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DirecTV/Viacom Dispute?

Discussion in 'DIRECTV General Discussion' started by danpeters, Jul 9, 2012.

  1. mnassour

    mnassour Icon

    Apr 23, 2002
    That's a very, very, very good point.

    If this gets settled, say, within the next week or so, no harm done, and we go back to the way everything was.

    If it doesn't, then don't be surprised to see not only satellite providers, but also the cable folks reassessing what programming they're willing to carry. Let's say DirecTV decides it will lose less by dropping Viacom and taking the hit of those who leave because of that decision, rather than by paying what Viacom wants and keeping those subs.

    Every company is here to make money...and making more money is better than making less money.

    It's entirely possible that Direct could become even more sports oriented as it seeks to maximize profit, maybe with some premium channels and a few news channels on the side. Dish then assumes the position of the movies and foreign/niche programming leader by dropping ESPN and the remaining (expensive) sports programming not carried on the national nets.

    I'm not saying I want this to happen, I'm just saying each company could be rethinking its position as it seeks to maximize profit. I don't see this scenario as good for satellite or the consumer, but it could happen.
  2. Diana C

    Diana C Hall Of Fame DBSTalk Club

    Mar 30, 2007
    New Jersey
    This illustrates a good point. The pre-existing ratings drop would already be eating into Viacom's revenue. Increasing the fees paid by distributors was the only avenue available to offset the loss.

    It also shows that Viacom had to be feeling desperate to actually pull the channels. The way advertising contracts are written, the networks promise to deliver a certain number of "impressions" (viewers, basically) for each contract. If the ratings drop, the networks are obligated to either run the given campaign more times at no charge, or to provide monetary compensation to the advertiser. Many large advertisers (e.g. MacDonalds) have clauses in their contracts that say that if the networks fail to deliver what is spelled out in the contract they won't pay for ANY of the airtime.

    If this drags on for more than another 2 weeks or so, Viacom will be facing a situation where even if they were to get the full increase, they would still lose money in the current fiscal year.

    I think we may be seeing the start of a sea change here. Viacom no doubt expected DirecTV to cave to avoid a prolonged outage...after all, they always have in the past, unlike Dish Network that has often called the networks' bluff. The fact that DirecTV is acting in such an uncharacteristic manner, and that the cable providers are backing that position, may mean that we are starting to see exactly what has been mentioned many times in this thread. Namely, that the distributors are simply saying that they won't pay any more...the channels are simply not worth what the networks are asking.
  3. harsh

    harsh Beware the Attack Basset

    Jun 14, 2003
    Salem, OR
    Excels as compared to whom? The IRS?

    DISH knocked DIRECTV off the top step this last go-around and the anecdotes about uneven treatment and misinformation are arguably getting more fantastic.
  4. HuskerHarley

    HuskerHarley AllStar

    Feb 8, 2012
    I'm not ashamed,,I miss Palladia & Spike, my GrandKids miss SpongeBob..

  5. Carl Spock

    Carl Spock Superfly

    Sep 3, 2004

    Kids love Nickelodeon. A five year old will take minutes telling you a story she saw on Dora. She's not ashamed.

    Young people love MTV. Jersey Shore received the ratings it got because people were discussing at work or school the latest escapades of Snooki, Pauly D and The Situation.

    Thirty and forty-somethings who still rock love Palladia. I have a doctor friend who plays bass in a very popular local rock band and every time I go over to his house and he turns on the TV, it was last on Palladia.

    People of many ages love Comedy Central. If you like politics and have a sense of humor, The Daily Show and/or The Colbert Report are must-sees. If Jon Stewart takes down a big-wig with a cutting remark, it is replayed the next day on CNN, MSNBC and Fox News. What else do these three networks agree upon? And they aren't replaying The Daily Show clip because the reporters and producers like the show. They are replaying it because it's news. The comedy skit can become more memorable than the original remark.

    As far as I can see, you are the only closet watcher of Viacom network shows, mitchflorida.
  6. harsh

    harsh Beware the Attack Basset

    Jun 14, 2003
    Salem, OR
    Quite a few in the pre-teen age group from what I've seen.

    I spoke with a co-worker yesterday and her words were something like "half our channels are gone".
  7. harsh

    harsh Beware the Attack Basset

    Jun 14, 2003
    Salem, OR
    There's a financial conference call coming up in a short amount of time. The question will arise if the dispute is resolved and what manner of sticking points remain will likely surface if it isn't..
  8. ChicagoBlue

    ChicagoBlue Godfather

    Apr 29, 2011
    If I had a penny for how many times I have heard that about DBS. From the start it was that DBS could never make inroads. Then about 10 years ago it was the argument they couldnt' sustain without local channels. Then it became something else.

    You do realize that for many citizens in this country all they have is DBS, right? For many others, their options are an incredibly poor cable option or DBS.

    Your notion that pay tv is getting too expensive I find disingenious as well. Too expensive compared to what? Say you are paying $100 a month for tv. That's about $3 a day to entertain your family, get up to speed on the news and what all, etc, etc. $3 a day for a service that continues to entertain with 100's of channels all day long. $3 a day won't get a you a Starbucks that pleases you for 15 minutes.

    What I find so funny in all these rants here by people saying these guys are greedy for having a 10% profit (oh the humanity) is that if you look at the profits isolated on the broadband side by telcos and cable companies, they are 60% and higher. That's where your anger should be. That $50 a month you are paying for internet service doesn't cost them very much at all.
  9. JoeTheDragon

    JoeTheDragon Hall Of Fame

    Jul 21, 2008
    it is also sweeps week.
  10. lparsons21

    lparsons21 Hall Of Fame DBSTalk Club

    Mar 4, 2006
    Herrin, IL
    For me, that would be August 2009, which was when I bought my current car. The dealer gave me the keys and I drove it about a week before we came to terms that we both liked.
  11. ChicagoBlue

    ChicagoBlue Godfather

    Apr 29, 2011
    Coming from you that is rather precious when you read your earlier posts that DTV should just give in and keep the channels up. Trying to have it both ways again, I see.

    If DTV were to do that, those people with stagnant or falling incomes would have an even tougher time, or are you unable to connect those dots?

    Look, the way these contracts are written, DTV's costs are going up every year whether we have a depression, recession or boom because each year the contracts guarantee built in increases to the amount they have to pay the programmers. That is built in and regardless of what is going on in the world, that is the world a tv distributor lives in.
  12. Mariah2014

    Mariah2014 Breaking the mold

    Apr 21, 2006
    Phoenix Metro
    The -1 channels for these channels is now gone and any mention on the other pages about these channels being in a dispute is gone as well. Yet, the mix channels act like they belong on those numbers now.
  13. ChicagoBlue

    ChicagoBlue Godfather

    Apr 29, 2011

    Is DTV giving you more in those 7 years? HD, 3D, more channels, better technology (MRV, connectivity, etc), more local channel markets, interactivity, etc, etc? I would argue DTV gave you a lot more in those 7 years than Viacom did for that 30%.

    Plus, DTV has to deal with all these providers wanting massive increases, not just Viacom.

    Let's compare apples to apples, shall we?
  14. ChicagoBlue

    ChicagoBlue Godfather

    Apr 29, 2011
    In addition, Disney rating are up about the same amount Viacom's are down. Viacom is helping to push their own viewers of kids programming to a competitor. Viacom = not very smart right now.
  15. ChicagoBlue

    ChicagoBlue Godfather

    Apr 29, 2011
    All this chatter here about DTV earning a 10% profit, where is this coming from? When did this country change where it is now bad for an AMERICAN company with AMERICAN operations employing thousands of AMERICANS making only a 10% profit is now termed as GREEDY, SELFISH and somehow evil? I see this a lot amongst people nowadays and it is really sad to see. Those evil companies making profits are often paying for someone's pension, paying taxes, employing people that pay A LOT OF TAXES, etc, etc.

    For those of you upset about a 10% profit, you guys must go bonkers over Microsoft, AT&T, Apple, IBM, P&G, etc. They make DTV's profits look like they are hosting a lemonade stand on the corner.
  16. zimm7778

    zimm7778 Hall Of Fame

    Nov 11, 2007
    Since more and more became jealous of anyone making $1 more than them. See: oil companies who make like 6.2 % profit and rank 114th on industry profits. But, who gets vilified politically?
  17. abooch

    abooch Legend

    Oct 25, 2008
    Kids are going to find shows on Disney and now Disney Jr., that they may have never knew about or have never given a chance before. So, a decent percentage of kids may stay on Disney now instead of Nick if/when it comes back and Nick will lose those "customers."
  18. renbutler

    renbutler Godfather

    Oct 17, 2008
    DirecTV has always been a corporation since its founding, and it was #1 in customer service for a long time. That means that any current decline in customer service (perceived or real) has NOTHING to do with the fact that they are a corporation. DISH is a corporation, and apparently they are doing well in that regard.

    Some corporations do well by their customers, and others do not. The blanket damning of "rich corporations" is such a ridiculous trend.
  19. rlj1010

    rlj1010 Cool Member

    Mar 22, 2012
    The addition of Disney Junior sounds like a good thing, but really it's not. They must air Mickey Mouse Clubhouse about 12 times a day. Nick Jr. programming is way better.
  20. tulanejosh

    tulanejosh Godfather

    May 23, 2008
    believe that's his point.

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