October 1999
"Priming The Pump": The Role of Retransmission Consent in the Transition To Digital Television
By Stuart N. Brotman

A. Time Warner Cable

The current largest cable MSO, Time Warner Cable, has reached agreement with the 15 CBS owned-and-operated stations. Moreover, this agreement provides a model framework under which local Time Warner Cable systems can carry the digital signals of CBS affiliates that are not owned-and-operated stations. Thus, the import of this agreement is that Time Warner Cable's total base of over 12.9 million subscribers can be expected to receive CBS' digital programming (See Appendix: Chart 3).

The win-win nature of this agreement, like the positive marketplace outcomes achieved in the two prior rounds of analog retransmission consent negotiations, is reflected in the statements of key executives from both sides. "If digital television is to flourish," said CBS Television Stations President Jonathan Klein, "broadcast television and cable companies must work together to make sure the signal makes it to people who really count - our viewers. This agreement with Time Warner Cable is an important first step in that direction and illustrates how through cooperation we all can best serve our communities." ¹²

Joseph J. Collins, CEO of Time Warner Cable, underscored the practical importance of mutual interest between broadcasters and cable operators. "[T]his agreement," said Collins, "is an unequivocal demonstration of our commitment to provide [digital television] to our customers." ¹³

¹³ Statement of Joseph J. Collins, Chairman and CEO, Time Warner Cable, December 8, 1998.