Versus Removed Sept 1 from DirecTV

[durl]

We hardly ever know the FULL story behind these contract negotiations so automatically blaming Directv might be a bit presumptuous. Do we know the details of what Versus is asking? Remember: Versus is owned by Comcast, a huge competitor to Directv.

- Directv wants to provide channels people want because that gives them more subscribers. They also want to keep costs down and not pay huge carriage fees if the demand is not high enough to necessitate them.

- Networks, such as Versus, want to be made available to the most customers possible and obtain the highest possible carriage fees by companies such as Directv.



Since Versus is not in the Sports Pack, higher carriage fees demanded by them could potentially result in higher programming costs for everyone with Choice Xtra or Premier packages, whether they enjoy sports or not.

[damjr]

We hardly ever know the FULL story behind these contract negotiations so automatically blaming Directv might be a bit presumptuous. Do we know the details of what Versus is asking? Remember: Versus is owned by Comcast, a huge competitor to Directv.

- Directv wants to provide channels people want because that gives them more subscribers. They also want to keep costs down and not pay huge carriage fees if the demand is not high enough to necessitate them.

- Networks, such as Versus, want to be made available to the most customers possible and obtain the highest possible carriage fees by companies such as Directv.

Since Versus is not in the Sports Pack, higher carriage fees demanded by them could potentially result in higher programming costs for everyone with Choice Xtra or Premier packages, whether they enjoy sports or not.

Very well put !!

This is exactly what's going on out there. We will see more and more of this going on in the future.

If DTV or Dish keep bending to the channel demands we will all see much higher monthly costs.

Honestly I'm glad to see DTV finally stand up to these guys. They have lying down much too easily on other negotiations which is why you see higher monthly costs today than what you were paying 3 years ago.

I remember when satellite tv was anywhere from 25-40% less than cable, but today DTV is right up there with most cable companies now. This in part is due to ridiculously higher costs going out to the programmers. Who do you think has to absorb these costs? Who do you think is paying the billion dollar price tag for the NFL Sunday ticket?

We as consumers need to take a stand as well and start backing our providers by writing the advertisers that advertise on the channels demanding higher fees and letting them know we will not support their products if they advertise on these channels. This is how you hit the channels in the pocket book. This is what will wake them up.

If we all sit here and blame DTV or Dish for not caving in to the channels demands
then the channels win and our bills will keep going up. Time to wake up people !!!

[darrencp22]

Since DirecTV does not often get in these disputes, i'm going to side with them and give them the benefit of the doubt.... This is not a luxury DIsh ahs because they are in constant programming disputes.

[MSHAW2715]

Here is the multichannel news article on it.

Dispute Alert / Sirius Outlook - The Satellite Dish | Blog on Multichannel News

Dispute Alert / Sirius Outlook

August 20, 2009
Attention satellite viewers… there is another programming dispute and surprisingly this time it does not involve Dish Network. At odd are satellite giant DirecTV and sports network Versus.
Its rare to see DirecTV in a public programming dispute, but according to DirecTV’s website at
DIRECTV: Versus on DIRECTV

the sports network has been running a message on viewers screens telling them that they may no longer receive the Versus channel after August 31st.
DirecTV states that they are in contract negotiations with Versus and that their contract is slated to expire on August 31st so viewers will be able to continue to enjoy programming from Versus until then.
DirecTV goes on to add that is they do not reach an agreement prior to the expiration of the contract DirecTV will remove Versus from the lineup.
In what seems like a page out of the Dish Network programming dispute playbook DirecTV also mentions on it’s web page that “DIRECTV wants to keep your monthly fees low, so it’s doing everything it can to avoid paying exorbitant programming fees.” DirecTV also goes on to add “… this is about DIRECTV getting treated fairly and not wanting to pass on high programming fees to our customers.”
I am sure seeing this has some folks at Dish Network smiling. One of Dish Networks major public disputes was over the same channel (which was then called Outdoor Life Network.) Dish dropped the channel from their lineup over a dispute in October of 2005, the channel was not returned to Dish Network until April of 2006.
Versus is known for its hockey and professional bull riding coverage, but also offers college football and Indycar racing.
We will be keeping a close eye on this one.

