Time Warner Cable CEO Glenn Britt on Monday sent a letter to CBS CEO Les Moonves provide a controversial new proposal to end the CBS show on the big screen TV market, including New York and Los Angeles blackouts.
Britt asked the customer as a single sales channel CBS on "a la carte" basis, dismissed the idea by CBS as a "fake."
Exchange is the No. 1 U.S. broadcast network viewership and the 2nd tier suppliers, has left millions of customers unable to watch the summer hit "dome" and aired a live sports contest between controversial public on the latest developments CBS golf.
Due to power outages late Friday began extending into the third day, competitor Verizon FiOS TV provider says it accepts Time Warner Cable customers who can not watch the CBS service requirements.
Britt said that to the end of the confrontation, Time Warner Cable can provide customers pay CBS network "a la carte" in the U.S. cable industry, the idea of ??risk as a chance.
, "Britt said:" The debate today is not our point, we will let our customers decide for themselves how much value they confer CBS programming.
Meanwhile, CBS (CBS), is known as "false" and "public relations vehicle design scattered facts, Time Warner Cable is not negotiating in good faith the proposal."
Time Warner said it was "disappointed" CBS "lack of responsiveness."
"Our efforts to get CBS programming for our clients is sincere, we have provided two suggestions to complete, while CBS offers nothing in return," the company said in a statement.
CBS and other media companies sell packages channel operators, a common practice in the cable industry. CBS cable channels such as Showtime is also dark, because the company's dispute with Time Warner Cable negotiated its programming involves a bundle.
Allow customers to cherry pick the desired channel, they can reduce the media company's revenue. Needham & CO 7 months of the estimate, the cable industry, including media content providers may lose 50% of their income, or about $ 7 billion, if the a la carte is widely used.
Time Warner Cable, said,, CBS can choose a la carte channel pricing and broadcasters can collect all revenue.
This is not the first time Time Warner Cable companies have used this tactic. In 2007, Britt offers NFL games sold separately to the customer, his company can not agree to the terms of the NFL Network cable channel.
"A la carte will never happen," BTIG analyst Rich Greenfield said. CBS '"entertainment business people know the familiar economic and structural cable industry does not work, is unlikely to be for some time."
Time Warner Cable also offers additional costs will be paid to CBS, but it did not detail specific details.
RBC Capital Markets analyst David Bank estimates, the current CBS charged $ 1 per month, per user, and is seeking to double to $ 2 per user.
Time Warner Cable's latest proposal will not include digital rights, it said, CBS offers other cable companies. These rights include the CBS (CBS) premium channel Showtime's digital applications, competing with HBO GO, said a source familiar with the matter.
FiOS fiber-ready
Recent history shows that these battles can hurt pay-TV providers, who lost users when they sign with rivals. Last summer, the satellite operator DirecTV company said cancellation rates rise, Viacom's Nickelodeon and MTV networks, including the dark for 10 days.
Cablevision's Fox blackout blamed on the 15th in 2010, most of the World Series deprived of their customers, many of its losses in the quarter 35,000 users.
Verizon FiOS, Time Warner Cable in New York's fierce rivals, saying it was to accept the "Time Warner Cable users can not watch CBS content service requirements more and more."
Verizon spokesman Bill Kula did not specify how many users access Time Warner Cable's FiOS. He said fiber-based FiOS TV, Internet and telephone customer service cable TV operators, competition, and that "good use of the situation."
Verizon's FiOS service has been in New York, Time Warner Cable is one of the biggest threats, and made for the cable companies in the local market, such as a serious erosion of Staten Island, research analyst Craig Moffett Moffett said .
He estimates that Time Warner Cable FiOS competition in about 14% of its footprint, about half of the country's leadership in New York City competition from their heads overlap. FiOS, but also in Dallas, another Time Warner Cable markets blackening CBS.
ISI analyst Vijay Jayant said that Time Warner Cable in the dispute, but will lose some customers tell how many will leave, it is too early.
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