Otis Singleton
CBS has experienced several blackouts in the past, including a 2019 AT&T carriage dispute that led to a DirecTV blackout. In 2013, CBS and Time Warner Cable were involved in a fee dispute, resulting in a blackout affecting millions of subscribers in major markets like New York, Los Angeles, and Dallas. This particular incident will be the focus of our discussion, including the causes, impacts, and any potential resolutions or alternatives for viewers. We will explore the implications for viewers, the strategies employed by CBS and Time Warner Cable, and the broader context of retransmission fees and their impact on the television industry.
| Characteristics | Values |
|---|---|
| Date | 2013 |
| Companies Involved | CBS, Time Warner Cable |
| Locations Impacted | New York, Los Angeles, Dallas |
| Number of Customers Affected | 3.5 million |
| Reason for Blackout | Fee dispute |
| Alternative Options | Streaming services (Hulu, YouTube TV, FuboTV), Over-the-air antenna, Aereo TV service |
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What You'll Learn
Time Warner-CBS blackout in 2013
In 2013, a contract dispute between Time Warner Cable and CBS resulted in a month-long blackout of CBS programming for Time Warner subscribers. The dispute, which began in August, centred around retransmission fees—fees that cable or satellite service providers pay to transmit programs to their customers.
The blackout affected an estimated 3.5 million customers in major cities like New York, Los Angeles, and Dallas. Sports fans were particularly impacted, as they missed out on events like Tiger Woods' victory in the Bridgestone Invitational golf tournament.
Time Warner Cable's decision to drop CBS programming drew criticism from customers, with some having to resort to hooking up antennas to access CBS's free over-the-air broadcast signal. The dispute also led to a significant loss of subscribers for Time Warner Cable. In the third quarter of 2013, the company lost 306,000 TV subscribers, a much larger number compared to the previous year's loss of 29,000 subscribers in the same quarter.
The financial impact of the dispute was substantial for Time Warner Cable. Not only did they lose subscribers, but their net income also dropped significantly. In the third quarter of 2013, their net income was $532 million, a sharp decline from the $808 million they made in the same quarter the previous year. The company also incurred additional costs due to increased marketing spending and $15 million in credits issued to Showtime subscribers affected by the blackout.
The Time Warner-CBS blackout highlights the vulnerability of cable and satellite companies when contract disputes lead to programming blackouts. It also underscores the frustration and inconvenience experienced by customers when they are unable to access their favourite shows and programming.
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DirecTV blackout in 2019
CBS and DirecTV were involved in a carriage dispute in 2019, which resulted in a blackout. DirecTV customers were blocked from accessing CBS programming, including CBS All Access. CBS's decision to blackout was influenced by the retransmission consent fees charged by DirecTV for its content. CBS's broadcasting signal is free to access over the air, and the blackout led many viewers to opt for over-the-air antennas instead of cable or satellite bundles.
During the 2019 DirecTV blackout, customers could watch CBS through streaming services like Hulu with Live TV, YouTube TV, or FuboTV. Locast, a newer service, also allowed users to live stream broadcast networks over the internet for free.
Programming blackouts have become increasingly common in the TV industry. They typically last from a few days to several weeks but can occasionally stretch for years. For example, a dispute between The Weather Channel and Verizon resulted in a 1,567-day blackout for Verizon customers. DirecTV has offered credits to customers during blackouts, which can be claimed by checking credit eligibility using their zip code.
In 2024, DirecTV customers experienced another blackout when Disney pulled ESPN, Disney, and other networks from the service. DirecTV offered a $20 credit to affected customers, which could be claimed by following specific steps.
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Fee disputes
In 2013, CBS and Time Warner Cable were involved in a fee dispute that led to a programming blackout affecting millions of subscribers in major markets like New York, Los Angeles, and Dallas. The dispute centred around increases in retransmission fees that CBS receives from cable and satellite operators. CBS is the No. 1-rated U.S. television broadcast network, and its shows, such as "The Big Bang Theory" and "NCIS", are extremely popular.
