Today, the head of Time Warner offered a new deal to CBS. Time Warner would offer CBS but would require an additional fee for customers on top of their monthly bills. This way, subscribers would be the ones deciding whether or not CBS programming is of value to them. CBS has not yet accepted or refused the proposal.
Also, Verizon Fios, Time Warner’s competitor, recently stated that it has been receiving an increasing number of Time Warner customers looking to switch their service.
How do you think this will affect Time Warner’s overall revenue and leverage in negotiating with CBS?