Will CBS Lose its Place on the TV Dial?

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July 29 (Bloomberg) -- Manatt, Phelps & Phillips Partner George Cooke and Bloomberg's Paul Sweeney discuss the fight between CBS and Time Warner Cable over higher fees with Tom Keene and Sara Eisen on Bloomberg Television's "Market Makers." (Source: Bloomberg)

It is cbs goes away, everybody goes mental.

It jeff zucker wants to go take over channel two because it is a cool slot.

What is happening at these meetings?

Is it arguing?

Is that a quiet event?

These are professionals but it is all the time.

They have a series of these negotiations that tend to come up midsummer or at the end of the year.

It right now, they're trying to close in money gap and they may be arguing about rights.

My sense there is not a lot of anger.

There are many telephone calls going on between the people at the table and those calling the shots.

Cracks are the complex or simple negotiation?

The dax -- are they complex or simple negotiations?

They are complex.

Prices will go up per subscriber.

How much?

We are talking about cents in some ways.

It is a per subscriber fee that can very tense and, and 30¢, and if you multiplied that across a million subscribers over the course of time, it is a lot of money.

How far apart are the two sides?

Tom may not be able to watch big brother tonight.

I think they are very far apart.

Just a few years ago, the broadcasters did not get a penny from the cable distributors.

Now they're coming back and saying, you are paying espn $5.50 per subscriber and my audience is just as big, if not bigger.

Why do i not get any?

Cracks because you can put a big antenna -- because you can put a big antenna on your television.

90% of a country gets their programming from a distributor.

The broadcasters of the world have a real argument.

They bring a very big argument -- audience.

On the flip side, the number one challenge is managing programming costs for cable.

Programming costs are going up here four times the rate of inflation.

It is a tough business model for them.

Does that mean that the cbs's of the world has an argument?

-- have an argument?

Correct i think in the end, it is their content.

It is essential for them to have that content available.

They're under a lot of pressure in terms of alternate distribution means.

What about aereo?

People who are employed, right?

At this point, it is a tiny factor in terms of actual economics.

A very small number of subscribers.

But it is part of the future movie out there in terms of different ways to get your content.

The bottom line is that we are still on cable and i want to be on channel two.

To me, that is a no-brainer.

When there were not so many channels, it was a huge deal to have 10 channels.

Sure, but come on, channel two, it is easy.

But with new user interfaces, it is swiping a screen and clicking icon on the screen as opposed to standing up and turning on channel to about.

Correct -- my channel changer with a pair of pliers.

When was the last time you watched tv?

From the consumer's point of view, there are aware of this.

It is getting pretty nasty.

Who do consumers side with?

I can tell you are like my shows, but i don't like my cable bill.

It is important to keep in mind that not only is this cds, but also showtime.

They have very compelling programming and very loyal viewers.

I think there's a lot of pressure on time warner cable to get this deal done.

It is a lot more pressure.

It for cbs, it is money on the bottom line that disappears if there is no deal.

For time warner, it is more of a strategic position.

Where will we be in five years?

Would be watching netflix?

I think that it will still be the dominant station that people turn to, but it will be a very wide range of access to programming.

George, thank you.

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


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