Sling TV May Drop ViacomCBS Channels in Fresh Dispute with DISH

It appears that ViacomCBS-owned channels like Nickelodeon, BET, Comedy Central, MTV, Paramount Network, and VH1 are at risk of being dropped from Sling TV, the over-the-top (OTT) internet television (IPTV) service from Dish.

Nick Jr., BET, and Comedy Central are currently part of Sling’s Blue Plan ($30 a month), while the rest are a part of various add-ons to the Sling service. Viacom (now ViacomCBS) and Dish signed a multi-year deal in April 2016, which would appear to expire in the next week.

In preparation for a potential blackout, Sling has prepared an announcement page (that has since been removed) that says they are “fighting on your behalf to get these channels back.”

On Dish Network’s online channel guide, they had added a channel to their line-up that says “Viacom is threatening to remove your access to their channels. Visit DISHPromise.com for more information,” which has yet to be updated.

ViacomCBS' KeepViacom.com, which is utilized by the media company to warn viewers that their TV provider may be about to drop their favorite channels, has yet to be updated.

Before ViacomCBS' agreement with Dish was finalized in April 2016, ViacomCBS used KeepViacom.com on-screen lower-third graphics to warn viewers of the then-potential blackout.

The Streamable has reached out to Dish Network and ViacomCBS for official confirmation, but neither have responded for comment.

The two sides may very well come to a deal ahead of the end of the contract’s expiration, but it’s clear that it will come down to the wire. Last year, ViacomCBS had a carriage dispute with AT&T, over their carriage on DirecTV and DIRECTV NOW (now called AT&T TV NOW).

ViacomCBS channels are currently available to stream most widely on Philo ($20), as well as fuboTV ($55) and AT&T TV NOW ($55).

More Nick: Netflix and Nickelodeon Form Multi-Year Output Deal to Produce Original Animated Films and Series!

Additional source: Wikipedia.

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Follow NickALive! on Twitter, Tumblr, Reddit, via RSS, on Instagram, and/or Facebook for the latest Nick Jr. and Nickelodeon Preschool News and Highlights!

Viacom & AT&T Announce Renewed Contract; Latest Update: DIRECTV NOW to Remove Nick Jr. from Live a Little Package

Update (4/15) - It looks like the saga continues. Days after adding Nickelodeon and Nick Jr., DIRECTV NOW today started to email subscribers to notify them of some changes to their plans. According to an email sent to Cord Cutters News from their readers, as of May 14th, 2019 Nick Jr. will be removed from DIRECTV NOW’s Live a Little package.

Here is the email DIRECTV NOW sent grandfathered Live a Little subscribers:

"We’re making a few changes to your lineup that we think will give you more of what you want to stream, and less of what you don’t.

We’ve added two new channels to your lineup at no extra charge On Boomerang, you’ll find classic cartoons like Scooby-Doo, Tom & Jerry and more of your old school favorites. REVOLT, founded by Sean “Diddy” Combs, is living- and leading – Hip Hop culture through live performances, breaking new artists, original programming, live events and more.

Your Live a Little package will no longer include Nick Jr. as of 5/14/2019, but as a current customer, you have the option of keeping it To hang on to Nick Jr., chat here.

Sincerely,
Your DIRECTV NOW Team"

According to Cord Cutters News, if you want to keep Nick Jr. all you have to do is ask. Apparently they will email you a conformation.

Previous updates:

DirecTV's Summer 2012 Dispute With Viacom Dents DirecTV's Subscription Numbers

From C21Media:

Viacom row dents DirecTV subs

DirecTV has blamed its high cancellation rate during the third quarter of this year on its contract dispute with Viacom, which led to more than 20 channels removed for nine days this summer.

The satellite platform saw its US revenues for the three months to September 30 increase 6% year-on-year to US$5.77bn, up from US$5.42bn.

It attributed this to a larger subscriber base, which grew by 67,000 customers during the period. However, this was down from 327,000 in Q3 2011, a drop the company said was “due to lower gross subscriber additions as well as an increase in the average monthly churn rate.”

DirecTV’s quarterly financial statement released yesterday added: “The higher churn rate in the quarter was principally driven by a contract dispute with a large programmer that resulted in the removal of several channels for nine days in the third quarter.”

Viacom’s 26 channels, including Nickelodeon and MTV, were pulled by DirecTV for nine days in July following a row over carriage fees until a new deal was agreed later that month.

And this led to a higher-than-expected cancellation rate of 1.74%, up from 1.62% for the same period last year.

DirecTV now has a US subscriber base of 19.98 million, up from 19.76 million this time last year.

Meanwhile, DirecTV Latin America drew revenue of US$1.58bn for the third quarter, up from US$1.36bn year-on-year.

It also saw a subscriber increase of 543,000 for the three months to September 30, though this is down from 574,000 for the same period last year. The service now has 9.67 million subscribers in total, up from 7.28 million.

The platform’s Latin American business includes 93% of Sky Brasil, 100% of PanAmericana and 41% of Sky Mexico, though the latter operation is not included in these figures. When Sky Mexico’s 4.88 million subscribers are taken into account, DirecTV Latin America’s business extends to 14.55 million customers.

Overall, DirecTV’s revenues for the quarter rose 8% to US$7.42bn year-on-year, with net income of US$565m, up from US$516m.

DirecTV is currently in production on its first original scripted series, Rogue.

Michael Pickard
07-11-2012
©C21Media

TV Market Broken As Viewers Pay More, U.S. Senator Says

From Bloomberg:

TV Market Broken as Viewers Pay More, U.S. Senator Says

Consumers' television bills keep climbing and blackouts of popular programs have become common, showing that marketplace rules set in the 1990s may need to be changed, a U.S. senator said.

“Consumers are still forced to purchase larger and larger packages of channels,” Senator Jay Rockefeller, the West Virginia Democrat who heads the Commerce Committee, said at a hearing on cable regulation. “The market isn’t working. Real competition should be bringing rates down.”

The session was part of a series of hearings in both houses of Congress to consider updating laws that govern the broadcast, cable and satellite industries. No change will pass this year because the topic is complex, Rockefeller told reporters April 25.

Regulation hasn’t kept pace with the rise of satellite broadcasters DirecTV (DTV) and Dish Network Corp. (DISH), or the spread of high-speed Internet links used by services such as Netflix Inc. (NFLX) and Barry Diller’s online Aereo Inc. that provides broadcast signals without a cable subscription, lawmakers and industry officials have said.

Senator Jim DeMint, a South Carolina Republican, said Congress should repeal the 1992 law that lets TV stations charge cable providers for broadcast signals.

“It was a right created out of whole cloth to combat a cable monopoly,” DeMint said. That monopoly no longer exists after inroads from competitors, including satellite providers, he said.

Negotiating Power

Senator John Kerry, a Massachusetts Democrat, said he wouldn’t support “radical proposals” to repeal the 1992 law.

“It would result in, probably, very few broadcasters being around,” Kerry said. “I want to preserve local broadcasting.”

“There’s a real divide here, and it’s going to be interesting to see how we manage it,” Kerry said.

Service disruptions caused by disputes over how much cable providers should pay broadcasters for their signals are a source of concern and Americans “deserve answers as to why their screens have gone dark,” Rockefeller said. Consumers should get refunds when they lose channels, he said.

