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DIRECTV vs. Viacom: Day 2
By Swanni
Washington, D.C.
(July 12, 2012)
-- DIRECTV CEO Mike White yesterday said his
satellite TV service is continuing to negotiate with Viacom to
carry its 26 channels, but the two sides remain "pretty far
apart."
That's according to an article by Bloomberg News.
DIRECTV was forced Tuesday
night to remove 26 Viacom channels when the two companies could
not reach a new programming pact. The channels affected include:
all MTV channels, Comedy Central, all Nickelodeon channels, BET,
Spike, VH1, TVLand, Logo, CMT and Palladia.
Speaking yesterday at the Allen & Co. conference in Sun Valley,
Idaho, White said "We're happy to do a fair deal...We're
talking."
DIRECTV claims Viacom is demanding a fee increase of more than
30 percent, which would force it to pay more than $1 billion in
additional fees over the next five years. Viacom, however, says
it's only asking for what other TV providers have already agreed
to pay.
In related news yesterday:
*DIRECTV sought to soothe upset subscribers by making eight
Encore movie channels available for free until July 31.
* Viacom pulled free episodes of some shows such as Comedy
Central's The Daily Show from its web sites for all consumers,
not just DIRECTV subs. The company was reacting to DIRECTV's
suggestion that subscribers upset over losing channels such as
Comedy Central simply watch the shows for free at Viacom's web
sites. (Viacom programming is still available on Netflix, Hulu
and other online services.)
* Cox Communications came to DIRECTV's defense, saying that
programmers today are asking for too much money to carry their
channels.
“This is a reflection of an
unbalanced multichannel video business model that has two major
effects: continued significant increases in the cost of
programming that are the main driver of rising cable and
satellite TV service bills, and wide disparities between what
large and small distributors pay for programming, resulting in
similar disparities in what respective customers pay for
service,"
Cox said in a statement released Wednesday.
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