Make us your home page
Instagram

Viacom, DirecTV reach deal, end 10-day blackout

NEW YORK — Viacom will get more than $600 million a year from DirecTV in programming fees under their new seven-year agreement, up at least 20 percent from the previous terms, Bloomberg News reported.

Viacom, owner of the MTV, Comedy Central and Nickelodeon networks, announced a new agreement with DirecTV on Friday morning, ending a 10-day blackout on the satellite-TV service. Bloomberg News said a person familiar with the payments asked not to be named because the information isn't public.

Before the accord was reached, DirecTV said that Viacom was demanding a 30 percent increase, amounting to more than $1 billion in additional costs over the contract.

"They're both winners here," said Amy Yong, an analyst at Macquarie Capital USA in New York. "DirecTV got a deal that was less that Viacom wanted, so on the margin, that's a win for DirecTV. But it's also a win for Viacom because they get more money."

The deal restores Jersey Shore, Dora the Explorer and other shows to DirecTV's 20 million U.S. viewers, with all of Viacom's 17 standard-definition and nine high-definition networks returning to DirecTV. The agreement doesn't require DirecTV to carry the movie channel Epix — a source of contention during negotiations. DirecTV had said Viacom was insisting the satellite provider pay more than $500 million for Epix, which Viacom denied.

DirecTV also secured out-of-home live-streaming rights for all 17 of Viacom's channels as part of the deal, said Derek Chang, DirecTV's executive vice president of content strategy and development. That means customers will be able to watch live Viacom programming on their phones, tablets and computers.

It's the first time Viacom has given a pay-TV provider live rights to their programming, Chang said. There's no time frame yet for when the service will be available, he said.

The parties had been negotiating for several months and extended their seven-year agreement past the original June 30 expiration while talks continued. Viacom's channels went dark for DirecTV subscribers just before midnight on July 10. The satellite provider cited shrinking Viacom ratings during the dispute. Viacom has said its programs amount to 20 percent of DirecTV's audience.

Viacom, DirecTV reach deal, end 10-day blackout 07/20/12 [Last modified: Friday, July 20, 2012 9:54pm]
Photo reprints | Article reprints

Copyright: For copyright information, please check with the distributor of this item, Bloomberg News.
    

Join the discussion: Click to view comments, add yours

Loading...
  1. For Gov. Rick Scott, 'fighting' could mean vetoing entire state budget

    State Roundup

    Every day, Gov. Rick Scott is getting a lot of advice.

    The last time a Florida governor vetoed the education portion of the state budget was in 1983. Gov. Bob Graham blasted fellow Democrats for their “willing acceptance of mediocrity.”
  2. Potential new laws further curb Floridians' right to government in the Sunshine

    State Roundup

    TALLAHASSEE — From temporarily shielding the identities of murder witnesses to permanently sealing millions of criminal and arrest records, state lawmakers did more this spring than they have in all but one of the past 22 years to chip away at Floridians' constitutional guarantees to access government records and …

    The Legislature passed 17 new exemptions to the Sunshine Law, according to a tally by the First Amendment Foundation.
  3. Data breach exposes 469 Social Security numbers, thousands of concealed weapons holders

    Corporate

    Social Security numbers for up to 469 people and information about thousands of concealed weapons holders were exposed in a data breach at Florida the Department of Agriculture and Consumer Services. The breach, which the agency believes happened about two weeks ago, occurred in an online payments system, spokesperson …

    Commissioner of Agriculture Adam Putnam on Monday that nearly 500 people may have had their Social Security numbers obtained in a data breach in his office.
[Times file photo]

  4. Trigaux: Can Duke Energy Florida's new chief grow a business when customers use less power?

    Energy

    Let's hope Harry Sideris has a bit of Harry Houdini in him.

    Duke Energy Florida president Harry Sideris laid out his prioriities for the power company ranging from improved customer service to the use of more large-scale solar farms to provide electricity. And he acknowledged a critical challenge: People are using less electricity these days. [SCOTT KEELER   |   Times]
  5. Citigroup agrees to pay nearly $100 million fine for Mexican subsidiary

    Banking

    NEW YORK — Citigroup has agreed to pay nearly $100 million to federal authorities to settle claims that a lack of internal controls and negligence in the bank's Mexican subsidiary may have allowed customers to commit money laundering.

    Citigroup has agreed to pay nearly $100 million to federal authorities to settle claims that a lack of internal controls and negligence in the bank's Mexican subsidiary may have allowed customers to commit money laundering. 
[Associated Press file photo]