CBS, Dish play nice, set new distribution deal after market blackout

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CBS and Dish Network reached an agreement over a new distribution deal, both companies announced on Saturday, bringing an end to a long running saga that culminated in a brief programming blackout on Friday.

For months, the companies have sparred over the monthly price per subscriber the satellite operator, which has 14 million subscribers, would pay to carry CBS.

The dispute, and the failure to reach a new deal before a deadline lapsed, led the Tiffany Network to play hardball by yanking its programming from Dish networks in New York, Los Angeles and other large markets late Friday evening.

However, negotiators managed to hammer out a deal late into the night, and was announced early Saturday. In a joint statement, the broadcast powerhouses said they had reached a multi year deal that lets Dish carry CBS-owned TV stations nationwide. The agreement also covers CBS's sports, on-demand and premium content channels.

"We are very pleased with this deal, which meets all of our economic and strategic objectives," said Ray Hopkins, President, Television Networks Distribution, CBS Corporation, in a statement. "We look forward to having DISH as a valued partner for many years to come."

Financial terms of the deal were not disclosed, and the companies said the new agreement would resolve all pending litigation between the two.

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On Friday, talks between the two broke down after two extensions to the contract's initial Nov. 20 expiration that allowed the companies to extend negotiations and keep CBS and its Sports Cable channel available to Dish's 14 million subscribers.

--Reuters contributed to this article.