The recent rift between
Time Warner Cable Inc.
) and TV network giant,
) has resulted in a complete blackout of CBS channels in New
York, Los Angeles and Dallas. In order to compensate the service
disruption, TWC will offer the US Open Tennis Championship Series
for free on Tennis Channel.
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The subscribers can watch 200 live matches of the series from Aug
26 till Sep 9. Moreover, the final game can be viewed for free on
) Android-based smartphones and iPhones through the US Open Live
The recent demand for higher service renewal fees by CBS has
caused Time Warner Cable to drop its channels from the former's
According to Time Warner Cable, CBS wants to raise its
retransmission fees by nearly 600%, which will not only shoot up
the programming expenses but will also deteriorate margins for
the cable company. Such an increase in expenditure will force
Time Warner Cable to charge higher rates from its subscribers.
In the beginning of fiscal 2013, Time Warner Cable hiked its
service rates. In the recently concluded second quarter of 2013,
Time Warner Cable lost 191,000 residential video subscribers.
Hence, it believes that any further increase in rates may result
in huge subscriber loss for Time Warner Cable as most low-cost
video streaming companies like
) and Hulu are offering services at a rate as low as $10 per
Currently, Time Warner Cable has a Zacks Rank #3 (Hold).