CBS and Time Warner Cable Clash at Your Expense

As the CBS vs. Time Warner Cable blackout stretches into a second full week, a chorus of commentators, lawmakers and consumer groups has taken pains to blame both sides — or at least that’s what they say they’re doing. But many of these critics have focused on CBS’ exorbitant demands and ignored the real culprit: the cable-TV business model.

Fights like this stem from “retransmission consent fees” that broadcast stations can charge cable to carry their signals. These fees have become big business, making stations less dependent on ad revenues. Research firm SNL Kagan estimates that broadcasters will rake in $3 billion in retransmission fees this year, rising to more than $6 billion by 2018. Retransmission squabbles have become more common in recent years, but details about the actual sums changing hands are hidden from the public. There’s a way to break this stranglehold, one that both CBS and TWC acknowledged in their war of words: offering consumers an a la carte option. Needless to say, this idea is unpopular among those in the entertainment industry who profit most from the current system. Fortunately, Sens. John McCain and Richard Blumenthal are co-sponsoring a bill that would give consumers the freedom to buy channels on an a la carte basis. Cable and broadcast titans use their leverage however they can at the bargaining table. An la carte option would finally give consumers control over what they buy and watch on cable and online — letting them decide for themselves how much channels like CBS are worth.