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The Boston Globe

Business

Deal ends blackout of CBS channels

NEW YORK — TV network CBS and cable provider Time Warner Cable have ended their payment dispute, and they expected programming to resume in millions of homes Monday night.

The agreement ends a monthlong blackout of CBS and CBS-owned channels, including Showtime Networks, CBS Sports Network, and the Smithsonian channel, that affected more than three million homes in Dallas, Los Angeles, and New York and began Aug. 2.

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The companies were at odds about how much Time Warner Cable Inc. would pay for CBS Corp. programming. Terms of the deal were not disclosed.

The disagreement came at a touchy time for networks and cable companies, as more and more Americans are turning to alternative ways to watch TV, including online or via Roku boxes or Apple TV.

The agreement includes retransmission fees the cable operator pays to CBS per subscriber, which had been a sticking point.

Added pressure was on the two companies to reach an agreement since the start of football season and the US Open tennis tournament had begun in New York.

The blackout affected about 1.1 million of New York’s 7.4 million television households that get CBS. An estimated 1.3 million of 5.6 million households in Los Angeles were blacked out, along with 400,000 of Dallas’s 2.6 million TV homes, CBS said. Those are three of the nation’s five most populous television markets.

CBS estimates the blackout cuts the network’s national viewership by about 1 percent.

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