Time Warner Cable briefly blacked out CBS's stations in some areas, pulling the plug on not just CBS but also other CBS-owned cable networks like Showtime, TMC, Flix, and Smithsonian. This action was taken after weeks of contentious negotiations, with Time Warner claiming that CBS's fee demands were "out of line and unfair," exceeding what others pay for the same programming. CBS, on the other hand, fought back by suspending full episodes on CBS.com for customers with Internet access provided by Time Warner Cable in the affected markets.
The threat of blackouts has become a common strategy in negotiations between networks and cable or satellite TV operators over retransmission fees. These disputes can be frustrating for customers, who may miss out on popular programming, sporting events, and news. In this case, sports fans were impacted, and golf fans, in particular, missed Tiger Woods' victory in the Bridgestone Invitational.
To avoid such inconveniences, viewers can opt for alternative options during carriage disputes. Stand-alone streaming services like Hulu With Live TV, YouTube TV, or FuboTV offer CBS as part of a bundle. Additionally, CBS's broadcasting signal can be accessed for free over the air using an over-the-air antenna. Locast, a newer service, also allows users to live-stream broadcast networks over the internet at no cost.
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Retransmission fees
The concept of retransmission fees came about when cable television started to replace traditional over-the-air broadcasting in the 1960s. The Federal Communications Commission (FCC) established must-carry rules, requiring cable TV operators to carry all significantly viewed local broadcast stations. After these rules were deemed unconstitutional in the late 1980s, the 1992 Cable Act created retransmission consent provisions as an alternative to must-carry.
Under the Retransmission Consent rules established in the 1992 Cable Act, broadcast networks can either require cable operators to carry their signal at no cost, or they can ask for monetary compensation (retransmission fees) or other considerations from cable TV providers in exchange for allowing them to retransmit their signals. If the cable operator rejects the broadcaster's proposal, the station can prohibit the cable operator from retransmitting its signal.
Programming blackouts have become increasingly common in the United States as TV networks square off against cable or satellite service providers that pay these retransmission fees. For example, in 2013, millions of Time Warner Cable subscribers in New York, Los Angeles, and Dallas were without CBS Corp programming for several weeks as the two companies were unable to settle a fee dispute. In another instance, DirecTV's 20 million customers were unable to see more than 20 of Viacom's cable networks for 10 days.
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Workarounds for viewers
If you are experiencing a CBS blackout on Service Electric Cable, there are a few things you can try. Firstly, check if CBS.com is down by visiting websites such as isitdownrightnow.com. If the website is down, you may need to wait for it to come back up. However, if the website is up but you can't access it, try using an alternative DNS service such as OpenDNS or Google Public DNS.
If you are experiencing a CBS blackout due to a dispute between CBS and your cable or satellite provider, there are alternative ways to watch CBS programming. One option is to use a streaming service that offers CBS as part of a bundle. Hulu with Live TV, YouTube TV, or FuboTV are some options, and many of these services offer a free week, so you may be able to cancel without paying if the dispute is resolved quickly. You could also try Locast, a newer service that lets you live stream broadcast networks over the internet for free.
Another option is to use an over-the-air antenna to access CBS's broadcasting signal for free. This is a good option if you want to avoid cable or satellite bundles altogether. This is a simple workaround, as demonstrated by a Los Angeles resident who said, "I had to hook up an antenna to get the local off-air... I did it strictly because I wanted to see the golf tournament. I've got it all hooked up but it's inconvenient."
Finally, if you are a Time Warner Cable subscriber, you can sign up to receive CBS from media mogul Barry Diller's Aereo TV service, which streams over-the-air broadcast signals to a tablet or computer for a fee of $8 per month. Aereo pays no fees to CBS, so you can avoid the dispute altogether.
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Frequently asked questions
Yes, CBS is facing a blackout due to a fee dispute with Service Electric Cable.
CBS and Service Electric Cable are in a fee dispute, with CBS demanding higher retransmission fees for its content.
The blackout has affected an estimated 3.5 million customers in major cities like New York, Los Angeles, and Dallas, who are unable to access CBS programming and its affiliate stations.
Yes, there are a few alternatives to watching CBS during the blackout. You can try streaming services like Hulu with Live TV, YouTube TV, or FuboTV, which offer CBS as part of a bundle. You can also access CBS for free over the air using an antenna.
It is unclear how long the CBS blackout will last. In the past, similar blackouts have lasted for a few days to several weeks.
