Wednesday, July 11, 2012

DirecTV Drops 26 Viacom Channels, Including Nickelodeon, Nick Jr., NickToons, TeenNick, Nickelodeon West, Nick @ Nite, And Nickelodeon HD

From Blog.Viacom, the official blog of Viacom Inc., who is the parent company of the Nickelodeon brand:
DirecTV Drops 26 Viacom Channels

July 11, 2012 @ 12:08 AM

by Mark Jafar, Viacom

The eleventh hour has come and gone and, unfortunately, the unthinkable has happened.

At approximately 11:50 p.m., DirecTV dropped 26 Viacom channels, including:

Nickelodeon, Comedy Central, MTV, BET, VH1, CMT, Logo, Spike, TV Land, MTV2, VH1 Classic, Palladia, Nick Jr., NickToons, TeenNick, Nickelodeon West, Tr3s, Centric, MTV India, Nickelodeon HD, Comedy Central HD, MTV HD, BET HD, VH1 HD, CMT HD and Spike HD.

DirecTV dropped the channels without giving Viacom advanced warning. The last time Viacom was contacted by DirecTV was at approximately 11:00 a.m. on Tuesday morning.

Here's the official statement from Viacom:
We are deeply disappointed that DirecTV dropped Viacom’s channels before our midnight deadline this evening, severing our connection with its nearly 20 million subscribers nationwide. We proposed a fair deal that amounted to an increase of only a couple pennies per day, per subscriber, and we remained willing to negotiate that deal right up to this evening’s deadline. However, DirecTV refused to engage in meaningful conversation. We are hopeful that DirecTV will work with us toward a resolution, and stop denying its subscribers access to the networks they watch most.
Check back here and at www.whendirectvdrops.com and www.facebook.com/whendirectvdrops for updates.
Viacom have also posted an update about the dispute on the official Viacom blog, Blog.Viacom:
Update on State of Talks with DirecTV

July 11, 2012 @ 10:17 AM

by Mark Jafar, Viacom

DirecTV dropped Viacom's channels at precisely 11:46 p.m. ET last night, replacing most of our networks with a looping video message from their CEO, and replacing Nickelodeon with a mosaic image of non-Viacom kids’ programming available on DirecTV.

After doing so, DirecTV told the press that Viacom ignored attempts to reach a deal. This is not true.

The following is a statement from Denise Denson, our Executive Vice President of Content Distribution and Marketing, that clarifies the events that led up to DirecTV removing our channels last night:

"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."

Nickelodeon USA's "DirecTV Is Dropping Nick" Trailer/Promo:



Also, from TheWrap TV:
So Long, Snooki: Viacom Networks Go Dark for DirecTV Customers

Viacom networks including MTV, Comedy Central and Nickelodeon went dark for DirecTV subscribers at midnight ET as Viacom and DirecTV squabbled over fees.

The outage came as a deadline in the dispute passed without a resolution. Both sides said in statements that no deal had been reached.

Viacom said 20 million customers lost their networks. DirecTV said Viacom is seeking a 30 percent increase -- equaling more than a billion dollars -- in the fees it receives from DirecTV. Those costs would likely be passed on to customers.

Derek Chang, DirecTV executive vice president of content, strategy and development, said in the company's statement that Viacom was pushing for the fee increase "despite the fact that the ratings for many of their main networks have plummeted and much of Viacom’s programming can be seen for free online.”

He was referring especially to struggling kids' network Nickelodeon, which began registering significant ratings slides in the fall.

Viacom, meanwhile, complained in a blog post that DirecTV had "dropped the channels without giving Viacom advanced warning," and that the two sides had not been in direct contact since 11 a.m. Tuesday morning. Viacom said DirecTV dropped the channels just before the midnight deadline.

"We are deeply disappointed that DirecTV dropped Viacom’s channels before our midnight deadline this evening, severing our connection with its nearly 20 million subscribers nationwide," Viacom said. "We proposed a fair deal that amounted to an increase of only a couple pennies per day, per subscriber, and we remained willing to negotiate that deal right up to this evening’s deadline. However, DirecTV refused to engage in meaningful conversation. We are hopeful that DirecTV will work with us toward a resolution, and stop denying its subscribers access to the networks they watch most."

In the hours leading up to the blackout, DirecTV subscribers were subjected to on-screen messages from both DirecTV and Viacom, with each claiming the other was to blame.