The incidence of blackouts has spiked as broadcasters have become increasingly willing to withhold programming during fee disputes, Melinda Witmer, executive vice president at New York- based Time Warner, the second-largest U.S. cable company by revenue, said in testimony submitted to the panel. So far this year there have been 69 instances with programming being withheld in fee disputes, Witmer said.

World Series

Cable and satellite providers are seeking federal help as broadcasters seek more fees for program carriage. Pay-TV companies paid $1 billion in retransmission fees to local affiliate broadcast channels in 2010, according to data compiled by Bloomberg.

New York-area consumers in 2010 missed games in Major League Baseball’s World Series and the opening minutes of the Academy Awards in disputes between Cablevision Systems Corp. (CVC) and News Corp. (NWSA)’s Fox and Walt Disney Co. (DIS)’s ABC.

Viacom Inc. (VIAB), owner of the MTV and Nickelodeon networks, on July 20 announced a new programming fee agreement with DirecTV, ending a 10-day blackout for the satellite-TV service’s 20 million U.S. viewers.

Other program outages affected Time Warner, Dish Network Corp. and DirecTV, the FCC said last year as it began examining rules for retransmission negotiations. The FCC doesn’t have power to demand binding arbitration or to order TV stations’ signals restored during disagreements, officials said.

Market Power

Increased competition lets broadcasters play the cable companies and other pay-TV providers against each other, Time Warner’s Witmer said. Laws don’t let cable companies buy a broadcast signal from alternative sources, leaving them to deal exclusively with local stations, Witmer said.

Stations should be able to negotiate for compensation because they provide most of the top-rated shows, Gordon Smith, president of the National Association of Broadcasters, said in testimony submitted to the committee.

“When some suggest that these laws are ripe for a rewrite, they misstate history and facts,” Smith said. Members of his Washington-based trade group include ABC, Fox, Comcast Corp. (CMCSA)’s NBC and CBS Corp. (CBS)

Broadcast stations account for 35 percent of TV viewership and receive less than 7 percent of program carriage fees, Smith said.

Rewriting Laws

TV executives are watching for signs lawmakers may rewrite the carriage laws, Paul Gallant, a Washington-based analyst with Guggenheim Securities, said in an interview before the hearing.

“Broadcasters have a fair amount of leverage to raise fees,” Gallant said. “Their concern is Congress could undercut that leverage.”

A June 27 hearing before a House panel showed that “a good number of members” want to consider rewriting the rules surrounding blackouts, Gallant said.

US Media Companies Earnings Preview: Media Firms Face Fee Fights, Ad Concerns in 2nd Quarter

From The Wall Street Journal:

US Earnings Preview: Media Firms Face Fee Fights, Ad Concerns in 2nd Quarter

TAKING THE PULSE: Despite weakness in Europe, advertising sales are growing domestically for U.S. media firms, as ad dollars continue to migrate away from print and toward electronic media, especially cable networks. However, disputes over affiliate fees with distributors and higher costs to develop new content continue to hang over the industry.

Wall Street expects major media companies to either post slightly higher earnings or modest declines amid the uncertain economy. But, Lazard Capital Markets recently said that while broad economic concerns are dominating sentiment in the industry, "We believe domestic TV advertising remains reasonable resilient," saying current fears appear worse than the actual trend.

Analysts will also look for comments on how the London Olympics and political campaign advertising are expected to help advertising revenue in the third quarter.

COMPANIES TO WATCH:

Time Warner Inc. (TWX) - reports Aug. 1
Wall Street Expectations: Analysts call for 58 cents in earnings and revenue of $6.95 billion. A year earlier, the company's profit was 59 cents a share, or 60 cents excluding items such as acquisition-related costs, on $7.03 billion in revenue.

Key Issues: The owner of HBO, TNT and CNN faces a challenge generating meaningful profit growth in an increasingly competitive television industry where program costs are rising. Its TNT channel in particular has been a drag on results, as prime-time viewership has slumped. The company has been reluctant to license video-streaming rights for much of its content--a move that has benefited some rivals--but has been pushing HBO Go, the online version of its pay-TV service. While second-quarter results from its Warner Bros. Pictures film studio should show weakness, its third quarter is expected to come in strong thanks to the release of the latest Batman movie, "The Dark Knight Rises."

CBS Corp. (CBS, CBSA) - reports Aug. 2
Wall Street Expectations: Analysts are projecting a per-share profit of 59 cents with $3.53 billion in revenue. A year ago, the company reported 58 cents and $3.59 billion, respectively.

Key Issues: The most-watched broadcaster has enjoyed improved earnings recently after signing content-licensing deals with online media companies and garnering higher programming fees. A growing international audience and a deal with AMC Networks Inc. (AMCX) to license CBS's "CSI: Miami" show also have proved lucrative.

Viacom Inc. (VIA, VIAB) - reports Aug. 3
Wall Street Expectations: Analysts expect a fiscal third-quarter profit of $1 a share on revenue of $3.5 billion. Viacom last year booked a profit of 97 cents a share, or 99 cents excluding certain costs, and revenue of $3.77 billion.

Key Issues: A continued slide in viewers at two of Viacom's flagship networks, Nickelodeon and MTV, should keep up pressure on advertising revenue. The company's Paramount film unit should also see muted sales, after the latest "G.I. Joe" movie was delayed into 2013. On a positive note, Viacom recently reached an agreement with DirecTV Group Inc. (DTV) to restore most of its channels to the satellite-TV provider after a 10-day blackout.

Walt Disney Co. (DIS) - reports Aug. 7
Wall Street Expectations: Analysts polled by Thomson Reuters expect a profit of 93 cents a share on revenue of $11.29 billion for its fiscal third fiscal quarter. A year ago, Disney reported a profit of 77 cents a share, or 78 cents excluding restructuring and impairment costs, on revenue of $10.68 billion.

Key Issues: Disney is expected to benefit significantly from its release of "The Avengers" superhero movie, which became the all-time third highest-grossing movie domestically, a welcome change for the company following the second-quarter flop "John Carter." The company has been seeing strength in its cable channels, thanks to higher programming fees and advertising sales. Disney's theme parks have also been a source of strength.

News Corp. (NWS, NWSA) - reports Aug. 8
Wall Street Expectations: Analysts expect income of 32 cents a share on revenue of $8.71 billion for the company's fiscal fourth quarter. News Corp. earned a profit of 26 cents a share, or 36 cents excluding special items, on revenue of $8.96 billion a year earlier.

Key Issues: In a move investors have long called for, the media giant plans to separate its slower-growing publishing division from its film and television businesses within a year. Chief Executive Rupert Murdoch dismissed suggestions that the split was a response to a phone-hacking scandal in its U.K. newspaper division. News Corp.'s Fox News and FX cable channels continue to exhibit strong growth, while its newspapers' income has flagged, due to lower advertising revenue at Australian publications and the absence of the News of the World, the U.K. newspaper at the center of the hacking scandal that the company shut down last year. New Corp. is the parent of this newswire.

(The Thomson Reuters financial estimates and year-earlier figures may not be comparable due to one-time items and other adjustments.)

