AT&T, CBS Ink Multi-Year Deal: What Does It Mean For DirecTV Customers?

Ending a 20-day station blackout, CBS Corporation (CBS) and AT&T (T) have inked a multi-year agreement that will allow the airing of the network’s local and national channels on the TV carrier’s platform throughout the U.S.

Through the agreement, CBS' stations will now return to AT&T customers, including the CBS Sports Network and the Smithsonian Channel as well as local CBS affiliates. The agreement also includes consent to air 26 CBS-owned stations in 17 markets. Terms of the agreement were not disclosed by the companies.

CBS and AT&T’s initial contract ended after seven-years on July 19. A total of 6.5 million customers lost the CBS-owned channels on DirecTV, DirecTV Now, and AT&T U-verse in at least 14 cities since that time, Reuters reported.

According to sources for the news outlet, the two companies negotiated over pricing in addition to selling CBS’ All-Access streaming platform on AT&T as well as CBS’ right to produce higher than 4K programming for coverage of events such as the Grammy Awards.

The sources also said that the two companies were trying to come to a deal whether or not CBS would offer AT&T past show episodes and entire show seasons as well as offering CBS content to all DirecTV customers.

Shares of CBS stock were up 1.79 percent as of 9:31 a.m. ET on Thursday while shares of AT&T stock were up 0.32 percent at the same time.