Cable television big names Time Warner Cable Inc. (TWC) and CBS Corp. decided to extend the deadline of a new agreement to continue using the second biggest U.S. cable provider to carry the television network.
The two companies have agreed to move the deadline to July 25, 9 a.m. New York time, from the previous cutoff of tomorrow at midnight.
According to Time Warner Cable spokeswoman, Maureen Huff, the deadline of the deal was rescheduled because the July sweeps season, when advertising prices are computed based on ratings, ends early on the 25th.
The companies have not reached a conclusion because CBS, New York-based broadcast channel, wants higher fees for the retransmission of its programming. This has resulted to increased pressure for Time Warner Cable, a pay-TV company. The company must now consider whether to pass CBS on to consumers and suffer a backlash or agree to the increased fees.
Les Moonves, CBS Chief Executive Officer, stated in a memo to employees earlier today that there remains a "very real threat that Time Warner Cable is going to drop our stations in New York, Los Angeles and Dallas."
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