The ongoing fee dispute between Time Warner cable and CBS reached new heights as TWC actually followed through and pulled CBS stations from three million homes in New York, Los Angeles, Dallas and in other markets. The two sides could not reach a deal by Friday afternoon’s deadline.

According to The Hollywood Reporter, TWC started blocking stations out by 5 p.m. Friday afternoon. Not only does it include CBS-owned stations, but pay stations like Showtime, FLIX and TMC. The markets affected by the blackouts are Los Angeles, New York, Dallas, Boston, Pittsburgh, Chicago, Detroit and Denver.

“We agreed to an extension on Tuesday morning with the expectation that we would engage in a meaningful negotiation with CBS,” TWC’s statement read. “Since then, CBS has refused to have a productive discussion. It’s become clear that no matter how much time we give them, they’re not willing to come to reasonable terms. We thank our customers for their patience and support as we continue to fight hard to keep their prices down.”

CBS issued its own statement, noting, “We deeply regret this ill-advised action, which is injurious not only to our many affected viewers, but also to Time Warner Cable itself. Throughout this process, Time Warner Cable has conducted negotiations in a combative and nonproductive spirit, indulging in pointless brinksmanship and distorted public positioning.”

CBS and TWC are arguing over retransmission fees, with CBS hoping to raise fees for TWC to carry its networks. TWC has said that CBS is asking too much, but CBS has claimed that it is just looking to get what it should, considering the popularity of its content. The talks almost stalled last week, when TWC did briefly pull CBS, but a last-second agreement to extend the deadline was reached.

The NY Times reports that there have been reports that CBS is looking to raise fees 100 percent. The FCC has even weighed in, saying, “We urge all parties involved to resolve this situation as soon as possible.”

CBS also took action last night by blocking videos on CBS.com for TWC subscribers.

It’s not clear how long the blackout will last, but its likely that both sides may want to reach a deal before the NFL season kicks off. Still, TWC subscribers will miss out on major PGA events, like the third round of the Bridgestone Invitational on Sunday.

image: CBS