Why isn't CBS on AT&T?
CBS and AT&T Internet are arguably in a contract disagreement in which CBS stations have been pulled out from AT&T streaming services across the United States. Here is an explanation of what is going on and why CBS is not available on platforms like DirecTV and AT&T TV Now.
The Preposition of the Conflict
CBS and AT&T are in the middle of a discussion to determine the prices at which rights for carrying CBS’s broadcast channels will cost AT&T. Such negotiations take place often in the context of pay-TV because many network affiliation agreements are renewed from time to time.
Still, with this round of negotiation between CBS and AT&T, the two parties were not close to agreeing on a new deal. CBS demanded a large increase in the rate arguing that its highly-rated broadcasts are priceless and their value has increased over the years. On the other hand, AT&T sought a lower rate than they were currently paying stating that the network advertising model that sustains CBS’ primetime shows is gradually becoming irrelevant with the emergence of SVODs.
There was no consensus by the end of the prior affiliation agreement on July 19, 2019. Therefore, all CBS stations in the different markets across the United States were removed from AT&T distribution services such as the satellite supplier DirecTV, the streaming television supplier AT&T TV Now, and the cable supplier U-verse. This has affected millions of AT&T users who cannot watch CBS programs through their television service provider.
Why the Stakes Are So High?
The effects of these CBS-AT&T negotiations are not only far-reaching in terms of economy and power relations in the pay-TV market.
CBS is eager to get what they believe is their deserved remuneration for their most-watched programs such as NCIS, The Big Bang Theory, 60 Minutes, and NFL football. They require this fee revenue to continue making large investments in new shows and news operations. Allowing these fees to drop may lead to a vicious cycle, least to say quality content may be compromised.
However, programming costs have also gone up and AT&T has adopted an aggressive posture in what it offers for its satellite and streaming television services. Since buying Time Warner in 2018, AT&T also now has a significant content arm in WarnerMedia. As the distributor and programmer now, AT&T has taken a stand in fighting against the hike in content costs.
Both do not wish to cave in initially in such elaborate bargaining sessions, giving rise to protracted power outages like the current one with CBS.
The Impact on Viewers
While this is a conflict between two corporate giants, it is not entirely abstract as it has consequences for normal television viewers. To the individuals who depend on AT&T for their pay-TV service, they are locked out of CBS programs and live local news. This can lead to dissatisfaction, migration to other service providers, and cancelation in general.
Half a year later when the blackout shows no sign of ending, both sides have only provided justifications for their current stance on the negotiation process. CBS states that they will obtain the rates they are worth, while AT&T stated that they are struggling against higher prices consumers have to bear.
The viewers find themselves in the middle of this revenue tug-of-war. Their TV screen turns black and they have no access to local news and shows, but they continue paying the bill every month for TV. Numerous customers claim that AT&T should pay CBS’s demands, offer higher rates, and retain the stations accessible, even if it is at the company’s Seniors, Low-Income families, and homes with children’s expense. Others opine that “enough is enough”, the continued frequency of rate increases only adds to inflation in many industries and is not consistent with America’s Cost of Living Index.
Potential Resolutions
Experts state that this conflict may take some time. However, one side may get concerned enough with the diminishing viewership and revenue to push the first to compromise on matters such as payment rates. Lawmakers also have the flexibility of becoming more actively engaged should the public agitation over the blackout escalate. It is important to note that consumer advocacy groups have already made demands concerning some of the rules on the ‘good faith’ requirements in contract matters.
Finally, regardless of who wins these negotiations, the eroded relations and consistent subscriber losses stemming from long blackouts may hurt both entities. Most hope to witness further cooperation between distributors and content owners in the future to eliminate such interferences. A stable and affordable TV ecosystem will have to be managed jointly to avoid a rapid increase in cord-cutting.
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