DIRECTV And Viacom Reach Agreement To Renew Carriage Of Viacom's Networks In North America

Below is a Viacom Inc. Press Release via PRNewswire:

DIRECTV And Viacom Reach Agreement To Renew Carriage Of Viacom's Networks

All 26 Viacom Networks, Including Nickelodeon, Comedy Central, MTV, BET, CMT, Logo, Spike, TV Land, MTV2, VH1, VH1 Classic, Palladia, Nick Jr., Nicktoons, TeenNick, Tr3s and Centric, to Return to DIRECTV Immediately

Download image [of Viacom logo]NEW YORK, July 20, 2012 /Viacom Press Release via PRNewswire/ -- Viacom (NASDAQ: VIA, VIAB) today announced that the company has reached a long-term agreement to renew carriage with DIRECTV.

(Logo: http://photos.prnewswire.com/prnh/20110811/NY51392LOGO )

All 26 Viacom networks, including Nickelodeon, Comedy Central, MTV, BET, CMT, Logo, Spike, TV Land, MTV2, VH1, VH1 Classic, Palladia, Nick Jr., Nicktoons, TeenNick, Tr3s and Centric, will return to DIRECTV's channel lineup immediately. As part of the overall carriage agreement, DIRECTV has an option to add the EPIX service to its entertainment offerings.

Viacom is extremely pleased to bring its programming back to DIRECTV subscribers, and thanks everyone affected by the disruption for their patience and understanding during this challenging period.
SOURCE Viacom Inc.

RELATED LINKS
http://www.viacom.com.

Also, from C21Media:

Viacom nets return to DirecTV

Viacom and US pay-TV operator DirecTV have ended their carriage dispute with a deal that restores Nickelodeon, MTV and Comedy Central to the latter’s airwaves.

Seventeen Viacom nets (26 including HD feeds) had gone dark on DirecTV for nine days after the companies clashed over the remuneration Viacom would receive and it looked like the row would rumble on for some time.

However, the pair has now come to a long-term agreement that restores the channels immediately. The new deal, financial terms of which were not disclosed, gives DirecTV the option to add Viacom’s Epix movie channel service to its entertainment package.

DirecTV’s 19.9 million customers will also be able to access Viacom content across tablets, computers, mobiles and other hand-held devices through the DirecTV Everywhere platform.

The deal had seemed a long way off as recently as yesterday but Viacom said it was “extremely pleased” to reach an agreement. Despite expressing its own satisfaction at the deal, DirecTV maintained Viacom was the cause of the dispute.

“We are very pleased to be able to restore the channels to our customers and thank them for their unprecedented patience and support,” said DirecTV’s Derek Chang, executive VP of content strategy and development. “It’s unfortunate that Viacom took the channels away from customers to try to gain leverage, but in the end it’s clear our customers recognised that tactic for what it was.”

Viacom claimed it was bargaining for just a “few pennies” extra per customer per day, but DirecTV alleged it had been pushing for a rise of more than 30%, equating to an extra US$1bn on the previous agreement.

Chang today claimed media coverage of the high-profile spat had “accomplished one key thing: it serves notice to all media companies that bullying TV providers and their customers with black-outs won’t get them a better deal.”

Spats between content providers such as Viacom and pay-TV platforms have become common in the US. Just this month, satellite platform Dish Network pulled cablenet AMC, which airs Breaking Bad and Mad Men, after failing to agree on terms.

Jesse Whittock
20-07-2012
©C21Media

GENRES: Children's, Factual, Formats
PEOPLE: Derek Chang
COMPANIES: AMC, Comedy Central, DirecTV, Dish Networks, MTV, Nickelodeon, Viacom
SECTIONS: C21 Kids, C21Drama, C21Factual, Formats Lab
COUNTRIES: US

Also, from The Hollywood Reporter:

Viacom, DirecTV Reach New Carriage Deal

UPDATED: The companies end a two-week blackout in DirecTV homes, with the satellite TV giant saying it won't have to carry premium TV venture network Epix under the seven-year pact.

Viacom and DirecTV have reached a new carriage agreement, they said early Friday.

The deal ends a two-week standoff that led to a blackout of such networks as MTV, Comedy Central, BET and Nickelodeon in the about 20 million homes of the satellite TV giant.

Financial and other terms weren't disclosed, but sources said the deal will run for seven years.

DirecTV will carry all 26 Viacom channels, or 17 when excluding HD feeds, but said it is not required to carry Epix, the premium TV joint venture of Viacom, Lionsgate and MGM.

"In addition to the channels' return, DirecTV customers will also gain the ability to see Viacom programming on tablets, laptops, handhelds and other personal devices via the DirecTV Everywhere platform," the satellite TV company said. "Carriage of the Epix movie channel is not required as part of the new agreement."

Viacom said it "is extremely pleased to bring its programming back to DirecTV subscribers and thanks everyone affected by the disruption for their patience and understanding during this challenging period."

Said Derek Chang, executive vp of content strategy and development for DirecTV: "The attention surrounding this unnecessary and ill-advised blackout by Viacom has accomplished one key thing: It serves notice to all media companies that bullying TV providers and their customers with blackouts won't get them a better deal."

He added: "It's high time programmers ended these anti-consumer blackouts once and for all and prove our industry is about enabling people to connect to their favorite programs rather than denying them access."

Also, from Digital Spy UK:

DirecTV and Viacom end contract dispute, sign new long-term agreement

© DirecTVDirecTV and Viacom have ended their contract dispute after signing a new long-term agreement.

Viacom pulled 17 channels from DirecTV on July 10, after the two companies failed to reach a new contract.

However, those 17 channels, which included MTV, Comedy Central, Nickelodeon, BET and Spike, are once again available for DirecTV customers.

DirecTV's executive vice president of content strategy and development Derek Chang said in a statement: "We are very pleased to be able to restore the channels to our customers and thank them for their unprecedented patience and support.

"It's unfortunate that Viacom took the channels away from customers to try to gain leverage, but in the end, it's clear our customers recognised that tactic for what it was."

In their press release, Viacom expressed: "Viacom is extremely pleased to bring its programming back to DirecTV subscribers, and thanks everyone affected by the disruption for their patience and understanding during this challenging period."

The agreement comes in time for new shows to make their upcoming season or series debuts, such as the Inbetweeners remake on August 20 on MTV.

The Inbetweeners is a revamping of the UK comedy series, which provoked a negative reaction from fans after the first trailer was recently released.

Watch the trailer for The Inbetweeners [here on the official Digital Spy UK website, DigitalSpy.co.uk]

Also, from the Daily Mail:

Snooki, SpongeBob, and the South Park gang are back! DirecTV to restore Viacom channels to 20M customers after nine-day blackout over contract dispute

* 20m DirecTV users will again have access to Viacom channels that were lost after contract dispute

* Cable networks like Nickelodeon, Comedy Central, and MTV were not available for nine days

* Sources say DirecTV will pay Viacom $600m - 20% more - than last year's $500m agreement

Twenty million DirecTV subscribers will again have access to television favourites like SponeBob SquarePants and Snooki after the satellite TV provider reached a deal to restore Viacom’s networks.

The loss of 26 networks – including Comedy Central, MTV, VH1, and Nickelodeon – to 20million homes means the size, length and scope of this programming blackout was unprecedented to date in the U.S. pay-TV industry.

Contentious relationships between program distributors and program makers are on the rise as the industry's growth appears to have peaked.

[click here] for video

Restored: DirecTV and Viacom have reached a contract agreement after nine days' dispute, restoring all 20 channels, including MTV's Jersey Shore featuring Snooki, and SponbeBob SquarePants [...]'The Viacom/DirecTV dispute may be remembered as a critical turning point in programmer, distributor negotiations,' Bernstein Research analyst Todd Juenger told Reuters. 'For the first time in memory, it was the distributor that won the public relations war.'

