CBS to Create New Cable TV Network

CBS officials said Wednesday that the network has agreed with Comcast Cablevision, the nation’s third-largest cable operator, to create a new cable television channel. Under the deal, Comcast will transmit the new cable channel’s programming in exchange for the rights to continue carrying CBS-owned TV stations.

CBS thus joins ABC, NBC and Fox in agreeing to form cable networks. By striking deals similar to the CBS-Comcast agreement, the networks have virtually ended the threat that cable systems would not be able to carry popular network shows such as “60 Minutes” or “Home Improvement.”

Through such deals, however, the four networks also in effect have dropped demands that cable systems pay them large sums for the right to carry network programming. Federal cable re-regulation law passed last year allowed networks and other broadcasters to demand that cable systems pay them for their broadcast signals. But the cable industry refused and threatened to drop network-owned stations.