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7/11/12 10:30 AM
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Underground Blog
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MixedMartialArts.com
 

DirecTV® and Viacom have been in negotiations and those negotiations came to a halt. DirecTV® claims they have made their final offer to Viacom and are removing Viacom’s 22 channels (MTV, Spike TV, VH1, Comedy Central and Nickelodeon to name a few).

At the heart of negotiations is Viacom’s request for a 30% rate increase that would amount to over $1 billion dollars. Because of Viacom’s size, they can bundle all of their channels into the negotiations. DirecTV® said, “You should be able to decide which Viacom channels you want and which you don’t.”

Viacom claims that DirecTV® subscribers have made Viacom the most watched programmer and accounted for 20% of all of its viewing. They also claim that they are only paid for 5% of the viewing and the increase is justified.

Wall Street has been talking about Viacom’s value being in decline. Cable and Satellite providers are under attack from streaming videos and Netflix. The ratings decline for networks like MTV and Nickelodeon it is creating a perfect storm for distributors to drop Viacom from its line up. A few years ago this would be unthinkable just based on Nickelodeon. UBS analyst John Janedis recently downgraded his rating on Viacom’s due to concerns related to ongoing ratings weakness. He wrote in his report: “We continue to think the concerns related to Netflix/Amazon viewing are overblown in the near-term, but from a content perspective, our sense is that returning series at MTV are under-performing, which will translate to further make-goods and a drag on ad growth in fiscal year 2013."

Why is this important to MMA fans? The loss of DirecTV® hurts the expansion plans of Bellator, who is in partnership with Viacom. Partnership really mis-states the relationship. Viacom owns a large chunk of Bellator. Bellator can’t jump ship the way the UFC left Spike, they’re stuck until sold off. Bellator goes where Viacom goes.

Many thought the Viacom deal would allow Bellator to become the second largest American Mixed Martial Arts promotion. Suddenly Viacom itself is in danger of The Judgement by the market. With One FC’s ten year deal with ESPN STAR for Asian distribution and the DirecTV® Viacom deal hanging by a thread we may see One FC take the number two spot in the sport. Thinking that an Asian distribution deal doesn’t threaten Bellator’s North American position would be a mistake. The missing facts are: Victor Cui, CEO and owner of One FC, was at one time a senior director for ESPN STAR, and ESPN STAR is a 50-50 joint project between ESPN and Rupert Murdoch’s News Corp – the single largest media presence in North America, which includes, yes, FOX.

Update - As of this morning Nickelodeon, MTV, VH1, Comedy Central and other cable channels owned by Viacom were taken off of DirecTV’s lineup early Wednesday morning, beginning a channel blackout that has angered viewers across the United States.  In total 20 million homes lost access to Viacom's channels.

Read entire article...


7/11/12 10:43 AM
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GeoDim
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Strong move by DirectTV. 
7/11/12 10:44 AM
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Humphrey
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ROFL at this incredibly stupid paragraph.

Many thought the Viacom deal would allow Bellator to become the second largest American Mixed Martial Arts promotion. Suddenly Viacom itself is in danger of The Judgement by the market. With One FC's ten year deal with ESPN STAR for Asian distribution and the DirecTV® Viacom deal hanging by a thread we may see One FC take the number two spot in the sport. Thinking that an Asian distribution deal doesn't threaten Bellator's North American position would be a mistake. The missing facts are: Victor Cui, CEO and owner of One FC, was at one time a senior director for ESPN STAR, and ESPN STAR is a 50-50 joint project between ESPN and Rupert Murdoch's News Corp – the single largest media presence in North America, which includes, yes, FOX.
7/11/12 10:44 AM
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FUTA WON (c)
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I have DirecTV and this doesn't bother me one bit. Viacom will come to the realization that they are going to have to bring their expectations down some. It will be back on soon I'm sure. Phone Post
7/11/12 10:44 AM
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Bailx
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they would never drop viacom it's just negotiation tactics... and really a waste of our time worrying about it.
7/11/12 10:44 AM
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GeoDim
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 Haha, look what happens when DirecTV customers try to watch Nickelodeon.


7/11/12 10:46 AM
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steve sandstrom
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Bailx - they would never drop viacom it's just negotiation tactics... and really a waste of our time worrying about it.
It's dropped bro. Phone Post
7/11/12 10:47 AM
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Humphrey
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Edited: 07/11/12 10:46 AM
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this is typical contract negotiations with this stuff now, yet suddenly it's going to sink one org and make the other the best eva
7/11/12 10:48 AM
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BuddyRevell
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 I was pissed for about two seconds then realized my old ass doesn't watch any of those channels.
7/11/12 10:48 AM
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Humphrey
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steve sandstrom - 
Bailx - they would never drop viacom it's just negotiation tactics... and really a waste of our time worrying about it.
It's dropped bro. Phone Post

no, it's not 'dropped' it's TEMPORARILY removed until an agreement is reached.

you're just as bad as UG BLog
7/11/12 10:51 AM
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caposa
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Edited: 07/11/12 10:52 AM
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DirecTV just got into this shit with FOX last year. Remember they were threatening to drop all FOX channels and the deal went through in the last minute?

Well now they actually dropped the channels. I'm sure it will be resolved within a few days but come on, customers shouldn't have to deal with this bullshit. Greedy fucks.

Unless it's Bellator on MTV2, I don't even watch MTV, BET, Spike, etc. It still pisses me off.
  
7/11/12 10:53 AM
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Sofa King Cool
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GeoDim -  Haha, look what happens when DirecTV customers try to watch Nickelodeon.


