As Blackout Looms, AT&T Says CBS Refused Offer

With a deadline looming at 2 a.m. Saturday morning, AT&T said it made an offer to pay CBS as much as it’s paying any broadcaster to carry its signal, but it has been rejected by CBS.

If no agreement is reached, CBS’s owned stations could get blacked out to subscribers of DirecTV and AT&T U-Verse. The entire CBS network could get blacked out on AT&T Now.

AT&T also said it is seeking to sell subscription streaming service CBS All Access to its subscribers. It is also seeking rights to offer full seasons of CBS shows on demand.

Related: AT&T: Locast Is Option If There Is CBS Blackout

The two sides are still talking, but so far, AT&T said CBS has rejected those requests as well.

“It’s become clear to us that CBS is intent on blacking out any home that chooses to receive cable or satellite service to up-sell CBS All Access subscriptions. CBS has said publicly that between 2018 and the end of this year it will significantly increase prices on roughly 75% of any homes that opt to receive their content via cable or satellite. CBS has also 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,” AT&T said in a statement.

CBS had no immediate comment.

The previous deal was signed seven years ago, and retransmission consent fees have escalated since then.

AT&T is also in a blackout situation with Nexstar Media, a large station owner, and slew of smaller broadcasters.

Jon Lafayette

Jon has been business editor of Broadcasting+Cable since 2010. He focuses on revenue-generating activities, including advertising and distribution, as well as executive intrigue and merger and acquisition activity. Just about any story is fair game, if a dollar sign can make its way into the article. Before B+C, Jon covered the industry for TVWeek, Cable World, Electronic Media, Advertising Age and The New York Post. A native New Yorker, Jon is hiding in plain sight in the suburbs of Chicago.