While distributors typically take the brunt of the complaints about network blackouts, DirecTV argued that the increasing number of disputes with other distributors had educated customers that they would face the same problems with their rivals.

'By showing their willingness to take a blackout, and arguably winning the battle for the hearts and minds of their customers as a result, DirecTV may extract better terms from other programmers down the road,' said Juenger.
Viacom said it restored all of its cable networks, including Nickelodeon, Comedy Central, MTV and BET, which became unavailable to DirecTV customers from July 10.

Restored: Viacom said it restored all of its cable networks, including Nickelodeon, Comedy Central, MTV and BET, which became unavailable to DirecTV customers from July 10The channels went off air after DirecTV balked at what it saw as a steep increase which it said Viacom was demanding. The companies did not disclose the financial terms of the new contract.

But people familiar with the talks said DirecTV will pay Viacom around $600million in the first year of the seven-year contract with subsequent mid-single digit percentage increases.

That would be a 20 per cent increase over the previous contract's $500million a year that was publicly stated by DirecTV Chief Executive Mike White.

DirecTV previously said Viacom sought a 30 per cent increase in carriage fees, equalling $1billion over five years - a boost that DirecTV said was not justified.

Viacom countered that its networks represented about 20 per cent of all viewing on DirecTV but accounted for less than 5 per cent of its programming costs.

Viacom CEO Philippe Dauman said in the memo to staff that on Thursday afternoon the two companies had made a 'decisive push to hammer out a deal that we believe is fair and mutually beneficial.'

In particular, DirecTV had pushed back against having the Epix movie channel tacked on the agreement, at a price of around $500million.

'They took Epix off the table in the last 24 hours and we could move ahead with a deal,' said Derek Chang, DirecTV's top programming negotiator.

RESTORED! THE CHANNELS DIRECTV USERS WILL AGAIN HAVE

Nickelodeon (HD)
Comedy Central (HD)
MTV (HD)
BET (HD)
VH1 (HD)
CMT (HD)
Spike (HD)
Logo
TV Land
MTV2
VH1 Classic
Palladia
Nick Jr.
Nicktoons
TeenNick
Nickelodeon West
Tr3s
Centric
MTV India

'The attention surrounding this unnecessary and ill-advised blackout by Viacom has accomplished one key thing: it serves notice to all media companies that bullying TV providers and their customers with blackouts won't get them a better deal,' said Chang.

On July 1, AMC Networks, the company behind shows such as Breaking Bad, The Walking Dead and Mad Men, was removed from the Dish Network after the two companies failed to reach a new contract.

Similar blackouts have taken place in recent years between Cablevision and Walt Disney Co's ABC; News Corp and Cablevision; and News Corp and Dish; and Time-Warner Cable Inc and Hearst Corp.

Time Warner Cable Inc, the second largest U.S. cable provider, said late Thursday it had reached a deal with Hearst Corp after 16 broadcast stations were blacked out in 14 markets for eight to 12 days.

DirecTV and Viacom had been in talks over a new contract but could not agree on terms before the July 10 deadline.

The nine days of the blackout resulted in Viacom's channels such as Nickelodeon losing ground to competitors like The Disney Channel. DirecTV also shed some customers in the period.

The new contract will let DirecTV customers view Viacom's programming on tablets, laptops, handhelds and other personal devices.

Viacom shares were up 9 cents at $46.74 on the Nasdaq on Friday. DirecTV shares were down 6 cents at $48.89, also on the NYSE.

TV BANNED: THE DAILY SHOW REACTS TO DISPUTE

Master of satire Jon Stewart of the Daily Show poked fun at the severe manner with which the blackout was being reported. ‘Viacom and DirecTV, what are you doing here? Telling people to rise up and demand it like it's some sort of basic cable Arab Spring? I got news for you – it's not! None of this is indispensable!’

But so some of the 20million viewers would still get the full Daily Show experience, he sent correspondent John Oliver to a couple’s home in Montclair, New Jersey, to tell them – verbatim – what they were missing.

No doubt viewers of the comedy news show will be relieved to get the real thing back.

Watch the video [here on the official Daily Mail website, DailyMail.co.uk]

Also, from Examiner.com:

Great news for DirecTV Nickelodeon viewers!

DIRECTV VS VIACOM

An agreement has finally been reached between Viacom and DirecTV, making Nickelodeon channels again available to DirecTV viewers! Many Nickelodeon fans that use DirecTV as their service provider were upset when their favorite Nick shows were taken off the air. Renee of Mansfield, Ohio, along with many other viewers, expressed outrage over losing their family’s favorite shows that they had watched on a regular basic. What a relief it was for them to turn on a Nickelodeon channel again on Sunday, after nearly two weeks of being off the air!

Nickelodeon Animation Studio is located in Burbank, California and has some of the top rated cartoons and family friendly shows in the world! Viacom, who owned the selected air time on DirecTV for all Nickelodeon channels, had originally wanted a 30% increase charge, which would affect many DirecTV viewers! Viacom had decided to remove all Nickelodeon channels from DirecTV on July 10th, in an effort to get DirecTV to increase their cost. A new long-term agreement was finally reached this past week between Viacom and DirecTV, although no details on the terms have been given to the general public. Viacom has restored 17 Channels, some of which include Nickelodeon, CMT, TV Land and many others. In addition, DirecTV customers can also now gain the ability to see Viacom programming on tablets, laptops and other personal devises. DirecTV viewers can visit directvpromise.com for more information.

Viacom Says DirecTV Talks Are Now At An 'Impasse'

From Bloomberg:

Viacom Says DirecTV Talks Are Now At 'Impasse'

Viacom Inc. (VIAB), owner of MTV, Nickelodeon and Comedy Central, said program-fee talks with DirecTV stalled, signaling a longer blackout for 20 million subscribers who lost the pay-TV networks nine days ago.

“We've reached an impasse,” Denise Denson, executive vice president of content distribution at New York-based Viacom, said yesterday in a phone interview. “They’re not negotiating productively. I don’t see any end to this blackout.”
DirecTV said Viacom was misrepresenting the talks. The El Segundo, California-based satellite-TV provider said it had agreed on major points for a new fee agreement restoring the channels, and that an accord was close until Viacom demanded the movie channel Epix be included.

“Viacom insists that we carry the Epix channel at an additional cost of more than half a billion dollars,” DirecTV (DTV) said in a statement. “We know our customers don’t want to pay such an extreme price for an extra channel, they simply want the ones they had returned to them.”

DirecTV, the second-largest pay-TV provider in the U.S., pulled 17 standard-definition and nine high-definition Viacom channels on July 10 after the two companies failed to reach an agreement on a new contract. Since then, DirecTV customers have been without popular cable shows such as “The Daily Show” on Comedy Central.

DirecTV said on July 17 it was closer to restoring Viacom’s channels as talks continued. The company reiterated that view yesterday, calling Viacom’s characterization “completely inaccurate.”

Epix Channel

Viacom “made a proposal last night for our carriage of the 17 channels they pulled from DirecTV and we accepted all material terms for those channels, including an increase that was more than fair," DirecTV said in the e-mailed statement.

