CBS, AT&T sign multi-year contract, ending blackout

CBS and AT&T signed a new multi-year content carriage agreement, ending a 20-day blackout that began when the previous, seven-year deal expired last month.

As a result of the contract dispute and after months of negotiations over retransmission fees, CBS stations went dark for more than 6.5 million DirecTV, DirecTV Now and AT&T U-verse customers in at least 14 US cities, including New York, Los Angeles and Chicago, beginning July 19.

The agreement includes retransmission consent for all 26 CBS-owned stations in 17 markets including New York, Los Angeles, Chicago and San Francisco, the companies said.

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The companies did not disclose the terms of the agreement.

The two sides negotiated over pricing, as well as whether AT&T could sell CBS’ All-Access streaming service as a separate option and whether CBS would be required to produce programming such as the Grammy Awards in a higher-than-typical 4K resolution, according to sources familiar with the negotiations.

They also negotiated on whether CBS would provide AT&T with past episodes and entire seasons of shows, and whether CBS content would be available to all DirecTV consumers, according to the sources.

CBS is one of several networks — including sibling company Viacom, A&E Networks (owned jointly by Hearst Networks and the Walt Disney Co.) and Nexstar — to publicly feud with AT&T over contract negotiations this year.

The contract dispute comes at a time of uncertainty for CBS and transition for AT&T. CBS is considering a merger with Viacom. AT&T bought Time Warner — which it renamed WarnerMedia — for $85 billion last year, and is preparing to launch its HBO Max streaming service in spring 2020.