AT&T / DIRECTV reach new Starz pact

"Starz’s new deal with AT&T’s DirecTV and U-verse platforms is less lucrative that its previous pact with DirecTV — a sign that AT&T is wielding its clout as the nation’s largest MVPD. (AT&T acquired DirecTV last year.) Starz will see an annual revenue loss of about $46 million from its previous DirecTV carriage deal."

"Wall Street analysts had been bracing for the possibility of AT&T imposing even tougher renewal terms on Starz, so the deal unveiled Thursday was viewed as positive news for Starz. The outcome of the AT&T renewal terms was so crucial to Starz’s long-term earnings prospects that the merger agreement included a clause giving Lionsgate an out if Starz couldn’t reach a reasonably favorable deal with AT&T."

"According to a Securities and Exchange Commission filing, Lionsgate and Starz will lessen the immediate blow of the revenue loss with an agreement for Lionsgate to pay AT&T $16.67 million a year for the next three years in equity or cash. As part of that transaction, Lionsgate agreed to a new VOD, pay per view and electronic sell-through distribution agreement with AT&T."

http://variety.com/2016/tv/news/starz-lionsgate-directv-carriage-deal-merger-1201868296/