Epix, a movie channel that Viacom's Paramount Pictures started in 2009 with Lions Gate Entertainment Corp. (LGF) and Metro- Goldwyn-Mayer Studios Inc., has gained limited distribution on pay-TV systems. The three biggest, Philadelphia-based Comcast Corp., DirecTV and New York-based Time Warner Cable Inc. (TWC), don’t offer the channel.

DirecTV has said Viacom is asking for a 30 percent rate increase over the term of the new contract, amounting to more than $1 billion in additional costs. DirecTV has forecast that its total programming expenses will rise almost 10 percent this year.

‘Deny,’ ‘Delay,’

Viacom has countered by saying its fees account for less than 5 percent of the satellite service’s programming expenses.

Viacom's Denson said yesterday that DirecTV has spent little time on contract talks.
“They spend 10 minutes a day negotiating the deal,” Denson said. “That’s all the time they devote to this -- it’s deny, delay, deceive.”

Meanwhile, Viacom’s audience has shrunk 20 percent since the blackout began, estimates Todd Juenger, an analyst at Sanford C. Bernstein & Co. in New York.

Viacom Chief Executive Officer Philippe Dauman met with DirecTV CEO Mike White last week during Allen & Co.’s media conference in Sun Valley, Idaho, according to Denson. Over the course of a 30-minute talk, Dauman offered a compromise that White said he would consider, she said, declining to discuss specifics.

“Mike never called back,” Denson said.

Also, from C21Media:

Viacom, DirecTV: No deal in sight

Viacom has warned that there is “no deal in sight” in its carriage dispute with DirecTV, as the latter claimed unreasonable demands regarding paynet Epix were holding up talks.

As the war of words escalated between the two firms yesterday, DirecTV said it was “ready to close” a deal to reinstate the 17 (26 including HD feeds) channels that were pulled from its platform last week. It said it had “accepted all material terms” with Viacom to do so.

However, in a statement, the firm added that Viacom insisted it also carry Epix – its joint venture with MGM and Lionsgate – at an additional cost of more than US$500m.

“We know our customers don’t want to pay such an extreme price for an extra channel. They simply want the ones they had returned to them,” DirecTV said.

Viacom hit back, dismissing the claims as a “complete work of fiction.”

In a blog post, the company said: “We’ve offered DirecTV various compromise proposals – proposals without Epix, proposals with Epix, and proposals with significant incentives to carry Epix. DirecTV did not accept all material terms for our channels, nor are we asking for a sum of US$500m.”

Earlier in the day Viacom alleged that DirecTV had shown no urgency in working out a resolution to the spat, which saw networks including MTV, Nickelodeon and Comedy Central go dark on the platform over a week ago.

Viacom claimed that it had made “a significant and comprehensive compromise proposal to DirecTV last Thursday” that could have restored all its channels by the following morning. It also said that it had since made “several additional compromise proposals,” as recently as Tuesday night. It said negotiations were now at an “impasse.”

The news came as Time Warner Cable (TWC) issued its own statement in favour of DirecTV, claiming that “consumers are tired of these disputes and so are we.”

TWC is currently embroiled in its own carriage dispute with Hearst, with 13 of the latter’s local stations going dark on its platform last week as a result.

“Television networks can’t continue to demand huge price increases and expect us to silently pass those cost increases on to our customers,” said TWC, citing its own platform, DirecTV and satellite rival Dish Networks, which recently dropped AMC’s channels in a carriage dispute.

“We will continue to stand up for consumers against programmers’ outrageously large price increases that serve no purpose other than to line network pockets at our customers’ expense.”

Hearst Television president David Barrett hit back: “Warner Cable is refusing to participate in a negotiating process that has enabled us to conclude more than 150 agreements, without service interruptions, in recent months,” he said.

He criticised TWC for conducting a “public relations bandwagon” that included “various unrelated negotiations with programme providers.”

Andrew McDonald
19-07-2012
©C21Media

TAGS: Cable TV, Carriage, Channel distribution
PEOPLE: David Barrett
COMPANIES: AMC, DirecTV, Dish, Epix, Hearst, MTV, Nickelodeon and Comedy Central, Time Warner Cable, Viacom
COUNTRIES: US

Also, from the Associated Press via The Huffington Post:

TV Channel Blackouts Stall Profits

LOS ANGELES — Channel blackouts such as the one that resulted from the recent spat between Viacom and DirecTV have become far more common over the past three years. Consumers can thank the changing dynamics of the entertainment industry.

Media companies such as Viacom and Disney have become steadily more profitable since the gloom of the recession lifted in early 2010. But the cable and satellite providers that pay to carry their channels have seen profitability virtually stagnate as they fight each other for subscribers.

The squeeze has prompted distributors such as Dish and DirecTV to revolt against higher programming costs. Consumers are left in the crossfire.

DirecTV subscribers haven't been able to view Viacom channels such as Comedy Central, MTV, Nickelodeon and VH1 since Tuesday, when the two companies failed to reach a contract agreement over content fees. The companies are still negotiating, but the channel blackout for consumers has continued through the weekend.

The industry's cost pressures mean such fights are likely to continue.

"I think this is the new normal," says Barton Crockett, an analyst with Lazard Capital. "It's getting to be a little bit more of a battle between life and death for these guys."

The rising number of disputes is largely the result of the stagnant market for pay television. Simply put, there aren't many new households being formed in the sluggish economy, and those who want to pay for TV already do. Some 101 million American households subscribe to cable or satellite service. That's about 87 percent of homes, a proportion that has remained unchanged since 2009, according to Leichtman Research Group, which studies media and entertainment.

TV distributors pay media companies a few cents per channel per subscriber each month. In turn, they try to sell packages of channels for more. As costs for those channels rise, so do monthly service bills, but not always by enough to offset the increasing fees cable and satellite providers are paying to media companies. In addition, distributors spend money on special promotions to woo subscribers from competitors. As a result, some companies' expenses are rising faster than revenue.

That has prompted cable and satellite service providers to fight back against cost increases, even when it means blacking out channels until they can eke out a better deal. Satellite TV companies like Dish and DirecTV are in an even tighter squeeze than cable companies because they can't make up for higher costs by providing Internet or phone service.

Major cable and satellite TV distributors DirecTV, Dish, Time Warner Cable, Cablevision and Charter have increased profitability over the last few years, but that's tapered off, according to an Associated Press review of FactSet data.

Back in December 2009, they kept 15 cents of profit after subtracting operating expenses from every dollar of services they sold. That grew to 19 cents last September. But since, cable and satellite companies haven't found a way to wring more profitability from their business.

Meanwhile, prominent media companies that produce and bankroll the shows – Disney, Time Warner, News Corp., Viacom, Discovery, CBS and AMC – have kept expanding their profit share. They grew operating profits from 16 cents to 19 cents per dollar over the same period. That kept climbing to 20 cents per dollar by March.

Media companies have posted gains in part by extracting higher fees from distributors in bare-knuckle contract negotiations. Those gains have come directly at the distributors' expense.

To be sure, each company is different. Disney, for instance, has assets such as theme parks that skew the analysis.

But distributors are no longer enjoying a post-recession bounce. The media companies are. These diverging fortunes have coincided with an outsized revolt by distributors.

In the first six and a half months of this year, 22 fee disputes involving the price of broadcast TV signals have caused channel blackouts, according to the American TV Alliance. That's up from 15 blackouts in all of 2011. There were just four in 2010.

