CBS (NYSE: CBS) and Time Warner Cable (NYSE: TWC) find a solution

This past month, CBS Corporation (NYSE: CBS) and Time Warner Cable Inc. (NYSE: TWC) were in disagreement which affected 3 million Time Warner subscribers in Dallas, Los Angeles, and New York. The two companies were not able to come into an agreement on how much CBS and CBS owned channels should cost. As a result, viewers in those regions, were not able to view some of the more popular shows like “Under the Dome”, “NCIS”, and the start of the football season. The blackout caused the CBS viewership to drop by 1%.   

The two companies have come to an agreement as of today. CBS has increased the fee that Time Warner receives per subscriber, which for CBS, is a win.  They increased the fee from $1 to $2. Time Warner Cable’s CEO stated that “While we certainly didn’t get everything we wanted, ultimately we ended up in a much better place than when we started,”.

In a time where American viewers are switching to alternative sources to view their shows like Hulu, Netflix Inc. (NASDAQ: NFLX) , and other internet-based outlets, it has been a difficult time for both companies. With the companies ending the dispute as the NFL season opener draws near and the U.S Tennis Open Tournament in its opening weeks, it is beneficial for both companies to come to an agreement during such a critical time.

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