"This is [...] annoying," tweeted DirecTV subscriber Christopher J. Ortiz, who posted the image above. "#Viacom and #DirecTv, you guys are acting like 5th graders. Half my screen is filled."

Seventeen Viacom networks are affected: Palladia, Centric, Tr3s, CMT, Logo, NickToons, VH1 Classic, TeenNick, Nick Jr., Nick@Nite, Spike, BET, VH1, TV Land, Comedy Central, Nickelodeon and MTV.

Viacom said before the blackout that the two sides had been "negotiating for months" and that it had offered to extend its seven-year-old contract with DirecTV further past its June 30 expiration date. It also said the two sides had made recent progress in negotiations, but that "DirecTV has rejected all of our proposals to renew our agreement."

DirecTV, meanwhile, contended that Viacom "sent a letter to our executives forcing us to take the channels away in order to gain leverage against us in negotiations."
Also, below is a DIRECTV press release about the dispute via Business Wire:
Viacom Drops 17 National Networks from DIRECTV Lineup After Ignoring DIRECTV’s Latest Proposal

Viacom Sends Letter to DIRECTV Demanding Channels be Removed; Pushing DIRECTV Customers to Pay a 30 Percent Rate Hike for Channels In a Ratings Slide

EL SEGUNDO, Calif.--(BUSINESS WIRE)--DIRECTV customers were left without Nickelodeon, MTV, Comedy Central and 14 other channels today, after Viacom dropped its networks from DIRECTV at approximately midnight EDT. DIRECTV executives reached out to Viacom both yesterday and today with a new proposal and a request to keep the channels on while we continued to negotiate, but never heard back, so DIRECTV had to comply with their demand to take the channels down or face legal action.
“Viacom sent us a letter last night that outlined our obligations to remove the channels by midnight or face legal action just as they were falsely telling viewers DIRECTV was responsible. Let’s be clear, Viacom took these channels away from DIRECTV viewers.”
“We have been very willing to get a deal done, but Viacom is pushing DIRECTV customers to pay more than a 30 percent increase, which equates to an extra $1 billion, despite the fact that the ratings for many of their main networks have plummeted and much of Viacom’s programming can be seen for free online,” said Derek Chang, DIRECTV executive vice president of Content, Strategy and Development. “Viacom sent us a letter last night that outlined our obligations to remove the channels by midnight or face legal action just as they were falsely telling viewers DIRECTV was responsible. Let’s be clear, Viacom took these channels away from DIRECTV viewers.”

On its Website www.directvpromise.com, an information resource for customers affected by programming disputes, DIRECTV pointed out that Viacom is demanding an exorbitant increase for many Viacom channels that customers may never watch. DIRECTV stated that if Viacom believes all of its networks are worth so much extra money, DIRECTV customers should have the right to choose which Viacom channels they want to pay to keep and which ones they don’t.

“We have absolutely no problem compensating Viacom fairly, but they have now knowingly put our customers in the unreasonable position of either accepting their extravagant financial demands or losing some of their favorite TV shows,” said Chang. “We feel our customers should not have to pay more for these networks than the customers of any other TV provider. We reiterated this to Viacom today and have not heard back from them.”

“We understand that Viacom’s actions are inconveniencing our customers so we are doing everything we can to help them find alternative programming until this gets resolved,” Chang added. “Customers will now see a variety of replacement channels available to them on one screen, in a Mix Channel format, when they tune to a Viacom channel. For instance, those going to the Nickelodeon channel slot will see alternative choices for children’s programming such as The Disney Channel, ABC Family, Cartoon Network, PBS Sprout, The Hub and Boomerang. Customers can also see full-length Viacom episodes for free by going to www.directvpromise.com and clicking on the ‘Other Ways to Watch’ tab.”

About DIRECTV:

DIRECTV (NASDAQ: DTV) is one of the world’s leading providers of digital television entertainment services delivering a premium video experience through state-of-the-art technology, unmatched programming and industry leading customer service to 33 million customers in the U.S. and Latin America. In the U.S., DIRECTV offers its 19.9 million customers access to more than 170 HD channels and Dolby-Digital® 5.1 theater-quality sound, access to exclusive sports programming such as NFL SUNDAY TICKET™, Emmy- award winning technology and higher customer satisfaction than the leading cable companies for 11 years running. DIRECTV Latin America, through its subsidiaries and affiliated companies in Brazil, Mexico, Argentina, Venezuela, Colombia, and other Latin American countries, leads the pay-TV category in technology, programming and service, delivering an unrivaled digital television experience to 12 million customers. DIRECTV sports and entertainment properties include three Regional Sports Networks (Northwest, Rocky Mountain and Pittsburgh) as well as a 60 percent interest in Game Show Network. For the most up-to-date information on DIRECTV, please visit www.directv.com.

