DirecTV Backs Time Warner Cable Over CBS Fee Dispute

(RTTNews) - Satellite television company DirecTV Inc. (DTV) on Saturday said that it applaud Time Warner Cable Inc. (TWC) for fighting back against CBS Corp.'s (CBS, CBS-A) exorbitant programming cost increases.

DirecTV said it is also appalled to learn that CBS is now punishing DirecTV customers, who may happen to have Time Warner as their Internet provider, by denying them access to CBS content online. The conduct of content companies in their efforts to extract outrageous fees from distributors and consumers may have reached a new low.

On Friday, CBS Corp. said in a statement that the owing to the Time Warner Cable blackout, Time Warner Cable subscribers would not get to watch the CBS Sports' live golf coverage beginning on August 3, and CBS Sports' coverage of the season's final major, the PGA Championship, beginning August 8 and continuing through final-round coverage on August 11. The negotiations between the companies failed to reach an agreement over fees.

Time Warner Cable said that it had agreed to extend talks until Tuesday morning but that CBS "refused to have a productive discussion." The cable operator added that it continues to fight hard to keep their prices down.

In the statement, CBS had accused Time Warner Cable of negotiating "in a combative and nonproductive spirit…while maintaining antiquated positions no longer held by any other programming distributor in the business."

CBS Corp had said that Time Warner dropped CBS in New York City, Los Angeles, Dallas and several other markets. The company said that its an 'ill-advised action', and feels that Time Warner conducted the negotiations in a pointless way.