RBR+TVBR INFOCUS
At roughly 2am Eastern on Saturday, July 20, the nation’s most-watched television network according to Nielsen was no longer easily available to roughly 6.5 million customers paying a monthly TV services bill to three AT&T-owned platforms.
Cough it up to yet another retransmission fee fight.
That said, the cumulative number of TV viewers across the U.S. who can’t receive CBS or The CW programming is even higher, thanks to other retrans fights.
In a move that was widely expected, DirecTV, legacy MVPD U-Verse and “skinny bundle” vMVPD DirecTV NOW, by law, were forced to drop all CBS Corporation owned stations from their lineups.
The result? Viewers from Burbank to Brooklyn, and from Miami Beach to Minneapolis, aren’t able to view CBS This Morning, The Late Show with Stephen Colbert, reality show social media darling Love Island or even long-running soap operas such as The Young and the Restless.
After 48 hours without CBS, viewers are already vocal, taking to venues including RBR+TVBR to vent. “For the two of you playing like children in a sandbox and sing your customers as pawns, remember this: The people are the ones paying your bills and keeping you afloat,” said “Dave J.”
Miami resident Sharon Metras added, “We are very disappointed not being able to get channel 4 programming. I agree with Dave. Stop playing like children and get an agreement together.”
A total of 17 DMAs are impacted by the stalemate over a new retransmission fee agreement between CBS and AT&T. They are among the nation’s biggest.
- NEW YORK: WCBS-2 and WLNY-55, found on cable channel 10 across much of the New York metropolitan area
- LOS ANGELES: KCBS-2 and KCAL-9, a news-heavy station that has long been unaffiliated
- CHICAGO: WBBM-2
- PHILADELPHIA: KYW-3 and The CW affiliate WPSG-57
- DALLAS-FORT WORTH: KTVT-11 and KTXA-21, an unaffiliated station
- SAN FRANCISCO-OAKLAND-SAN JOSE: KPIX-5 and The CW network-affiliated KBCW-44
- ATLANTA: The CW-affiliated WUPA-69
- BOSTON: WBZ-4 and former “Superstation” WSBK-38, today a MyNetworkTV-affiliated station
- SEATTLE-TACOMA: KSTW-11, an affiliate of The CW Network
- TAMPA-ST. PETERSBURG: WTOG-44, an affiliate of The CW Network
- DETROIT: WWJ-62 and WKBD-50, the CW affiliate
- MINNEAPOLIS-ST. PAUL: WCCO-4 and satellite station KCCW-12 in Walker, Minn.
- MIAMI-FORT LAUDERDALE: WFOR-4 and WBFS-33, the MyNetworkTV affiliate for South Florida
- DENVER: KCNC-4
- SACRAMENTO: KOVR-13 and The CW affiliate KMAX-31
- PITTSBURGH: KDKA-2 and WPCW-19, The CW affiliate serving Western Pennsylvania
- BALTIMORE: WJZ-13
For one viewer seeking to watch WTOG on Saturday, the following message appeared:
For DirecTV NOW subscribers, the situation is worse. Because of how retransmission negotiations are handled for the vMVPD, some 117 CBS stations and affiliates are being blocked from paying subscribers.
Furthermore, DirecTV and DirecTV NOW subscribers have lost access to CBS Sports Network, while DirecTV consumers cannot tune in to the CBS-owned cable offering Smithsonian Channel.
In a statement released Saturday, following AT&T’s required action to remove its stations, CBS said, “After months of negotiations, CBS is simply looking to receive fair value for its popular programming and is proposing economic terms similar to those that AT&T’s competitors have accepted in hundreds of our recent distribution agreements.”
It explained that the DirecTV deal which expired was signed in 2012 “and is nowhere close to today’s fair market terms for CBS content – to which AT&T’s competitors have repeatedly agreed.
CBS granted an extension of its now-expired deal with AT&T in early July to try to reach an agreement “without consumers being put in the middle.”
On Friday, CBS proposed an additional extension of 30 days “to work towards a fair deal for all parties – most importantly, our loyal viewers,” it said.
AT&T declined that additional extension, according to CBS.
“While CBS has made every effort to avoid this blackout, we won’t agree to terms that undervalue our hit programming enjoyed by nearly 240 million viewers across all dayparts last season,” CBS said.
