CBS, a broadcast network in the US, took its conflict with Time Warner Cable into the online community. CBS blocked the access of the cable operator's clients from New York and Los Angeles. The customers were not allowed to watch the shows on the company's website, CBS.com.
The move was CBS' response to Time Warner Cable's decision to dump CBS from its network in the said markets. The two companies started having a dispute due to the fees that Time Warner Cable needed to pay so that it could carry the network.
"They are in the cable programming business, not the broadcasting business," Public Knowledge, a consumer advocacy unit, said while making a comment regarding CBS' decision to block the online access of consumers. "It is no longer clear why broadcasters of this kind should continue to hold the billion-dollar licenses the public gave them for free, if they no longer want to use them for their intended purpose."
"As soon as CBS is restored on Time Warner Cable systems in affected markets, that content will be accessible again," CBS stated.
CBS currently earns less than US$1 monthly per subscriber from Time Warner Cable. The former demanded to raise the amount to the US$2 range for their next contract with the cable operator.
Time Warner Cable stated that CBS wanted to raise the fee by up to 600%. Time Warner Cable added that the figure accounted for the average cost that the company currently pays for every CBS station. Subsequently, CBS said that in 2012, it earned US$250 million from retransmission fees. It anticipated to earn around US$1 billion by 2017.
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