As the deadline nears in AT&T’s carriage dispute with CBS stations, the telecom giant is accusing the broadcaster of trying to “up-sell” customers to subscription streaming se…
The current contract between CBS stations in 14 markets, including New York and LA, and AT&T-owned satellite giant, online offshoot DirecTV Now and U-verse cable systems expires Friday at 11PM PT. The spat comes at the same time that local stations owned by Nexstar have also hit an impasse with AT&T, leaving the stations dark for the past two-plus weeks.
In a lengthy statement, AT&T said it “offered to pay CBS an unprecedented rate increase and the highest fee we currently pay to any major broadcast network group. CBS has refused.”In addition, the company said its request to be allowed to sell CBS All Access, in the way that Amazon, Roku and Apple do, was denied.
AT&T went on to assert that “CBS is intent on blacking out any home that chooses to receive cable or satellite service to up-sell CBS All Access subscriptions.” According to AT&T, CBS has said publicly that it “priced All Access that much higher to capitalize on customers it can capture from cable, satellite or other means of distribution.” The service costs $6 a month with limited ads and $10 a month for the ad-free version.
A source familiar with the deal terms tells Deadline one reason for the friction is that the contract that is expiring has run for seven years, an eternity by this decade’s fast-changing standards. The rate increases can be seen as dramatic in 2012 economics but not in 2019.
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