Breaking Finance News

Time Warner Cable May Drop CBS

CBS (NYSE: CBS) is taking a recent fight with Time Warner Cable (NYSE: TWC) public after it posted the following message on social media today:

“Say Goodbye to CBS? Time Warner Cable is threatening to drop CBS. Call Time Warner Cable. Tell them to keep CBS. 1-888-TW-Cable. Stay informed at KeepCBS.com”

The two companies are negotiating a new carriage pact that expired on June 30. Obviously, the talks are breaking down as CBS published and promoted a website complete with a video in which a TV with chains wrapped around it is shown while an ominous announcer talks about how Time Warner customers may lose the ability to watch their favorite programming as early as this week.

Most customers know that with the purchase of an inexpensive digital antenna, watching CBS programming is relatively simple but it’s still an inconvenience–something CBS is banking on as negotiations continue. Time Warner said that CBS is asking for a 600 percent markup while CBS says that Time Warner won’t negotiate the same type of deal that it already has with other media companies.

Wells Fargo (NYSE: WFC) analyst Marci Ryvicker seemed to indicate that CBS would likely come away the winner. “Content tends to have the upper hand in these disputes.” CBS, with it’s slew of high profile programming clearly has some weight in which to demand premium pricing.

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Disclosure: At the time of this writing, the author had no position in the company mentioned.

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