Time Warner Cable and CBS Corp. have once again extended their negotiations for a carriage agreement for CBS-owned media properties.
The current distribution agreement between the two companies was set to expire at 5 p.m. However, Time Warner Cable said negotiations would continue for another hour to 6 p.m. This is the second time today that a blackout was postponed.
The two sides have been trying for weeks to come to terms on a distribution pact to keep CBS-owned TV stations, including KCBS-TV Channel 2 and KCAL-TV Channel 9 in Los Angeles and WCBS-TV in New York on Time Warner Cable. The talks also include CBS-owned cable channels Showtime and CBS Sports Network.
CBS wants a big increase in fees for its its stations, which Time Warner Cable is resisting. CBS, which is the most-watched TV network, argues that it is undervalued compared with cable channels that have lower ratings but collect higher distribution fees from pay-TV operators.
Time Warner Cable has indicated that it is willing to pay more for CBS but that the network is being too aggressive.
In a recent report, media analyst David Banks of RBC Capital Markets said CBS is looking to increase the fee Time Warner Cable currently pays from less than $1 per subscriber per month to a figure approaching $2 in the first year and with subsequent increases in later years.
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