[MSHAW2715]

DirecTV Could Drop Versus - 2009-08-20 16:06:34 EDT | Multichannel News

DirecTV Could Drop Versus

Carriage Expires Sept.1 Unless New Deal Emerges

by Mike Farrell -- Multichannel News, 8/20/2009 4:06:34 PM EDT





DirecTV has notified its customers that it will drop sports channel Versus on Sept. 1 unless the two can work out a carriage agreement.
Versus, formerly Outdoor Life Network, was rebranded in 2006 and is the home of the National Hockey League as well as collegiate sports from the Pac-10, Big 12, Mountain West and Ivy League conferences, the Tour de France bicycle race, Davis Cup Tennis, the Professional Bull Riders (PBR), World Extreme Cage fighting (WEC), the Indy Racing League and Professional Boxing.
The network is available in about 75 million homes and is wholly-owned by Comcast. It is unclear how many subscribers the network has on DirecTV, which has about 24.2 million subscribers overall.
In a statement, DirecTV said that the dispute centers on carriage fees. According to SNL Kagan, Versus was getting about 18 cents per subscriber per month in carriage fees from cable operators in 2009.
"In our contract discussions, Comcast has demanded a deal for Versus that is not comparable to other providers and is pushing for a significant rate hike that does not reflect current market terms or the value of its programming," DirecTV said in a prepared statement. "We will continue to try and negotiate a fair deal, but we intend to hold the line on our programming costs and protect our customers against these unfair demands that are both discriminatory and wholly unrealistic given current market rates. If we do not reach an agreement, the network will come down on Sept. 1 following the expiration of our contract with Versus."
The dispute comes weeks before the college football season is expected to kick-off - Versus is scheduled to air its first game (Texas vs. Wyoming) on Sept. 12. Versus also airs its first NHL contest on Oct. 1.
In a statement, Versus said that it is negotiating in good faith with DirecTV and hopes a deal can be reached soon.
"Since our last deal with DirecTV, Versus has added many marquee properties and has become the fastest growing sports cable network in the country," the network said in a 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."
Since its re-branding three years ago, Versus has indeed increased its distribution: it is available in 75 million homes compared to 62 million in 2006 and has beefed up its programming lineup, expanding its college football coverage from 9 games in 2006 to more than 20 games this season, as well as adding other programming.

[Tampa8]

Since DirecTV does not often get in these disputes, i'm going to side with them and give them the benefit of the doubt.... This is not a luxury DIsh ahs because they are in constant programming disputes.

Kind of a silly position to take, isn't it? Why not think about maybe Charlie was right all along and Direct is now going to do what Dish has been doing? Good for both companies. Keep it up.

[ChrisK114]

I agree with Tampa. They should stand up for themselves when they feel as if they have been treated unfairly. Regardless of what we may think, if D* or E* feel like they are being taken advantage of, them, speak up.

[damjr]

I agree with Tampa. They should stand up for themselves when they feel as if they have been treated unfairly. Regardless of what we may think, if D* or E* feel like they are being taken advantage of, them, speak up.

Agreed. As I said earlier, we will probably see more of these disputes in the future.

I think one of the reasons, besides greed, that the channels are asking for more money may have something to do with less advertising revenue. I think they're trying to make up the difference by extorting providers. Just my $.02

[Jhon69]

Very well put !!

This is exactly what's going on out there. We will see more and more of this going on in the future.

If DTV or Dish keep bending to the channel demands we will all see much higher monthly costs.

Honestly I'm glad to see DTV finally stand up to these guys. They have lying down much too easily on other negotiations which is why you see higher monthly costs today than what you were paying 3 years ago.

I remember when satellite tv was anywhere from 25-40% less than cable, but today DTV is right up there with most cable companies now. This in part is due to ridiculously higher costs going out to the programmers. Who do you think has to absorb these costs? Who do you think is paying the billion dollar price tag for the NFL Sunday ticket?

We as consumers need to take a stand as well and start backing our providers by writing the advertisers that advertise on the channels demanding higher fees and letting them know we will not support their products if they advertise on these channels. This is how you hit the channels in the pocket book. This is what will wake them up.

If we all sit here and blame DTV or Dish for not caving in to the channels demands
then the channels win and our bills will keep going up. Time to wake up people !!!

Annual channel price increases are negotiated in the contract at the time of negotiation so to believe your bill will not increase every year would be wishful thinking but not practical.

[Frank Booth]

I will say this, as much as I am a NHL fan, and an IRL follower, Versus way overpaid for these properties. ESPN offered a revenue-sharing deal to the NHL, like NBC, but Comcast came in with a big offer. However, the ratings haven't justified it, and it has been a disaster for the NHL, they get killed by writers and fans on a daily basis. If it wasn't for NBC and the RSN's, the league would be dead. Zero exposure.

As for the IRL, ABC/ESPN was only interested in the Indy 500 and a handful of races to air on ABC. They offered the IRL a time-buy for ESPN/ESPN2 for the balance of the schedule. This is what CART/Champ Car did for their races. But Versus offered money and a pre-race show, and that's where they went. But team sponsors and race promoters are furious because the exposure on Versus is nill. Any momentum from the IRL/Champ Car merger is gone. Period. Versus has been a disaster for the NHL and IRL. And the NHL and IRL have been mistakes for Versus. Now Comcast wants DirecTV to pay it seems.