DirecTV customers went without Nickelodeon, MTV, VH1, Comedy Central and a dozen other cable channels owned by Viacom on Wednesday at the start of an unusually widespread channel blackout that drew complaints from would-be viewers across the United States.
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. About 20 million households are affected, representing one-fifth of all the nation’s subscribers to cable or satellite television service.
DirecTV had recommended that its customers watch Viacom-owned shows via the Internet during the TV blackout, but Viacom took action to make that more difficult Wednesday afternoon — not just for DirecTV customers, but for all Internet users. The company took episodes of “The Daily Show,” “The Colbert Report” and some other popular shows off its Web sites.
Representatives for the two companies held discussions on Wednesday, but it is unclear when the channels will be restored. Michael Nathanson, a media analyst for Nomura, said in a note to investors that he and his colleagues would not be surprised if the blackout lasted one to four weeks. However, he said, “we expect Viacom to ultimately receive a significant step-up” in the amount of money it receives from DirecTV for the right to carry its channels.
That’s what the two companies are feuding over: the amount of money DirecTV will pay for Nickelodeon, MTV and other staples. Such negotiations usually take place in private and are resolved without any interruptions in programming. But this one spilled into public view.
“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 said in a statement shortly after Nickelodeon and other channels disappeared from DirecTV’s lineup. “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.”
DirecTV, in a competing statement, asserted that it tried hard to get Viacom to continue to negotiate, but “never heard back” from the company.
“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,” a DirecTV executive vice president, Derek Chang, said in the statement.
Viacom countered the financial claims by noting that its last contract with DirecTV was signed seven years ago.
On Wednesday, Viacom and DirecTV continued to try to rally support for arguments. Viacom posted an image on Facebook of the Nickelodeon character SpongeBob SquarePants with the words, “Who lives in a pineapple under the sea? I don’t know. I have DirecTV.” But many customers seemed to direct their anger at both companies. “Believe me,” wrote one such customer on Facebook, Lynn Foster, “we’re blaming both of you.”
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As a DirecTV subscriber since 1994, I won't miss one channel Viacom offers.. that can all be easily replaced. Most of their programming is trash.. reality TV, and CMT is less Country "Music" TV and more... reality TV and stupid movies.. I always watch GAC, Great American Country which actually has Country Music Video almost 24/7.