Photos/Multimedia Gallery Available: http://www.businesswire.com/cgi-bin/mmg.cgi?eid=50337469&lang=en

Contacts

DIRECTV
Robert Mercer, 310-964-4683
rgmercer@directv.com
or
Darris Gringeri, 212-205-0882
dagringeri@directv.com.
Also, from C21Media:
DirecTV turns off Viacom channels

US pay-TV platform DirecTV has pulled the plug on 17 Viacom-owned channels including MTV, Nickelodeon and Comedy following a row over carriage fees.

The channels -went dark at 23.50 yesterday after Viacom failed to achieve what it claimed to be a “fair deal” for its content after a series of negotiations with DirecTV executives.

The dispute marks the latest in a long line of clashes in the US between content providers and pay-TV platforms over carriage fees. AMC Networks was embroiled in rows with AT&T and Dish Networks just last week.

DirecTV claims Viacom has been seeking an increase of almost a third on the pair’s previous deal. It said it had made a last-ditch offer yesterday to keep the channels on air but was forced to pull them when Viacom ignored the approach.

“We have been very willing to get a deal done, but Viacom is pushing DirecTV customers to pay more than a 30% increase, which equates to an extra US$1bn, despite the fact that the ratings for many of their main networks have plummeted and much of Viacom’s programming can be seen for free online,” said Derek Chang, the pay-TV operation's executive VP of content, strategy and development.

Chang also alleged Viacom “took these channels away” from viewers, but Viacom countered, saying it was “deeply disappointed” DirecTV had "dropped" them. The number of Viacom nets gone dark rises to 26 if HD versions are also taken into account.

“We proposed a fair deal that amounted to an increase of only a couple pennies per day, per subscriber, and we remained willing to negotiate that deal right up to this evening’s deadline. However, DirecTV refused to engage in meaningful conversation,” Viacom continued in a statement.

Both sides say they are working toward a resolution. For the time being, DirecTV is running replacement channels in the slots vacated. For example, programmes from Disney Channel, Cartoon Network, Sprout, The Hub and Boomerang are running in place of Nick. Viacom content is still available free to subscribers via DirecTV’s website.

Jesse Whittock
11-07-2012
©C21Media

TAGS: Channel carriage, Retransmission
SHOWS: Jersey Shore, South Park, SpongeBob SquarePants
COMPANIES: Comedy Central, DirecTV, MTV, Nickelodeon, Viacom
SECTIONS: C21 Kids, C21Drama, C21Factual, Formats Lab
COUNTRIES: US
Also, from Bloomberg:
DirecTV CEO Says Talks With Viacom Continue

DirecTV (DTV) Chief Executive Officer Mike White said talks are continuing with Viacom (VIAB) Inc., even as the two sides remain “pretty far apart” in a dispute over programming fees.

“We’re happy to do a fair deal,” he said today from the Allen & Co. conference in Sun Valley, Idaho. “We’re talking.”

July 11 (Bloomberg) -- Laura Martin, an analyst at Needham & Co., talks about a dispute between DirecTV and Viacom Inc. over programming fees. Viacom's 26 channels, including MTV, Nickelodeon and Comedy Central, went dark for almost 20 million DirecTV subscribers just before midnight yesterday after the companies failed to reach a new programming-fee agreement. She speaks with Cory Johnson on Bloomberg Television's "Bloomberg West." (Source: Bloomberg)
.
Viacom’s 26 channels, including MTV, Nickelodeon and Comedy Central, went dark for almost 20 million DirecTV subscribers just before midnight yesterday after the companies failed to reach a new programming-fee agreement. DirecTV said that Viacom demanded the networks be dropped from its service, which ranks No. 1 in the U.S. satellite-TV market.

The standoff marks the latest fee tussle between a pay-TV provider and program supplier. Such fights have blacked out millions of subscribers in recent years, including 14 million Dish Network Corp. (DISH) customers who lost access to AMC Networks Inc. (AMCX) last month. Viacom said on its blog that its programs amount to 20 percent of the audience at DirecTV. The satellite provider, meanwhile, cited falling ratings at Viacom’s channels as an issue in the dispute.

