Saturday, July 20, 2019

The alternatives to agreement determine the terms of agreement

AT&T's DirectTV (distribution) has failed to reach agreement with CBS (content).   The absence of CBS programming on DirectTV could cause DirectTV to lose subscribers:

CBS could gain more leverage during negotiations if the blackout drags on for more than a month. CBS has rights to broadcast National Football League games, popular programming for viewers across the U.S. CBS coverage of the regular season starts on Sept. 8, with the preseason beginning on Aug. 18.

However, DirectTV has some alternatives to CBS programming.

A person familiar with AT&T’s plans said the company is planning to direct its customers toward alternatives such as Locast and local channel connector devices that will allow them to watch NFL games.
 These alternatives to agreement will ultimately determine how profit is split between AT&T and CBS

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