Awesome. Fuck Viacom for trying to raise its prices that much with their shit programming. Phone Post
7/11/12 10:55 AM
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UGCTT_LnPninja
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Bailx - they would never drop viacom it's just negotiation tactics... and really a waste of our time worrying about it.

 All the channels are blacked out as of last night at midnight for me...

Not saying they wont work it out, but as of right now it is actually in place. (black out)

Kinda sucks as we watch Spike and Comedy Central evey fucking day in my place.
7/11/12 10:57 AM
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UGCTT_LnPninja
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caposa - DirecTV just got into this shit with FOX last year. Remember they were threatening to drop all FOX channels and the deal went through in the last minute?

Well now they actually dropped the channels. I'm sure it will be resolved within a few days but come on, customers shouldn't have to deal with this bullshit. Greedy fucks.

Unless it's Bellator on MTV2, I don't even watch MTV, BET, Spike, etc. It still pisses me off.
  

 It seems you are calling DirecTV the "greedy fucks". You do realize taht they are protecting US the consumer by not allowing Viacom to raise the costs of those channels by 30% despite ratings/viewership going down, right?

Viacom are the "greedy fucks" in this scenario.
7/11/12 10:57 AM
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DWTF
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Good
7/11/12 10:58 AM
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BobD
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Edited: 07/11/12 11:02 AM
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No, it's 'dropped' a new deal has to be done almost from scratch.  That's the point of drop dead dates in negotiations.  They reset and go back to square one and start over.  Most analysts feel some agreement will be reached eventually.. and that Viacom will get into high single digits on their share (they're at 5% now, they asked for 30%).  I pulled the following from Deadline.com, they've done a decent job of tracking this as it developed.

Viewers who tune in to a Viacom network will see a mix of replacement channels, DirecTV says: For example, in the Nickelodeon slot customers will find other children’s programming choices including The Disney Channel, ABC Family, Cartoon Network, PBS Sprout, The Hub and Boomerang. In addition, customers can “see full-length Viacom episodes for free by going to www.directvpromise.com and clicking on the ‘Other Ways to Watch’ tab,” DirecTV says.

The big question now is: who can hold out the longest? Bernstein Research’s Craig Moffett says that “DirecTV would appear to have significant leverage this time around” because of the weak ratings at Nickelodeon and MTV. But the consensus is that both sides will want to settle this soon. Viacom says that its channels account for about 20% of all the viewing on DirecTV. Nomura Securities’ Michael Nathanson predicts that with no deal “this negotiation between Viacom and DirecTV will turn negative very quickly.” In the end, though, he expects Viacom to receive at least high single digit annual rate increases over the life of its deal. “We do not believe Viacom is worried about the short-term quarterly impact,” he says. Investors didn’t seem especially fearful on Tuesday: On a day when the benchmarck Standard & Poors 500 was down about 0.8%, Viacom dropped 1.6% and DirecTV was down 0.6%.


 
7/11/12 10:58 AM
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caposa
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UGCTT_LnPninja - 
caposa - DirecTV just got into this shit with FOX last year. Remember they were threatening to drop all FOX channels and the deal went through in the last minute?

Well now they actually dropped the channels. I'm sure it will be resolved within a few days but come on, customers shouldn't have to deal with this bullshit. Greedy fucks.

Unless it's Bellator on MTV2, I don't even watch MTV, BET, Spike, etc. It still pisses me off.
  

 It seems you are calling DirecTV the "greedy fucks". You do realize taht they are protecting US the consumer by not allowing Viacom to raise the costs of those channels by 30% despite ratings/viewership going down, right?

Viacom are the "greedy fucks" in this scenario.
I meant FOX and Viacom actually.
7/11/12 10:59 AM
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UGCTT_LnPninja
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 ^^^^ Oh, my apologies. I misunderstood you :)
7/11/12 11:01 AM
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cruedi
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I'll miss spike a little, but like people have said, every year providers and channels have these contract issues.

Usually they make a last minute agreement, but sometimes it takes a few days.

7/11/12 11:01 AM
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BobD
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Edited: 07/11/12 11:04 AM
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Humphrey - this is typical contract negotiations with this stuff now, yet suddenly it's going to sink one org and make the other the best eva
The blog didn't say anything like that at all...   It said losing at least half of it's reach will be a real problem for Bellator, and that One FC is well placed to take advantage of it.  Both of those things are obviously true.
  
7/11/12 11:03 AM
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Cyril Jeff
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there's nothing really typical about what is happening right now...
DTV called Viacom's hand, stations are pulled, things very rarely get this far.

*grabs bag of jiffy pop*
7/11/12 11:04 AM
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UGCTT_SidRival
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This could get interesting. But one of the sides will cave and they'll strike a deal I'm sure. Phone Post
7/11/12 11:41 AM
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Nexuscrawlers
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 NOBODY BETTER MESS WITH MY ABILITY TO WATCH BELLATOR!!!!!!!!
7/11/12 11:43 AM
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un3rgr0und
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Directv is getting into it with all their channels aren't they? they dropped AMC a few weeks ago and I think they finally reached a new agreement there, now its with Viacom

so much greed
7/11/12 11:48 AM
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Kirik
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Update - As of this morning Nickelodeon, MTV, VH1, Comedy Central and other cable channels owned by Viacom were taken off of DirecTV’s lineup early Wednesday morning, beginning a channel blackout that has angered viewers across the United States.  In total 20 million homes lost access to Viacom's channels.

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