DirecTV and VERSUS are locked in contract extension talks with
both sides airing ads to lobby customers in their favor, such as
these that showed during Saturday's IndyCar broadcast
(image source SportsBusiness Daily) |
With a midnight deadline for contract extension passing, those that watch VERSUS on DirecTV will find that the channel is no longer available.
At midnight Eastern, DirecTV switched to a message that reads:
Versus is no longer available on thearis channel
Comcast, which owns Versus, has forced us to take down the channel because we will not submit to their unfair and outrageous demands.
For more information go to www.directv.com/versus
DirecTV released the following statement shortly after pulling VERSUS content from channel 603:
Comcast has forced us to take down the Versus channel today because we will not agree to their ridiculous demands that simply do not reflect current market valuations for their programming.
DIRECTV already pays Versus more than any other independent distributor (ie non-Comcast) and apparently that’s not enough for Comcast. The more than 20 percent hike they are seeking for what is basically a paid programming and infomercial channel with occasional sporting events of interest is simply piggish.
Furthermore Comcast allows other distributors to carry Versus at much lower level of distribution than they are asking of DIRECTV most notably DISH Network. Comcast has set a market with arms length negotiations with these other distributors and DIRECTV expects equal treatment.
We have heard from a small number of subscribers who are unhappy, but we want them to understand that we must hold the line on programming costs and protect them from unwarranted price increases, especially in this challenging economy.
We offered to continue to carry Versus through the end of September while we negotiate, but Comcast declined. Regardless, we will continue to negotiate with Versus to try and reach a fair settlement, but if they continue to make demands that do not reflect reality, we will have no choice but to live without the channel.
VERSUS is looking for an increase in rate fees, while DirecTV is looking to keep rates where they currently are. Both the channel and the satellite television provider had been running tickers lobbying viewers to see their point of view (see the image above).
“Since our last deal with DirecTV, VERSUS has added many marquee properties and has become the fastest growing sports cable network in the country,” VERSUS said in a recent statement. “Despite this tremendous momentum, we are offering DirecTV the ability to carry VERSUS the same way it does today at the market price for the network. We continue to talk and are hopeful that we will reach an agreement.”
VERSUS is owned by Comcast, the nation’s largest cable provider.
Reached for comment earlier this week, DirecTV spokesman Robert Mercer noted that efforts continue to reach a deal before the Tuesday deadline, but made it clear, a rate increase is not favored.
“We are continuing to try and negotiate a fair deal, but we intend to hold the line on our programming costs and protect our customers against unwarranted price increases that may result from Comcast’s demands that we believe are discriminatory and unrealistic given current market realities.”
VERSUS, has the exclusive cable rights to the National Hockey League, as well as the IndyCar Series and collegiate sports featuring teams from conferences such as the Pac-10, Big 12, Mountain West and Ivy League.
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 Maury Brown is the Founder and President of the Business of Sports Network, which includes The Biz of Baseball, The Biz of Football, The Biz of Basketball and The Biz of Hockey. He is available as a freelance writer. Brown's full bio is here. He looks forward to your comments via email and can be contacted through the Business of Sports Network (select his name in the dropdown provided).
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