Another dispute between a satellite provider and a media conglomerate has ended in the subscribers being the ones who feel the effects, as DirecTV and Viacom failed to reach a new deal by midnight Tuesday (July 10).
The stand-off is over the cost of content. Providers like DirecTV pay a fee to media companies that allows them to carry that company's channels and recently providers have been taking a hard stance against rising carriage fees. Now DirecTV subscribers have lost the 26 Viacom channels, which include Comedy Central, MTV, Nickelodeon, Spike TV, TV Land and VH1.
posted a message on its blog regarding the dropped channels:
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.
Meanwhile, DirecTV has created its own website telling its side -- namely, that Viacom is demanding an unnecessary price increase that DirecTV does not want to pass on to consumers.
This is the second such blackout in just 10 days. On July 1, DISH removed the AMC channels after the two companies could not reach an agreement over carriage fees.