Business

Time Warner blacks out CBS

Time Warner Cable took the nuclear option this afternoon, blacking out CBS as part of it ongoing carriage fee battle with the Tiffany Network.

The CBS signal disappeared off Manhattan cable systems at a little after 5 P.M. and possibly other screens in LA and Dallas where the battle is also raging.

The CBS signal was replaced with a Time Warner Cable message pointing CBS viewers to other options such as rabbit ears, CBS.com and even Barry Diller backed Aereo, a service that draws down network signals and delivers them to mobile devices. CBS is in litigation against the company.

“CBS has made outrageous demands for the programming that it delivers free over the air and online requiring us to remove their stations from your line-up while we continue to negotiate for fair and reasonable terms,” read the Time Warner Cable statement.

CBS technically controls the signal to its broadcast rather than Time Warner Cable, but the two did not meet a self imposed negotiating deadline set for 5 P.M. ET. Without a contract Time Warner Cable can decline to carry the signal.

CBS is said to be seeking $2 per month, per subscriber from the New York-headquartered cable system, an increase from somewhere between the 50 cents and $1 it currently receives.

Time Warner Cable is balking at paying increased rates which they say forces up fees for consumers. The firm just instituted a new modem fee for customers.

Time Warner Cable confirmed to The Post it is in the process of going dark in New York, Dallas and LA. CBS’s Showtime, TMC, FLIX and Smithsonian channels are also going dark. Customers pay separately for premium pay-TV service Showtime.

In a statement the Time Warner Cable said: “We agreed to an extension on Tuesday morning with the expectation that we would engage in a meaningful negotiation with CBS. Since then, CBS has refused to have a productive discussion. It’s become clear that no matter how much time we give them, they’re not willing to come to reasonable terms. We thank our customers for their patience and support as we continue to fight hard to keep their prices down.”

CBS accused Time Warner Cable of conducting negotiations in a “combative and non-productive spirit, indulging in pointless brinkmanship and distorted public positioning.”

“This is the first time in history that CBS has been dropped by a cable system.” The company said they simply seek fair compensation. “We will not give up our channel position or any other asset by which our viewers indentify us.”