The company then berated AT&T for its “long and clear track record of letting its consumers pay the price for its aggressive tactics to get programmers to accept below market terms.”
The statement concluded, “While we continue to negotiate in good faith and hope that AT&T agrees to fair terms soon, this loss of CBS programming could last a long time.”
For its part, AT&T is explaining “What’s going on with CBS” on a dedicated webpage that — to the surprise of no one who follows retransmission consent battles — puts all of the blame on CBS.
“Please know that we had no wish to see any local CBS stations removed from our service and had asked CBS to keep them available while we continue to negotiate,” AT&T said, making no reference to CBS’s claim that it sought an additional extension of the expiring retrans deal. “CBS removed them instead. This is completely CBS’s decision.”
AT&T further lobbed accusations at CBS, noting to its customers that the company “has removed many of these same local stations for DISH Network and Charter Spectrum customers before. They’ve also threatened to remove stations from hundreds of thousands of other viewers to try to increase fees.”
Furthermore, the DirecTV and U-Verse parent pledged to its customers, “We’re fighting for you.”
On Capitol Hill, elected legislators are likely saying the same thing to their constituents.
Rep. Anna Eshoo (D-Calif.) and Republican Whip Steve Scalise of Louisiana are among those leading the charge in the House of Representatives. On July 16, the Members of Congress sent a letter to Nexstar Media Group President/CEO Perry Sook and to AT&T Chairman/CEO Randall Stephenson calling for an end to the first of three big retransmission fee stalemates that have unfolded in the last month, with CBS Corp. being the third. A Meredith Corp. breakdown in retrans talks with DISH Network has now lasted nearly one week.
It has been nearly two weeks since a July 4 “blackout” of all stations owned by Nexstar across DirecTV, DirecTV NOW and U-Verse.
Eshoo and Scalise, like Sen. Richard Blumenthal and a host of other D.C. leaders, are “deeply troubled” by the loss of access to Nexstar-owned stations across AT&T-owned services.
In their letter, Eshoo and Scalise wrote, “Americans are paying more than ever for cable and satellite television, but every time there’s a blackout, viewers lose access to local programming. We’ve long championed modernizing media laws and regulations. In fact, we’ll soon be introducing legislation that will reform this broken system, including better ways to address perennial blackouts.”
Until that actually comes to fruition, ugly battles over retransmission consent will likely continue, and get more fierce. On Friday, Capitol Hill legislators received a letter from AT&T defending itself in its negotiations with CBS.
“We have offered CBS the highest rate we currently pay any major broadcast network group,” it said. “We have offered to market CBS All Access to our millions of customers on their behalf. CBS has rejected all these offers. CBS has a history of blacking out their stations to demand severe price increases. They have done this repeatedly to millions of Dish, Charter and other pay TV subscribers.”
For AT&T, “The problem is that broadcasters, like CBS, demand more money for shows that their viewers – our subscribers – are watching less. In fact, CBS and the other three major networks have already lost more than half their prime-time audience in the 18-49-year-old demographic in the past decade. Our customers are fed up with these tactics. They are tired of the endless cycle of price increases and blackouts. They want innovation and better choices. AT&T agrees.”
According to “three people familiar with the matter” who spoke with a reporter at The New York Times, AT&T has been paying CBS an average of a little more than $2 for each subscriber every month. The new agreement CBS wanted saw monthly payments of roughly $3 per subscriber from AT&T.
Meanwhile, the pro-MVPD American Television Alliance seized on the CBS “blackout” on DirecTV and U-Verse by launching a new advertising campaign that’s tied to “a significant push” by the ATVA urging Congress to act on reforming outdated video marketplace laws. The ads being used can be viewed at https://www.
BLACK ROCK, BLACK SCREEN
While the loss of CBS O&Os to AT&T’s consumers is getting the attention of the national press, the troubles for CBS go beyond its O&Os when it comes to retrans negotiations involving the DirecTV, DirecTV NOW and U-Verse parent.
As such, the “blackout” of CBS stations is much bigger — and a potential crisis for the company reportedly nearing a reunification with Viacom.
