Donate Today! Help us help others.

Lynch Coaching


Tuesday, July 10, 2012

Comedy Central, MTV, Nickelodeon among channels DirecTV may lose

SpongeBob SquarePants
DirecTV subscribers could lose such popular shows as "SpongeBob SquarePants" as early as midnight tonight due to its contractual impasse with Viacom. (Nickelodeon / July 10, 2012)

DirecTV subscribers may lose popular channels owned by Viacom Inc. including MTV, Comedy Central and Nickelodeon as early as Wednesday if the two companies are unable to come to terms on a new distribution deal.

Viacom said on its website that its current contract with DirecTV expires at midnight Tuesday and no agreement is near.

"Despite our best efforts, DirecTV has rejected all of our proposals to renew our agreement," Viacom said, adding that the latest offer from the satellite broadcaster is for a lower rate than Viacom said it gets from any other distributor in the industry.

DirecTV, which has about 20 million subscribers around the country, countered that Viacom is being greedy. Viacom wants a 30% increase, or an additional $1 billion, to carry its channels, DirecTV said in a statement.

Although the current pact expires at midnight, DirecTV said it is willing to continue carrying the channels while the two sides negotiate, but Viacom has resisted that offer.

Fights over new agreements between programmers and distributors are commonplace in the industry. Typically, a deal is reached without viewers losing service, but it does happen on occasion. Satellite broadcaster Dish Network, for example, recently stopped carrying AMC and its sister channels as part of a dispute.

Besides Comedy Central, MTV and Nickelodeon, other Viacom channels include Spike, VH1 and TV Land.

While negotiations appear stalled, later this week Viacom Chief Executive Philippe Dauman and DirecTV chief Mike White will both be at the Allen & Co. conference in Sun Valley, Idaho, so maybe they can get some alone time to hammer out a new deal.

From the LA Times Company Town Blog


Jess Kobayashi said...

So I wonder what this really means, will the 20 million Direct TV subscribers actually unsubscribe and join either the new prisim or COX network? Will there penalties for breaking contracts? Amazing how a simple contract negotiaton can have such a huge impact on 20 million peoples lives. Are we so enthralled with our current programs that the mere thought of losing a few episodes of the Jersey Shore or Walking dead could send us into hysterics? Probably! Television is such an integral part of lives I can only imagine the issues that will come of this. Not to mention the influx of online viewers who will now be forced to watch their favorite programs via computer or mobile device, which I guess could be quite beneficial to some other companies. WIll these networks start charging? I wonder if ratings will be affected and that could mean cancellations of popular shows, actors not renewing contracts, and the end of cable television as we know it!! Well, not really, but I am sure the after effects of this will be much greater than expected. Who will come out being the "bad guy"? Direct TV or Viacom? Hmm...
- Jess Kobayashi

Anonymous said...

Picture this... a child of eight or nine turns on the television, expecting the loud pitch of Spongebob pleasantly conversing with dull half witted Patrick, but much to her her chagrin, the last episode had been aired the day prior. Oh no! What is a child to do? She flips frantically through the channels in disbelief when a light flashes in the corner of her eye. She looks to the corner of the room where the light had come from the moment before. There is a table next to the window, where the warm sunlight is beaming through on a lonely book that has been patiently waiting for this day. Then through the window comes the sound of children experiencing the outdoors for the first time.

...and despite Viacom's best efforts, the children of today would then too reject all proposals to renew their original agreement.

Jessica Pena (who lives in a dream world)
Com 101

Austin Rains said...

there is no reson viacom should make people charge more for there channels its just another corperation wanting to milk there customers for more money im glad i have direct tv and enjoy them thinknig about there customers unlike viacom.

Anonymous said...

I think Direct TV is cutting them for a while until the channels give in to the demands of Direct TV.

Devin Murtaugh