content in the world. We will not accept less ... We hope and believe this period of darkness will be short and that we can all get back to the business."
Showtime also expressed their outrage at the media titan. "The service interruption is not only completely unnecessary, but totally punitive to our subscribers, and will impact and inconvenience millions," Showtime said in a public statement. "Unfortunately, Time Warner Cable and Bright House Networks subscribers will be denied access to new episodes of the climactic eighth and final season of "Dexter", and the most popular freshman series the network has ever had, "Ray Donovan"."
Showtime's vastly popular series "Dexter" and new hit "Ray Donovan" both air on Sunday night.
Presently, there is no word as to when the imposed blackout will be lifted for Time Warner subscribers.