Dish Network Corp. dropped AMC Networks Inc. channels on July 1, two weeks ahead of the premiere of the final season of "Breaking Bad" on Sunday. DirecTV dropped more than a dozen Viacom Inc. channels on July 10. Time Warner Cable Inc. gave up on a Fox Sports channel covering the San Diego Padres in April and on July 9 it let 15 Hearst television stations go dark, complaining of a four-fold fee hike demand.

Distributors say they must hold the line on their biggest expense _programming_ even if they risk having customers defect.

"I don't think the industry can sustain this kind of behavior," says DirecTV's executive vice president of strategy, Derek Chang, who accuses Viacom of trying to raise rates by 30 percent. "Ultimately, it'll drive costs up to the end user."

Viacom argues that DirecTV is out of step with higher-paying competitors now that its seven-year-old contract has ended.

Amid the war of words, one thing is clear: the price of TV is going up.

People already have been paying more and more. In April and May, 1,369 Americans who were surveyed by the Leichtman Research Group reported that their monthly TV bill rose an average of 7 percent from a year ago, to $78.63. That's largely in line with annual single-digit percentage increases historically.

What's different for distributors lately is that they also have to pay for broadcast TV station signals, which they used to get for free in exchange for carrying upstart new channels. In recent years, broadcasters like CBS have demanded cash from TV distributors for broadcast signals, even though consumers who go through the trouble of setting up an antenna could get them over the air at no charge.

Such "retransmission fees" are expected to double industry-wide from $1.8 billion this year to $3.6 billion in 2017, according to research firm SNL Kagan.

"That's an expense that really didn't exist five or 10 years ago," says Leichtman Research Group's president Bruce Leichtman. "That's putting the biggest stress on the system."

The battle ends up hurting consumers the most.

Russell Hawkins, a 36-year-old food company marketer in Clinton, Mich., says that because of the dispute between Dish and AMC, he's decided to end his four-year relationship with Dish and has asked his Internet provider, Comcast Corp., to hook up cable TV in a week. He had no problems paying $70 a month, but the prospect of losing AMC was too much.

"They can't be dropping channels on people," he says.

Now he'll save $40 a month by getting Internet and phone service bundled, and Comcast threw in HBO and Showtime for 2 years for free. His friends are contacting him about how to get the same deal. "A lot of others are going to do the same thing."

David Jacobs, a 48-year-old social media consultant in Damascus, Ore., says he signed up with Dish just six months ago to pay for upwards of 100 channels for around $50 a month. But now, he's locked into a two-year contract and will have to pay hefty penalties if he cancels. He'll now have to scramble to find a way to watch the premiere of "Breaking Bad," his favorite show, which airs on AMC.

AMC has offered to stream the episode free online for Dish subscribers. But he's not sure what to do. His options include paying extra for a download from Apple's iTunes or Amazon.com, or resorting to an unauthorized download from a pirate site.

"These are big multimedia corporations," Jacobs says. "But me – the little guy who's struggling every day to get by and live life – I'm left holding the bag. That's what makes me the most angry."

Also, from the Lost Angeles Times:

Nickelodeon ratings tumble from loss of carriage on DirecTV

"SpongeBob SquarePants" has taken a hit from losing DirecTV viewers. (Nickelodeon / July 16, 2012)Ratings for Viacom's Nickelodeon have fallen dramatically in the days since the channel was dropped from satellite broadcaster DirecTV over a fee dispute.

On July 10, the last day Nickelodeon had distribution on DirecTV, its total day audience was about 1.8 million. On July 11, that figure fell 33% to 1.2 million. On Friday, the average was up slightly to 1.3 million.

Losing carriage on DirecTV couldn't have come at a worse time for Nickelodeon. The cable network, which caters its programming to kids and teens with shows that include "SpongeBob SquarePants" and "Dora the Explorer," has seen its audience shrink over the past year while rival Disney Channel has made gains.

While talks are ongoing between DirecTV and Viacom, neither side has indicated that a deal is near. Viacom took out a full-page ad in the Los Angeles Times today encouraging DirecTV subscribers to switch services.

A Viacom spokesman noted that the ratings drop is not surprising given how popular Nickelodeon is on DirecTV. "It's the most watched cable network on DirecTV," the spokesman said.

Other Viacom channels have also seen a loss of viewers. MTV's total day average went from almost 500,000 viewers on July 10 to 273,000 on July 13, a 43% dip. VH1 has dropped almost 30% of its audience and Comedy Central is off 21% for the same period.

Also from the Lost Angeles Times:

Nickelodeon ratings down 20% after DirecTV drops network

The kids' channel is one of several Viacom-owned networks that have disappeared from DirecTV viewers' homes as the companies argue over a new distribution deal.

SpongeBob SquarePants is getting the life squeezed out of him.

Ratings have plummeted more than 20% at Nickelodeon, home of "SpongeBob SquarePants," "iCarly" "Dora the Explorer" and other popular shows, in the week after satellite broadcaster DirecTV stopped carrying the kids' channel.

Other Viacom Inc.-owned networks, including MTV, Comedy Central and VH1, have also seen their ratings fall since disappearing from the homes of about 20 million DirecTV subscribers.

The two companies have been arguing over terms for a new distribution deal. DirecTV has said the long-term agreement that Viacom is seeking is an increase in value of $1 billion over the previous contract. Viacom countered that the number is "significantly less than that."

The battle has been particularly nasty. Viacom has been running ads in print, television and radio using its TV characters to encourage DirecTV consumers to find a new pay-TV provider. DirecTV has fired back that Viacom is trying to gouge its subscribers and that "moms and dads are already fed up with Viacom using SpongeBob and Dora to frighten their children."

The situation may only get worse. A top Viacom executive said Wednesday that the company had stopped negotiating with DirecTV.

"I really don't see any end in sight, truthfully," said Denise Denson, Viacom's executive vice president of content distribution. "Nothing about negotiating with them is productive."

Whether that is a negotiating ploy is likely to become apparent in the days ahead. A spokesman for DirecTV said it had a deal to put the channels back on its service when Viacom pushed for carriage of its movie channel Epix at a cost of more than $500 million as part of the pact.

"We know our customers don't want to pay such an extreme price for an extra channel.... We stand ready and willing to work with Viacom to get this done and, once again, ask Viacom to do the right thing and restore these channels to our customers immediately," the DirecTV spokesman said.

Fights between programmers and distributors are nothing new, but usually agreements are reached without channels being dropped. Once that point of no return is crossed, however, negotiations can drag on as neither feels deadline pressure to reach an accord and both sides start to dig in their heels. In 2010, News Corp.'s Fox went off Cablevision in the New York City area for two weeks until a new deal was struck.

In the short term, it is Viacom that is absorbing more punches. Nickelodeon's rivals have seen significant ratings gains in the days since DirecTV stopped carrying the channel.

Walt Disney Co.is benefiting the most from Nickelodeon's woes. Not only has Disney Channel's audience jumped 20%, DirecTV has also added Disney Jr., a relatively new network, to its service to help fill the void left by Nickelodeon. The numbers for Disney Jr. have been solid enough that DirecTV said it will continue to make it available to all of its subscribers even after it reaches a new accord with Viacom and brings back Nickelodeon.

