Yes, it's gone forever, so long as you connect the definition of "forever" with the definition of "soon." Or until they reach an agreement.
With only 200 hours of new programming coming out of Smith this year, I'm not sure I want them to reach an agreement. Certainly not for any increase in cost. Might be better to stand firm on this one, and say after you've added X hours new programming, and commit to a minimum of Y hours of new programming each year, come talk to us.