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DIRECTV unable to reach an agreement with Diversified Communications


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#1 OFFLINE   Draconis

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Posted 05 June 2012 - 04:27 PM

Here we go again.

http://directvpromis...cations-update/

EL SEGUNDO, Calif., June 5, 2012 – After ignoring requests not to disrupt customers’ programming, Diversified Communications last night took away its three local broadcast stations from DIRECTV customers in an attempt to force DIRECTV to accept onerous terms on a new programming contract. Diversified is demanding more than 300 percent what they currently receive, well beyond the same payments for any local broadcast stations of similar popularity and reach.


Diversified Communications includes:
WABI (CBS) Bangor, ME Ch. 5
CW (CW) Bangor, ME Ch. 14
WCJB (ABC) Gainesville, FL Ch. 20



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#2 OFFLINE   hdtvfan0001

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Posted 05 June 2012 - 04:31 PM

At this rate, stations will price themselves out of the market and go dark. If nobody is watching them, they can't sell advertising and will go under.

Not a smart strategy it would seem....content provider greed yet again (300%?).

This also happens at Dish, it happens at Comcast...greed greed greed.

You're right Draconis..."here we go again..."
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#3 OFFLINE   Alan Gordon

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Posted 05 June 2012 - 04:40 PM

Personally, I'd give them a raise just for their name alone:

Diversified Communications

I LOVE that! Just not 300% worth of course... ;)

~Alan

#4 OFFLINE   kenhilton

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Posted 05 June 2012 - 04:40 PM

from what data I can gather(as good as it is) there is about 250,000 people in the Bangor DMA of that 37% get CBS & CW from Directv. So about 92,500 people are not seeing any advertising...thats got to hurt. It was over 2 years before an agreement could be made to broadcast CBS in HD thru TWC here. Sounds like they are up to more games...:nono:

#5 OFFLINE   harsh

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Posted 05 June 2012 - 04:47 PM

This also happens at Dish, it happens at Comcast...greed greed greed.

I hear this a lot, but DIRECTV and TWC would seem to be the reigning champs of LIL disputes.

http://www.deadline....rriage-dispute/

Of course when DIRECTV does it, it is for the good of humankind. The other MVPD's are accused of being cheap and/or greedy for even talking about negotiations.

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#6 ONLINE   yosoyellobo

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Posted 05 June 2012 - 05:25 PM

Any idea how much they are paying now?

#7 OFFLINE   Araxen

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Posted 05 June 2012 - 07:28 PM

Remember the days when Broadcast TV lived off commercial ad revenue? Why does it feel like these networks get 95% of their revenue from companies like Directv and Comcast and 5% from ads? It feels like these networks are having their cake and eating it too.

Of course the consumer doesn't help either because if the channel goes dark they threaten Directv/Dish/etc.. thus giving most of the bargaining power to the Networks.
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#8 OFFLINE   Shades228

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Posted 05 June 2012 - 07:39 PM

Spring/Summer is usually the season of disputes unfortunately.

#9 OFFLINE   Racer88

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Posted 05 June 2012 - 07:43 PM

Awesome. Hopefully many more to come. They can all go dark from now to the end of time. Good riddance.

#10 OFFLINE   Shades228

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Posted 05 June 2012 - 07:55 PM

I hear this a lot, but DIRECTV and TWC would seem to be the reigning champs of LIL disputes.

http://www.deadline....rriage-dispute/

Of course when DIRECTV does it, it is for the good of humankind. The other MVPD's are accused of being cheap and/or greedy for even talking about negotiations.


That site is a very incomplete list if it's based on "the industry".

I don't think anyone would say that these are good for anyone really. However it's just becoming "the norm" because content providers know customer's won't care who's fault it is they just blame who they pay.

Edited by Shades228, 05 June 2012 - 08:02 PM.


#11 OFFLINE   Shades228

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Posted 05 June 2012 - 08:06 PM

Awesome. Hopefully many more to come. They can all go dark from now to the end of time. Good riddance.


I would just rather have the companies become to make fair deals that everyone can agree with.

#12 OFFLINE   mreposter

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Posted 06 June 2012 - 04:20 AM

Remember the days when Broadcast TV lived off commercial ad revenue?


It's kind of ironic that the lower their ratings go the more valuable they think their programming is.
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#13 OFFLINE   hdtvfan0001

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Posted 06 June 2012 - 06:21 AM

I hear this a lot, but DIRECTV and TWC would seem to be the reigning champs of LIL disputes.

http://www.deadline....rriage-dispute/

Of course when DIRECTV does it, it is for the good of humankind. The other MVPD's are accused of being cheap and/or greedy for even talking about negotiations.

You're learning...

Any entity that results in brining down the insanely greedy prices by content sources to consumer users is indeed "good for humankind". DirecTV just happens to do with more success.
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#14 OFFLINE   lokar

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Posted 06 June 2012 - 09:41 AM

I don't understand how these stations have much leverage at all when most people should be able to get them OTA. So if the station is removed, it's really just a percentage of D* subscribers who would really lose the channel, probably just the people in the grade B contour.

#15 OFFLINE   harsh

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Posted 07 June 2012 - 08:07 AM

So if the station is removed, it's really just a percentage of D* subscribers who would really lose the channel, probably just the people in the grade B contour.

Remembering that DIRECTV doesn't include OTA capability in their current offerings, most of those in the other OTA contours lose coverage as well.

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#16 OFFLINE   harsh

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Posted 07 June 2012 - 08:12 AM

DirecTV just happens to do with more success.

Name one network or channel that DIRECTV has stood up to for more than a day or two (leaving out Versus as a given). Success is represented by decisive victory, not simply caving to avoid a takedown.

Swimming in the purple drink?

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#17 OFFLINE   studechip

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Posted 07 June 2012 - 08:56 AM

Name one network or channel that DIRECTV has stood up to for more than a day or two (leaving out Versus as a given). Success is represented by decisive victory, not simply caving to avoid a takedown.

Swimming in the purple drink?


Have you already forgotten the four day outage of Tribune stations in April?

#18 OFFLINE   inf0z

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Posted 07 June 2012 - 01:54 PM

Standing up to these people is for the good of the customer. People continually forget the basic law of business that has been around since the first business began; overhead + profit margin = what the consumer pays. Channel rates go up > overhead goes up > customer pays more.

#19 OFFLINE   Beerstalker

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Posted 07 June 2012 - 02:37 PM

Standing up to these people is for the good of the customer. People continually forget the basic law of business that has been around since the first business began; overhead + profit margin = what the consumer pays. Channel rates go up > overhead goes up > customer pays more.



Exactly, if DirecTV didn't stand up to these demands our rates would be going up $20-30 dollars a month every year instead of $5.

Have you never negotiated for anything in your life? You always start high so you have room to come down. If you start to low and your first offer gets accepted then you probably just lost money.

For example if you want to sell a TV on Craigslist do you list it for what you actually want, or do you list it higher? I would list it higher, cause you know people are going to offer you less than what you list it for. Then you can just accept the highest offer. Say I want $700 for the TV, I'm going to list it for $800. That way if someone offers $800 or $750 I actually make more then I really want, but if my highest offer is $700 then I still get what I wanted. If my highest offer is $650 I don't sell it. If I list it for $700 and someone calls up right away and offers $700, where they would have been willing to pay $800 or $750 I just lost money that I could have made.

The problem comes when you have unreal expectations like I have seen sometimes. You might find a used TV that is on Craigslist for $500, but you can buy the exact same TV on Amazon new for $400. You contact the person and tell them that and they won't budge off their price of $500 cause they paid $600. That person has unreal expectations.

The same thing happens here. Diversified finds out that Fox in NY just got a 300% increase in their price to DirecTV so they figure they can get 300% too. What they fail to realize is that Fox is more popular than the CW, and LA is a lot bigger market than Bangor, ME. Expecting to get the same kind of increase is unreasonable.
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#20 OFFLINE   tonyd79

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Posted 07 June 2012 - 02:53 PM

Name one network or channel that DIRECTV has stood up to for more than a day or two (leaving out Versus as a given). Success is represented by decisive victory, not simply caving to avoid a takedown.

Swimming in the purple drink?


Which is it? They can't reach agreement or that they are always in agreement?
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#21 OFFLINE   georule

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Posted 07 June 2012 - 03:52 PM

Remember the days when Broadcast TV lived off commercial ad revenue? Why does it feel like these networks get 95% of their revenue from companies like Directv and Comcast and 5% from ads? It feels like these networks are having their cake and eating it too.

Of course the consumer doesn't help either because if the channel goes dark they threaten Directv/Dish/etc.. thus giving most of the bargaining power to the Networks.


Broadcast, as a business model, is really "stealth cable" now. Has been for awhile, and SNL Kagan expects retransmission fees to triple from 2010 to 2017.
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#22 OFFLINE   myselfalso

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Posted 08 June 2012 - 03:09 AM

Awesome. Hopefully many more to come. They can all go dark from now to the end of time. Good riddance.


Do you really want local broadcast channels to go dark? :nono2:
I have been a DirecTV subscriber since 2005.

A few channels I'd still like to see DirecTV add are:
CSPAN3, the PAC-12 Network(s), BBC World and more international news channels.

#23 OFFLINE   hdtvfan0001

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Posted 08 June 2012 - 05:18 AM

I hear this a lot, but DIRECTV and TWC would seem to be the reigning champs of LIL disputes.

:lol:

Big picture - in comparison to the nationwide dark channels at various times on your favorite Dish location...it's miniscule.

History shows that it seems no one loves to shut down a channel more than Charlie Ergen. :D

The LILs have simply gotten on the "I want 300% money for my content" bandwagon...
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#24 OFFLINE   Shades228

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Posted 08 June 2012 - 05:45 AM

Name one network or channel that DIRECTV has stood up to for more than a day or two (leaving out Versus as a given). Success is represented by decisive victory, not simply caving to avoid a takedown.

Swimming in the purple drink?


Given that very few people will ever know the details of said contract it's hard to state who folds and who doesn't with these. There could be all sorts of issues in an agreement not just price.

All companies are starting to have their share of blackouts of programming. I could name some but it really doesn't matter because we never know who "wins".

#25 ONLINE   fleckrj

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Posted 08 June 2012 - 06:05 AM

Remembering that DIRECTV doesn't include OTA capability in their current offerings, most of those in the other OTA contours lose coverage as well.


Anyone who has bought a new television since 2007 and lives in the grade A contour does not need OTA capibility from DirecTV. I get ten stations OTA (including two from a neighboring DMA) plus all of the subchannels without using the DirecTV equipment. I can only get one subchannel (one of the two subchannels from my local PBS station) from DirecTV.

The only thing I would loose if DirecTV quit carrying my locals would be the ability to record them on my HR21. I watch the sub channels more than I watch the main channels, and I cannot record them anyway. My local CBS affiliate relegates the CBS SEC game of the week to 5.2, and the SEC network is on 17.2. The only programs I watch on the main network channels are NCIS and NCIS Los Angeles on CBS and Bones on Fox. I used to watch Missing on ABC and The Finder on Fox, but both of those have been cancelled. I think the last thing I watched on NBC was JAG, before they dropped it and it was picked up by CBS.




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