“It has been inconceivable that any distributor could drop Viacom’s networks, mostly because of Nickelodeon,” Todd Juenger, a Sanford C. Bernstein & Co. analyst in New York, wrote in a note in June. “But ratings are down, often significantly, at networks representing 71 percent of Viacom affiliate fees.”

$1 Billion

White said Viacom is demanding a fee increase of more than 30 percent, amounting to more than $1 billion in additional costs over five years.

“We offered a hefty increase,” he said today in the interview, without being specific. “We always said we’ll pay a fair price consistent with other large distributors.”

Viacom, based in New York, fell 0.3 percent to $46.73 at the close in New York. The Class B stock has gained 2.9 percent this year. DirecTV, up 13 percent this year, declined 1.1 percent today to $48.15.

Viacom President and CEO Philippe Dauman, questioned at the Allen & Co. conference, said he wouldn’t negotiate in public.

“As you can see, we have negotiated with every other pay- TV operator, without problems,” Dauman said. “Our record speaks for itself.”

The parties have been talking for several months and extended their seven-year agreement past the original June 30 expiration while discussions continued, Viacom said. During that time, Viacom allowed its channels to stay on DirecTV.

‘Deeply Disappointed’

DirecTV dropped Viacom's channels about 10 minutes before midnight with no warning, Mark Jafar, a Viacom spokesman, said in a blog post. He said El Segundo, California-based DirecTV “refused to engage in meaningful conversation.”

“We are deeply disappointed that DirecTV dropped Viacom’s channels before our midnight deadline this evening, severing our connection with its nearly 20 million subscribers nationwide,” Jafar said. “We proposed a fair deal that amounted to an increase of only a couple pennies per day, per subscriber, and we remained willing to negotiate that deal right up to this evening’s deadline.”

Viacom today also began limiting the number of programs it lets people watch for free at its websites, after DirecTV created a navigation tool to help customers find the shows they've lost, according to Meghan McLarty, a DirecTV spokeswoman.

Channel Bundling

White said he isn’t looking to break up Viacom’s bundle of channels and buy them individually, even though his customers would prefer not to pay for networks they don’t watch.

“Consumers ask us to do that all the time,” he said. “I don’t think that’s likely because I don’t think the media companies in general would be willing to do that.”

The sluggish economy and online services such as Netflix Inc. (NFLX) and Hulu LLC also may make satellite customers less likely to pay higher rates, White said.

“In this economy, consumers are struggling,” he said. “Their incomes aren’t growing at those rates, and it’s tough for the average consumer. That’s what we care most about.”

Viacom said its fees account for less than 5 percent of the satellite service’s programming expenses, and that DirecTV “enjoyed way below market rates for Viacom’s networks for a very long time.”
Also, from Bloomberg:
DirecTV, Coping With Nickelodeon Loss, Adds Disney Junior

DirecTV (DTV)’s 20 million customers, following the loss of Nickelodeon kids’ programming because of the satellite-TV provider’s dispute with Viacom Inc. (VIAB), will begin receiving the 24-hour Disney Junior channel tomorrow.

Disney Junior, created by Walt Disney Co. (DIS) to target viewers ages 2 to 7, will be permanently added to DirecTV’s lineup as a basic channel, according to a statement today from the companies. Disney Junior began last year as a daytime programming block within the Disney Channel, before becoming its own 24-hour station this year.

The move lets DirecTV bolster its children’s programming after blacking out Viacom’s 26 channels, including Nickelodeon kids’ shows such as “Dora the Explorer” and “SpongeBob SquarePants.” DirecTV dropped the programs just before midnight on July 10 following stalled negotiations over the fees that the satellite company pays for the shows.

Disney Junior’s programs include cartoons and live-action shows, including “Jake and the Never Land Pirates” and “Handy Manny.” The channel also airs movies from Walt Disney Studios and its Pixar division.

The plan to add the channel was already in the works before the Viacom impasse, said Robert Mercer, a spokesman for El Segundo, California-based DirecTV, the largest U.S. satellite-TV provider. Even so, the deal mitigates the need for other kids’ channels, he said.

“Given the unsurpassed quality of Disney Junior’s family- friendly programming, there’s no reason to watch anything else,” he said in an e-mail.