For Nickelodeon, the loss of DirecTV couldn't come at a worse time. The cable network has already seen its ratings fall sharply this year. A long, drawn-out fight with DirecTV may make it difficult for the channel to fully recover.

"The central question is: How much of that audience will come back when Nickelodeon returns?" said Sanford C. Bernstein analyst Todd Juenger. "Certainly a percentage of the kids will get hooked on Disney programming and stay with it."

Other, smaller kids' channels such as the Hub and Sprout are also picking off discarded Nickelodeon viewers. The Hub said its total audience was up more than 100% and among kids 6 to 11 it saw a gain of almost 80%. Sprout's audience grew more than 60%.

"We're definitely getting a spike from this," Sprout President Sandy Wax said.

DirecTV could eventually face blow-back from the fight with Viacom as well. Although DirecTV spokesman Robert Mercer said the El Segundo company has lost only a few subscribers since the Viacom channels came off, that could change if no new deal is imminent.

"Disconnects should be a greater issue as the dispute drags on," Greenfield said in a recent report. Although Viacom is "clearly in pain," Greenfield noted that it will be easier for the programmer to recapture lost advertisers and viewers than for DirecTV to replace lost subscribers.

Viacom's Denson said the New York company will start aggressively persuading other cable and satellite operators that carry its channels to use that to market against DirecTV.

Some rival distributors, including Cox Cable, have made a point of publicly siding with DirecTV in its battle with Viacom. But others are finding subtle ways to let consumers know there are other options. Satellite broadcaster Dish Network Corp. has ads on Facebook that include characters from popular Nickelodeon, MTV and Comedy Central programs. SomeComcast Corp.cable systems are running radio ads encouraging consumers to switch pay- TV providers.

"They are actively marketing behind the scenes, taking advantage of the situation," Denson said. "Everyone is starting to play against DirecTV."

Also from the Lost Angeles Times:

Viacom and DirecTV continue to negotiate but remain far apart

Viacom and DirecTV are still trying to hammer out a new deal that will bring MTV, Comedy Central, Nickelodeon and more than a dozen other channels back to the satellite broadcaster.

But in between the talks, the two sides are still taking shots at each other.

Interviews with the chief negotiators for both parties reveal that there is still a wide gulf dividing the companies.

"Their ratings have dropped on a lot of their major networks. It's hard to justify significant increases," said Derek Chang, a DirecTV executive vice president. DirecTV claims that Viacom wants an increase of 30% to carry its channels, which translates into $1 billion.

Viacom's Denise Denson, executive vice president of content distribution, countered that the media giant's channels represent 20% of all viewing on DirecTV and yet "we get about 5% of their license fees. That's the real crux of it."

DirecTV's Chang said there is more than money dividing the two companies. He does not like that Viacom puts much of its content on its websites for free.

"It certainly undermines the value of what they are selling to us," Chang said, adding, that "if people are viewing their stuff online and not on our platforms, why would we pay as much?"

Denson responded that Viacom's research has not shown that free offerings of its shows online have hurt the ratings for its cable channels.

"We use it as a marketing tool to drive people back to our channels," Denson responded when asked why the company offers so much content for free online.

As for reaching an agreement, both sides expressed optimism that it will happen but neither would specify when.

"We don't expect this to last too long," Chang said. "We're in open discussions and working hard to try to close a deal," Denson added.

Chang said DirecTV is willing to put the channels back on while talks continue, but Viacom isn't interested.

For DirecTV subscribers wondering about getting a rebate or some sort of discount for the days they were deprived of Viacom's channels, Chang said that would be determined "down the road."

Also, from The Hollywood Reporter:

Analysts Weigh in on Viacom-DirecTV Carriage Dispute

One analyst calls the stand-off a "lose-lose" situation, while another one says it could be "a serious mistake" for any pay TV operator to not carry the Viacom channels.

Analysts late Tuesday started to weigh in on the networks carriage dispute between entertainment conglomerate Viacom and satellite TV giant DirecTV, predicting who would be hit harder by any fallout if the two sides don't reach an agreement quickly.

Most highlighted Viacom's broad viewership strength despite near-term ratings challenges at some flagship networks. But before Viacom channels, including MTV, Nickelodeon and Comedy Central, went dark in DirecTV homes at midnight ET, Evercore Partners analyst Alan Gould described the showdown as a lose-lose situation for the two companies.

"We estimate that DirecTV represents 12-13 percent of Viacom's domestic media affiliate and advertising revenue," he wrote in a report. "Viacom claims its programming represents 20 percent of the viewing on DirecTV, so we would assume DirecTV would lose some subscribers, particularly families that want Nickelodeon."

He estimated that Viacom generally receives about $3 per subscriber per month for its 17 channels, or 26 when including HD feeds. Given their just-ended carriage deal is seven years old, DirecTV likely pays less than $2.50 per subscriber per month, he added.

In his worst-case scenario, Viacom's channels would be off DirecTV for a full year. "We estimate the impact would be about $300 million after-tax to Viacom, or 63 cents per share, a 13 percent hit to our fiscal year 2013 [earnings] estimate," Gould said. "If the channels were off for a year, it would likely reduce Viacom's aggressive share repurchase plan."

Credit Suisse analyst Spencer Wang also warned that Viacom could be exposed to risk in the carriage showdown. Viacom draws a big audience, but doesn’t own a broadcast network, broadcast stations or a major sports asset, which peers like News Corp. can use for leverage during carriage and re-transmission consent talks, he argued.

Nomura's Michael Nathanson said though that Viacom should end up getting things its way, highlighting that of total live TV viewership, Viacom has eight channels in the top 30.

"We expect Viacom to ultimately receive affiliate fee step-ups of at least high single digits with DirecTV over the life of the deal, consistent with prior guidance," he said. "We do not believe Viacom is worried about the short-term quarterly impact, and although companies try to avoid public negotiations, we believe Viacom should be able to use this spotlight to prove its affiliate fee worth."

He entitled his report "Will DirecTV Make Dora Cry?" in a reference to Nickelodeon character Dora the Explorer, which the company showed crying during a carriage dispute with Time Warner Cable a few years ago. "Viacom ultimately largely received the increases they were seeking during the company’s Time Warner Cable affiliate fee negotiations on New Year’s Eve Dec. 31, 2008," Nathanson highlighted.

BTIG analyst Richard Greenfield also wondered if DirecTV CEO Mike White was risking too much with a stand-off with Viacom. "Will Mike White Make the Same Mistake as Charlie Ergen?" his report asked in reference to the Dish chairman who has been in various high-profile carriage battles.

"While Viacom’s ratings have definitely softened from where they were 12-18 months ago (MTV's Jersey Shore highs along with Nick's share loss to Disney Channel), we believe a multichannel video programming distributor would be making a serious mistake to not carry the Viacom suite of channels," Greenfield wrote. "While the demographics of Viacom’s cable network viewers may be the most exposed to finding Internet-based alternatives, the viewership of online programming is still dwarfed by the size and scale of Viacom’s content."

North American Satellite Broadcasting Service DirecTV Says It's Closer To Deal With Viacom

From Bloomberg:

DirecTV Says It's Closer to Deal With Viacom

DirecTV (DTV) is closer to restoring Viacom Inc. (VIAB)'s 26 channels, including MTV, Nickelodeon and Comedy Central, as discussions between the two sides continue, according to the satellite-TV provider’s head of content.

