TWC VS CBS: Fight Over Retransmission Fees

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July 19 (Bloomberg) -- Bloomberg's Jon Erlichman and Cory Johnson discuss the possible outcomes of the fight over retransmission fees between Time Warner Cable and CBS on Bloomberg Television's "Bloomberg West." (Source: Bloomberg)

Time warner cable, what is up with that?

600 is what they are talking about possibly.

Some folks in new york or los angeles may have seen some the commercials running right now that are warning them that sold their favorites shows may go black.

Some people are wondering, did we just go through this a while ago where the content craters and cable companies were battling over these fees?

Perhaps cbs has been a little nicer in the process.

This is become an important part of the content business.

When all of these companies talk about cutting -- when all of these companies are talking about content being king, they can also get the entire fee from the pay-tv provider.

We have entered this world where the cable channel themselves generate huge fees.

The networks are saying, hold on, we spend all this money on the content and in some cases our fees do not look that great.

Behind the negotiations, cbs is saying and some of the markets what you are paying us compared to cable channels is relatively low.

I want to goes public and say they are complaining and air their dirty laundry.

It is good for us.

We are thankful for stories every day.

When you look at these guys, or is something inherent about the value that time warner gets out of these guys.

People realizing that people watch this our local advertisers has greater value.

Cbs thinks they can charge more not that they have higher costs.

I think that everybody looks at where the money is being made and decides at the end of the day, they each want to get a bigger part of it.

The additional part of the storyline is if these fights go on and hypothetically you have blackouts in some markets because they cannot get to the right number of what they think is fair, one of the big questions is when you see more people say forget it, i am paying $200 a month, i can get a netflix subscription.

It is hard to say.

One of the big factors that will play for everybody is sports programming which of course you cannot get live sports on netflix.

One analyst we spoke with today said, football season, maybe everybody will work something out so we can all watch our favorite teams.

Jon erlichman, thank you.

This text has been automatically generated. It may not be 100% accurate.

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