After blackout, CBS and Dish agree to new contract terms

CBS programming was briefly blacked out for millions of Dish Network customers on Friday night. The blackout was not an accident or a technical difficulty, either. On the contrary, Dish pulled the plug on CBS programming when, according to Fortune magazine, contract negotiations between the two companies “reached an impasse.”

Evidently, though, the blackout accomplished what Dish Network wanted it to. By playing hardball, Dish got the attention of CBS executives. By Saturday morning, the two parties had settled their contract disputes, and CBS programming was back for Dish Network subscribers.

A report published this morning by the Wall Street Journal says that CBS and Dish have “reached a new carriage agreement” that will allow Dish to carry CBS channels nationwide. These channels include the actual CBS network (with popular shows like The Big Bang Theory and Two and a Half Men), as well as the CBS Sports Network, the TV Guide Network, the Smithsonian Channel, and the Showtime premium channels.

Financial terms for the new contract were not disclosed, so it is not clear which of the two parties bent to the will of the other. Dish last night blamed CBS for the blackout, arguing that it no longer had the legal right to broadcast the company’s channels or shows without a contract. CBS, meanwhile, urged viewers to contact Dish and protest the blackout. Both parties said that they were pleased to once again be partners.

The new contract will be coupled with the dismissal of a pending lawsuit between the two companies. CBS had previously sued Dish for a video recording feature that allows users to tape shows and easily skip commercials. CBS and numerous other networks (including Fox and ABC) took issue with the feature, since commercials are obviously key to network television revenues. A compromise between CBS and Dish will dismiss the suit, but still allow Dish users to skip commercials on recorded CBS programming. The catch is that commercial skipping will not be an option until seven days after a program’s original air date.

Dish did not get everything it wanted, though. The Wall Street Journal says that Dish is planning to launch an online video service in the coming months. The company will have to do so without CBS shows, however, as CBS did not grant Dish those rights.

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