Phillip Swann is president and publisher of TVPredictions.com. He has been quoted in dozens of publications and broadcast outlets, including CNN, Fox News, Inside Edition, The New York Times, The Washington Post, The Chicago Tribune, The Financial Times, The Associated Press and The Hollywood Reporter. He can be reached at swann@tvpredictions.com or at 703-505-3064.
Click TVPredictions.com to read more news and features on TV technology.
DIRECTV: Programmers Are Picking On Us!
By Swanni
Washington, D.C.
(August 3, 2012)
-- DIRECTV yesterday complained that programmers such as Viacom
are 'picking on' them to try to set higher market rates to carry
their channels.
The satcaster recently settled a contentious fee fight with
Viacom, which forced 26 Viacom channels off its airwaves for
almost 10 days. Still sounding bitter over the dispute, DIRECTV
CEO Mike White told a group of Wall Street analysts yesterday
that programmers are trying to force his company to pay higher
than normal rates to carry their channels. The reason: If
DIRECTV, which has more pay TV subs than anyone except Comcast,
pays a higher rate, other TV providers will be pressured to do
so as well.
"I
mean we've had issues with several (programmers) as you know. It
seems like perhaps because of our size, we get picked on to try
and reset the market more often than I think is appropriate,"
White said in the conference call which followed the company's
second quarter financial release.
But the DIRECTV executive maintained that he will not overpay to
carry any channel because it would mean higher bills for his
customers.
"I continue to believe that
all of us in this industry both on the media side and on the
distributor side need to spend a little more time in the
customer's home in understanding what's happening with their
incomes in this economy. Because the customer at the end of the
day is the one who is getting squeezed and bearing the brunt of
these exorbitant price increasing demands that are just not
sustainable. We are going to continue to stand up and put the
customer first," White said.
DIRECTV's next likely carriage showdown will be with CBS; the
satcaster's CBS agreement expires at the end of the year.
"We
don't get into kind of going through every contract with you
guys and I'm not going to do that here," White said. "We’ve got
one other large one, I think it’s pretty public, and that is our
CBS deal which we are in the middle of renegotiating but I'm
very optimistic. We’ve had very good conversations and I think
all we’re trying to do is get a very fair deal for our customers
and I am very optimistic that that will be wrapped up and we
won’t have any significant issue on that one."
White was also asked about the upcoming Pac-12 Network, which
will air Pac 12 college football and basketball games. The
executive refused to commit to carry the channel.
"Sports is an important part of DIRECTV but
frankly we have to be disciplined in that area too, just like we
are on the entertainment side. So I think we’ll have to see," he
said.
Comment on this story below.
_______________________________________________________________________________
What do you think? Offer your comments below!
