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A little box keeps popping up saying that direct tv is going to remove 27 channels, some of which inclued comedy central, mtv, vh1, amc, ect. I don't know if its the same for you guys but all I know is if I can't watch workaholics tonight because of this, I won't be happy.
DirecTV is not the ones removing the channels. Viacom is demanding 30% more from DirecTV and DirecTV is not willing to agree to the terms of that arrangement. As a result, Viacom will pull programming from DirecTV.
It's an interesting stalemate. Viacom is hoping that pressure on DirecTV will force them into agreeing to their terms. In my view, DirecTV needs to win this fight. If they lose, it is only a matter of time before Viacom forces increases on the other providers and rate increases across the board are enacted to pay for these rate increases. Viacom already believes that DirecTV rates are too low.
Customers need to stick behind DirecTV on this for the good of the market as a whole. Jumping ship only ensures that the other service providers will be at the mercy of Viacom when their contract expires.
It will last until one of the parties cave and gives into the demands of the other.
Analysts expect it to drag out a few weeks. Both sides are being greedy and waging PR battles against the other. While both sides are being extremely greedy, an agreement that favors Viacom is more likely to have costs passed on to consumers through rate increases.
I'm sure there is some underlying anger about commercial skipping technology, but the meat of it boils down to fair price.
Viacom wants an increase of 30% for their channels. This amounts to approximately $1 Billion. DirecTV feels this is too much considering viewership ratings of the channels is dropping, namely Nickelodeon. Furthermore, DirecTV is not too keen about Viacom asking for this large increase while they provide a large amount of the content for-free on their website.
Sparknotes - Viacom is asking for $1 Billion more to be paid for channels with decreasing viewership while a high amount of the content is available for free on their websites. I'd refuse too if I was DirecTV.
In a dream utopia, this would work. Alas, asking a top executive to take a hit on his $43.1 million annual compensation package is like giving a cat a bath. While it can be done, it will inevitably result in them fighting and clawing the entire way.
More than likely, the increase in costs will simply be passed on to the consumer.