As the clock struck 12:00am on Thursday, July 4, DirecTV and AT&T U-Verse “unilaterally” dropped more than 120 Nexstar stations across 97 U.S. market, a Nexstar communique said.
Each side assailed each other for the “blackout,” which will enter its fourth week on Thursday evening, should a resolution not come between now and then.
This means that, in addition to the CBS O&Os listed above, CBS programming is also being blocked to DirecTV, DirecTV NOW and U-Verse subscribers in dozens of other top DMAs:
- PORTLAND, ORE.: KOIN-6
- RALEIGH-DURHAM: WNCN-17
- GREENVILLE-SPARTANBURG: WSPA-7
- LAS VEGAS: KLAS-8
- BIRMINGHAM: WIAT-42
- ALBUQUERQUE-SANTA FE: KRQE-13 and satellite stations KREZ-6 in Durango, Colo., and KBIM-10 in Roswell, N. Mex.
- BUFFALO-NIAGARA FALLS: WIVB-4
- PROVIDENCE: WPRI-12
- FRESNO: KGPE-47
- MOBILE: WKRG-5
- WILKES BARRE-SCRANTON: WYOU-22
- GREEN BAY, WISC.: WFRV-5
- CHARLESTON-HUNTINGTON, W. VA.: WOWK-13
- SPRINGFIELD, MO.: KOLR-10
- ROCHESTER, N.Y.: WROC-8
- CHAMPAIGN-SPRINGFIELD, ILL.: WCIA-3
- JACKSON, MISS.: WJTV-12
- MYRTLE BEACH, S.C.: WBTW-13
- QUAD CITIES, IA-IL: WHBF-4
- TRI-CITIES, TN-VA: WJHL-11
- FORT WAYNE, IN: WANE-15
- ALTOONA, PA: WTAJ-10
- GREENVILLE, NC: WNCT-9
- LANSING, MICH: WLNS-6
- PEORIA-BLOOMINGTON, IL: WMBD-31
- SIOUX FALLS, S.D.: KELO-11
- LAFAYETTE, LA: KLFY-10
- YOUNGSTOWN, OH: WKBN-27
- COLUMBUS, GA: WRBL-3
- LUBBOCK, TX: KLBK-13
- MINOT-BISMARCK-DICKINSON-WILLISTON, N.D.: KXMA-2.2, KXMB-12, KXMC-13 & KXMD-11
- WHEELING, W. VA.: WTRF-7
- BLUEFIELD, W. VA: WVNS-59
- ABILENE, TEX.: KTAB-32
- HATTIESBURG, MS: WHLT-22
- RAPID CITY, S.D.: KCLO-15
- MARQUETTE, MI: WJMN-3
- GRAND JUNCTION, CO: KREX-5
- SAN ANGELO, TEX.: KLST-8
This means some 56 DMAs across the U.S. are impacted by AT&T’s prevention, by law, of bringing CBS programming to viewers.
Meanwhile, DISH Network subscribers in markets such as Phoenix and Fort Myers, Fla., can’t get CBS programming.
That’s because DISH and Meredith Corp. on July 16 failed to reach a new retransmission fee agreement.
Of the 12 markets impacted by this “blackout,” seven are home to CBS affiliates:
- Atlanta: CBS affiliate WGCL-46
- Phoenix: CBS affiliate KPHO-5 and “AZ Family” news-intensive KTVK-3
- St. Louis: CBS affiliate KMOV-4
- Kansas City: CBS affiliate KCTV-TV and non-affiliated KSMO-TV
- Hartford-New Haven: CBS affiliate WFSB-3
- Flint-Saginaw, Mich.: CBS affiliate WNEM-TV
- Springfield-Holyoke, Mass.: CBS affiliate WSHM-TV, FOX affiliate WGGB-DT and ABC affiliate WGGB-TV
Perhaps worst off are DISH subscribers in Southwest Florida. As exclusively reported by RBR+TVBR, one of the nation’s most prolonged — and quietest — retransmission fee disputes continues more than six months after it began.
While it is ultimately up to Meredith Corp., WINK owner Fort Myers Broadcasting Company, and Nexstar to reach new deals that impact all of their stations, it is CBS viewers that are losing out across the country.
When each resolution will be resolved in anyone’s guess.