“There's been progress,” Derek Chang, DirecTV's executive vice president of content, strategy and development, said yesterday in a phone interview. “We’ve been getting closer. We would love to be done with this thing, but we have to do it in a way that we can protect our customers.”

DirecTV, the largest U.S. satellite-TV provider, lost 17 standard-definition and nine high-definition channels from Viacom on July 10 after the two sides failed to reach an agreement on a new contract. Viacom demanded the networks be dropped and threatened to sue El Segundo, California-based DirecTV if it didn’t comply, Chang said.

Viacom is asking for a 30 percent rate increase over the term of the new contract, Chang said, amounting to more than $1 billion in additional costs. DirecTV has forecast that its total programming expenses will rise almost 10 percent this year.

Viacom has countered by saying its fees account for less that 5 percent of the satellite service's programming expenses.

Viacom began offering new episodes of "The Daily Show" and "The Colbert Report" on the Web yesterday after pulling some of its online programming last week. The New York-based company said in a blog posting that the decision was meant to be “helpful to our fans with DirecTV.”

Back on TV

"We're happy Viacom has put programming back on the Internet because it allows our viewers to watch those shows," Chang said. "But clearly we want to get the programming back on TV at a reasonable price."

Mark Jafar, a Viacom spokesman, declined to comment.

DirecTV rose 1.2 percent to $48.78 yesterday in New York trading. The shares have climbed 14 percent this year. Viacom’s Class B stock, up 3.4 percent to $46.96 in 2012, was little changed yesterday.

DirecTV isn’t the only pay-TV broadcaster locked in a contract dispute. Dish Network Corp. failed to reach an accord with AMC Networks Inc. and replaced its channels on June 30, affecting 14 million customers.

Time Warner Cable Inc. (TWC), the second-largest U.S. cable provider, voiced support for DirecTV and Dish in a statement yesterday, saying television networks were demanding “huge price increases.”

“We will continue to stand up for consumers against programmers’ outrageously large price increases that serve no purpose other than to line network pockets at our customers’ expense,” the New York-based company said.

The Official Nickelodeon USA Website, Nick.com, To Add Streaming Video Of "One Direction: A Year in the Making" Documentary Tonight For DirecTV Subscribers

Nickelodeon USA has announced on their official Twitter profile page (@NickelodeonTV) that after Nickelodeon USA shows the special 'One Direction' documentary called "A Year in the Making" tonight at 8/7c, Nickelodeon North America will be putting the whole "One Direction: A Year in the Making" documentary special up on the official Nickelodeon USA website, Nick.com, from 9/8c so that any US Directioners (dedicated North American fans of the UK-Irish boyband 'One Direction') who might miss the opportunity to watch the show on Nickelodeon TV due to Viacom's (the parent company of the Nickelodeon brand) ongoing dispute with the North American satellite broadcasting service DirecTV a chance to view the documentary show online:

1D special TONIGHT at 8/7c! AND we're posting it on http://Nick.com for a week starting at 9/8c especially for u DirecTV Directioners!

North American Nickelodeon viewers affected by Viacom's dispute with DirecTV are encouraged to telephone DirecTV on 800-531-5000 and demand "I Want My Nick TV!"

Also, from Examiner.com:

Viacom to air One Direction TV special online in response to DirecTV blackout

Fans of the British boy band One Direction who also happen to be subscribers of DirecTV were worried about seeing Saturday night’s new TV special called “One Direction: A Year in the Making.” That's because Nickelodeon is now in blackout mode on DirecTV. Plus, Viacom no longer airs new episodes of its popular shows online in response to the DirecTV battle.

However, Viacom posted on the Nickelodeon Twitter page at 5:00 p.m. ET on Friday, July 13...

Directioners! Right after the @onedirection special airs Sat. at 8/7c on Nick we’re making it available for a week on Nick.com.

This means that young fans who use DirecTV as their cable provider can now go online at Nick.com at 8:30 p.m. ET on Saturday, July 14 to watch a rebroadcast of the One Direction TV special. This move is a very welcome one in a bitter battle between two media giants.

One Direction is the teen group that made their first TV appearance on the UK version of “The X Factor.” Their debut album titled “Up All Night” hit the number one position in 15 different countries around the world. Niall Horan, Zayn Malik, Liam Payne, Harry Styles and Louis Tomlinson are now global sensations and their level of fame is rivaling that of Justin Bieber. One Direction was the first UK band to debut at No. 1 in the United States with a debut album and it is nominated for three Teen Choice Awards. The group currently has over seven million Facebook and five million Twitter followers. Their “What Makes You Beautiful” video has garnered more than 100 million views on YouTube.

The sky is the limit for One Direction and now their DirecTV fans have something to sing about. Even though Nickelodeon is blacked out on DirecTV, Nick.com will replay the “One Direction: A Year in the Making” TV special online. Was this a good move by Viacom? Only time will tell if a settlement can be reached in the DirecTV versus Viacom battle.

In the meantime, 20 million DirecTV customers still can’t view 26 of their favorite channels including MTV, MTV2, Comedy Central, TV Land, CMT, BET, Centric and VH1. The blackout is now three days old and is the direct result of an on-going feud between DirecTV and Viacom over carriage fees. The existing contract expired last Sunday and Viacom is demanding 30% higher fees from DirecTV to retransmit content from their stations. DirecTV fired back by refusing to pay the increase and posted the following message on its Facebook page on Thursday [12th July 2012] night...

No Drama, Let’s Deal: Viacom can’t get anyone to believe they’re not the ones responsible for cutting off DIRECTV customers’ channels Tuesday night, and then less than 12 hours later, denying everyone in America from getting their top hits for free online. Rather than listen, Viacom’s turning up the volume on a planned radio blitz across top US cities to interrupt everyone’s weekend. Moms and dads... are already fed up with Viacom using SpongeBob and Dora to frighten their children. Viacom’s full-page newspaper ads featuring Jon Stewart and Steven Colbert talking about ‘people’s freedom’ fell completely flat when Viacom themselves shut down both TV and Internet access to those very same shows. Consumer protection and free speech advocate Public Knowledge decried their “overreaction as unprecedented.”

Rather than ramp up the propaganda in newspaper ads and radio spots, all we want is to get the channels back on air without an unfair increase to customer bills. We want to enable our customers to enjoy programming, not deny it, so we’ve added 8 new Encore services and opened up PBS Sprout, The Hub, TV One, Fuse and other programming to hopefully help offset some of the inconvenience this has caused.

Viacom just needs to grow up and stop with the misleading propaganda, no one is buying it, and focus their efforts at the negotiating table.

Viacom posted this message on its blog on Wednesday concerning the dropped channels:

The last time we spoke with DirecTV was at 11:00 a.m. yesterday morning and there were no new ideas offered for resolution. In fact, the last proposal DirecTV had made was lower than anyone else pays in the industry, and a deal we said we would not do out of fairness to other distributors. It is essentially the same proposal they had been talking about for three weeks, and one we continually said we would not do. DirecTV also refused to engage with us on any issues related to the deal beyond the rate increase. We are ready to talk at any time.

After a call to customer service tonight, this DirecTV customer was given a $10 discount for three months for the inconvenience of the Viacom blackout. To ramp up its programming options during the Viacom blackout, DirecTV has added Disney Junior, PBS Sprout, The Hub, TV One, Fuse and eight new Encore channels to its mix.