CBS, AT&T tensely heading toward contract wire

[whitewolf8214]

CBS, AT&T tensely heading toward contract wire
Jun 8 2015, 17:19 ET | About: AT&T Inc. (T) | By: Jason Aycock, SA News Editor

In the latest (but not the last) contract dispute over TV programming, AT&T (NYSE:T) has a contract expiration coming June 30 for CBS and its cable channels, including Showtime -- and CBS seems to be expecting its channels to go dark on the U-verse service.
CBS is showing frustration with AT&T's slow progress, The Wall Street Journal reports, and is concerned that it's a precursor to a U-verse shutdown by AT&T, which is hoping to close its acquisition of DirecTV (NASDAQTV) also by the end of June.
If CBS stations go dark, 2.5M subscribers (many more in Showtime's case) would lose the programming, primarily in Dallas, Los Angeles and Chicago.
AT&T has suggested that it had no plans to shut down U-verse just because of acquiring DirecTV, but if the merger closes before the U-verse contract is renewed, the DirecTV team might take over negotiations -- and that with the advantage of seeing a one-time rival's contract with the broadcaster.
http://seekingalpha.com/news/2568056-cbs-at-and-t-tensely-heading-toward-contract-wire#email_link

 

[Jimbo]

I would expect all contracts with ATT from this point forward to also align with D*'s if at all possible.
At the very least, have them align so they can be negotiated together the next time around.



Fwiw, I DON'T see at&t shutting down U Verse after all they have invested in it.

 

[dfergie]

CBS’ talks with AT&T went down to the wire on Tuesday night as the sides faced a midnight expiration of CBS’ existing contract. CBS has been pushing hard for fee increases on retransmission consent deals for its 29 TV stations as it has promised investors that the company will rep $2 billion annually in retrans revenue by 2020. CBS is said to have pushed for fees of $2 a sub in its most recent round of retrans negotiations.

AT&T is in the midst of the regulatory review of its pending merger with satcaster DirecTV. The telco undoubtedly would have preferred to wait until it had the clout of DirecTV, the nation’s second-largest MVPD, behind it at the negotiating table. But AT&T had no choice but to strike a new deal by the June 30 contract expiration date rather than run the risk of a CBS blackout, which would not have played well for the company in Washington.

variety.com

 

[CK SatGuy]

I can tell you that the CBS/CW combo in Detroit is NOT worth $2 per sub. If the CBS station in Detroit did some local news, maybe...depending on how good the local news would be.

 

[Jimbo]

Out of the Major Networks, I would agree that CBS should get the most as they have held the bar for top shows on Network TV for awhile now. (maybe not this year, but they gotta look at what they have done as well.) They will be back on top when the Fall season gets going again, not sure where they are currently.
That said, I don't think $2 is reasonable either .... then again, all the others had better know that they need to fall into place under that figure.