CBS, Dish reach multiyear content distribution agreement

CBS Corp. and Dish Network Corp., a day after negotiations broke down, agreed to a multiyear contract putting the most-watched U.S. network back on the air for Dish's 14 million satellite-TV subscribers.

The agreement ends a blackout that was imposed in New York, Los Angeles and other major markets at 7 p.m. New York time yesterday, CBS and Dish said in a statement. Terms weren't disclosed.

The blackout, in markets where CBS owns stations, highlights the growing divide between pay-TV services like Dish and media companies like CBS and Time Warner Inc. that are seeking higher rates for programming in every new negotiation. Programmers are also seeking compensation for digital services like the one Dish is trying to start.

"We are very pleased with this deal, which meets all of our economic and strategic objectives," said Ray Hopkins, president of television networks and distribution for CBS, in the statement.

Adding to the stakes, Dish has been seeking rights to stream TV over the Internet to computers, tablets and phones. Dish plans to be one of the first pay-TV companies to start a streaming service. The company made a deal with Walt Disney Co. in March to gain online rights for the Disney Channel, ABC and ESPN.

Today's agreement also includes Showtime TV Everywhere and video-on-demand rights, the companies said.

--With assistance from Dan Hart in Washington.

To contact the reporters on this story: Scott Moritz in New York at smoritz6bloomberg.net; Lucas Shaw in Los Angeles at lshaw31bloomberg.net To contact the editors responsible for this story: Sarah Rabil at srabilbloomberg.net Sylvia Wier, Maura Reynolds