This Day On The Street
Continue to site
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

Time Warner Cable Extends Deadline by Three Hours as CBS Talks Continue

Updated from 5:06 ET with additional information.

NEW YORK ( TheStreet) -- Time Warner Cable (TWC - Get Report) and CBS (CBS - Get Report) agreed to extend talks for a new retransmission consent agreement to 8 p.m. EDT, extending by three hours a deadline that could force a blackout of the network's programming in New York, Los Angeles, Dallas and some smaller areas in other cities.

The announcement to extend the deadline from 5 p.m. EDT for three hours was made by both companies in emails.

At issue are fees that Time Warner Cable must pay to CBS to carry programming in regions where the network owns local television stations. These so-called retransmission fees have been rising in recent years as programming costs have increased along with total viewers.

"This is just the latest of these high-profile disputes and it's probably not the last," Robin Flynn, a senior analyst at SNL Kagan said in a phone interview from Monterey, Calif. "As programming increases across the board, broadcasters as well as cable-TV networks are increasingly drawing the line, and in this case, because it is a major deal involving major markets, Time Warner Cable chose to dig in its heals."

Whatever CBS is able to extract from Time Warner Cable is likely to become a starting point for similar negotiations the pay-TV provider is scheduled to have in the coming years with other programmers, including Time Warner (TWX) and Discovery Communications (DISCA).

As content providers demonstrate that they have won the upper hand in talks with distributors, pressure grows on pay-TV providers to merge in hopes of amassing sufficient clout to withstand the steady increase in retransmission fees. Time Warner Cable is said to be considering a deal to combine with Charter Communications (CHTR).

"While content's winning streak appears safe, consolidation among its distributors could threaten that streak," Morgan Stanley analyst Benjamin Swinburne said in an investor note published on Monday. "Should 'bigger is better' become a trend among distributors, it is likely to spur consolidation among media owners as well."

Shares of Time Warner fell 1.4% to $115.23 while CBS slid 2.1% to $52.39. The S&P 500 dropped to its lowest level in almost two weeks, losing 0.4% to 1,685.34, trimming the index's gain this year to 18%.

Written by Leon Lazaroff in New York

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

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
CBS $57.47 0.00%
TWC $212.52 0.00%
AAPL $93.24 0.00%
FB $117.81 0.00%
GOOG $701.43 0.00%


Chart of I:DJI
DOW 17,660.71 +9.45 0.05%
S&P 500 2,050.63 -0.49 -0.02%
NASDAQ 4,717.0940 -8.5450 -0.18%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs