This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Time Warner Cable Threatens to Drop CBS's Coveted Channel Placement

Stocks in this article: CBS TWC TRBAA AMCX

NEW YORK ( TheStreet) -- CBS (CBS) was falling after Time Warner Cable (TWC) warned that the network could forfeit its coveted Channel 2 placement on the pay-TV provider's dial if the two companies cannot agree on a new carriage contract by tomorrow at 9am EDT.

In response, CBS, in a statement, said the network wouldn't agree to a re-transmission deal involving CBS-owned local television stations in New York, Los Angeles and Dallas if the network loses its spot on the dial.

"CBS obviously won't be making any deals where we are required to change our channel position," the company's statement said.

CBS was falling in mid-afternoon trading, dropping 0.3% to $52.33 while Time Warner Cable was slipping 0.2% to $117.10.

The two media companies, each with market capitalizations around $33 billion, are locked in negotiations over fees that Time Warner Cable pays CBS to carry its programming on local TV stations in those three cities in addition to smaller areas in other cities where the cable-TV company has operations. A failure to come to an agreement could result in a blackout of CBS channels for Time Warner Cable subscribers.

The companies' five-year re-transmission agreement expired on June 30, and was extended to July 25 at 9 a.m. EDT.

If CBS were to lose its Channel 2 position on the Time Warner Cable dial, BTIG media analyst Richard Greenfield said in a blog post that there would be more than a few networks eager to fill the spot.

"While every channel should want to be in the 2 slot in the two biggest cities, we suspect channels that skew older (for whom legacy channel position probably matters more) are more likely to place greater value on the channel 2 position," Greenfield wrote.

A&E, AMC Networks' (AMCX) flagship station, and Tribune's (TRBAA) WGN would be among the most likely bidders, he said.

As for a winner in the CBS/Time Warner Cable spat, Greenfield says that the content provider rather than the owner of the pipes historically has the upper hand given the alternative ways viewers can access their favorite shows.

Written by Leon Lazaroff in New York

>To contact the writer of this article, click here: LeonLazaroff.>.

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs