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CBS is back.
From black out and now back on the air and broadcasting -- eight major markets including new York and LA this after a month of darkness since.
Finally deals reached between CBS and Time Warner Cable and -- -- now with their -- got.
Mobile and IQ and -- Kaplan of the sports business journal -- let's start with you let's get the important part.
Both sides here declaring victory.
But only one side really could win so what.
Sure I think because CBS.
Emerges in this as I think clear winner Tom I think you get a sense from -- shares that react and what Wall Street -- some of the outcome of this of this battle.
How to send I think the final resolution was somewhat.
It compromise -- com I don't think CBS got all of what -- when lasting for.
But I think they got probably doubled the per monthly subscriber fees that would get in.
Time Warner Cable on -- I -- I think they have resolution of this issue just before the NFL season was -- it was a major outcome for them because at odds we're getting stacked against then I -- got closer to football.
You know how to -- I think this is definitely.
Come from an analytical perspective we think both parties can at least point to something.
Enough for a positive in this era that's why we we see the both shares up about where it would like -- -- would like Time Warner Cable.
Do you like on both ends but CBS so far up today it has been more than twice as much as Time Warner cable's up.
But your mention of football's a good -- to -- our sports guy and again I think in the NFL played some kind of role in fourth and these guys to finally stop spit on each other.
Well look look CBS fox they have parent of this network NBC they pay billions of dollars now every year.
To error the National Football League -- -- doesn't figures on that the show keep going right it's the top rated entertainment programming in America bar not.
If you're CBS you need to recapture that money you have to find a way to get that back you're not ESP and you can't hit cable subscribers with.
I think was like five dollars and 71 cents a month he don't have that the big ways retransmission fees advertising.
And retransmission -- look like we'll just keep going up.
Yes CBS alone expects them to double act CVS -- I think when he seventeen.
-- -- Let's talk what happens next though it seems to me every station group in the country will now go to their local cable system and say I want a double like -- -- the next few years and -- would got more than fifty.
With -- would would deals coming up with Time Warner Cable what do you say.
Tom what I think you're right in the sense that you know this deal is gonna emboldened -- a lot of other local stations to us from more money but that's already happening Denny's come.
You know what were very fearful off is the what we think is going to be a backlash.
From a consumer and regulatory perspective.
You've got several other major deals coming down for example.
You know toward the end of this month as -- -- expires.
I'm so I think what's happening now is really a paradigm shift where you know the content provider is -- I've never been stronger in the ecosystem.
You know -- distributors on the other hand are really playing these -- game you know one has the -- -- this happens to Time Warner Cable the single largest cable operator.
You know what about the you know -- leader -- You know -- -- if not hundreds of on the cable operators out there.
I'm gonna going to be facing.
You know CBS and other content providers say the odds are really shifted in favor of the content providers more anti yeah I think you know the.
OK let's get -- back in here.
You know one reason the FCC didn't step B&B is because they don't have a lot of full authority over cable systems and tell them what to do although they've tried they've lost three -- court rulings enthusiast.
'cause they -- that step into the Internet access came upon the cable guys.
But now Time Warner Cable saying we've got to rein in these broadcasters we've got to go to congress -- -- the outlook for that it did well.
Look congress -- try to get involved -- cable pricing for years John McCain has advocated an ala -- Pricing model sometimes -- W knows it worse than W don't some -- -- dollar -- would make it worse for cable consumers.
But clearly sports is driving a lot of this newest sports drove that be the retransmission fee increase here.
And it is and not it's not fair to those who don't watch sports and that's probably what 7080% of -- who don't watch for the all the their -- -- -- chip and that five dollar and that's right AM ET and V and you can take it either way immediately you know -- network -- or these channels of sports fans don't watch that they also pay for but clearly sports is heating up a bigger and bigger.
Portion of the cable bill and at some point the FCC congress you would expect to finally step into this.
This yet they tune up I want congress and the FCC to stay the heck out of it because often they messed things up when they step in.
But do you think they are gonna step in here.
I think they would probably.
Not stepping directly I didn't know that I -- -- adapting -- guys up over there recognize any free mark Kate.
You know business.
Kind of negotiation is always you know the best.
With the cable prices rise in -- multiple race over inflation.
I think this is probably going to force the hand of regulators to at least.
You know begin to reduce it some of these regulations that have been out there for seven decades and there's no question that they need to be -- -- -- -- -- question -- the issue is.
Not -- win but you know how far do they kind of pushed goes which right now seem to be somewhat favor favorite broadcast next CBS.
Okay and would go did that cost the CBS which appears to one this one.
Could be when the FCC and congress step -- and starts back in those broadcasters around.
To stop more he fights and in which case both sides could ultimately really lose if they ever go Allah cart guys.
I mean it could just destroy the cable industry have wiped out of hundreds of little tiny channels.
Didn't some -- is the end thanks so much -- being with a save both you tune -- Moby and Dan Kaplan nice job gentlemen.
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