DirecTV Drops Viacom Channels: Both Sides Unable to Resolve Fee Dispute

  • Unable to agree on terms for a new contract, more than a dozen Viacom channels were pulled from DirecTV on Wednesday.
  • DirecTV customers lost access to Comedy Central, BET, Nickelodeon, MTV, VH1, Comedy Central and other cable channels owned by Viacom.
  • Viacom claims it is seeking “only a couple pennies per day, per subscriber,” while DirecTV has countered that Viacom is pushing for “customers to pay more than a 30 percent increase, which equates to an extra $1 billion.”
  • “On DirecTV’s side, it’s claiming it sent proposals but never heard anything back and as such was forced to pull the channels,” reports Engadget. “Viacom has been running ads and notices all day to make sure kids big and little call DirecTV to apply pressure about missing their television shows.”
  • “The two companies blamed each other for the blackout, which began around midnight as a result of a dispute over a new carriage contract for the Viacom-owned channels,” reports The New York Times. “About 20 million households are affected, representing one-fifth of all the nation’s subscribers to cable or satellite television service.”
  • DirecTV is suggesting that customers access Viacom content online and via services such as Amazon Prime or Netflix until the situation can be resolved.
  • “Viacom took action to make that more difficult Wednesday afternoon — not just for DirecTV customers, but for all Internet users,” according to NYT. “The company took episodes of ‘The Daily Show,’ ‘The Colbert Report’ and some other popular shows off its Web sites.”
  • In an effort to rally public support, Viacom posted an image of Nickelodeon’s SpongeBob SquarePants on Facebook with the accompanying quote, “Who lives in a pineapple under the sea? I don’t know. I have DirecTV.” However, initial public complaints seem to be directed at both companies.

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