The skyrocketing cost of programming is a real issue and it effects every company that provides TV entertainment today. See what has happened nationally and what other companies are doing to fight back.
Anchorage-based telecommunications company GCI said Monday that it will drop AMC Networks and Univision in 2016 because of price hikes from both of those networks. GCI, the largest cable provider in Alaska, said in a press release that AMC Networks proposed “an almost 200 percent cost increase for all the network’s channels as a condition of carrying AMC.”
AMC Networks Inc. is demanding that . . . small cable providers, pay on behalf of all its subscribers—whether or not they actually receive AMC and its sister channels in their cable packages. AMC is still demanding that all its networks reach a high proportion of subscribers so that it doesn’t lose out on viewership and ad revenue.
The era of the participation trophy is coming to a close, at least in the TV industry, where consumers appear tired of paying for a bundle of a few hundred channels while watching only about 17 of them.
“We will not be bullied by big networks forcing unreasonable demands on our customers.” Eagle maintains the fact that they continue to work to keep costs low to the end consumer and don’t believe a network with one popular show should hijack a consumer’s budget for that one show.
Dish said the companies had reached an agreement on rates and all other terms for the carriage of the Sinclair local stations, but that Sinclair demanded the satcaster pull its signals anyway.
Cablevision is alleging that Viacom was “illegally forcing Cablevision to carry and pay for 14 lesser-watched ancillary networks its customers do not want, such as Palladia, MTV Hits and VH1 Classic, in order to carry must-have networks such as Nickelodeon, MTV and Comedy Central.”
The fight is really a simple one, but the stakes are high. Just follow the money. Broadcasters get billions from pay TV distributors to distribute their signals.
NBC viewers across Southern Colorado were left in the dark after a contract between DirecTV and Cordillera Communications came to an unresolved end on January 1.
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Reprinted from www.pcmag.com with permission. © 2017 Ziff Davis, LLC. All Rights Reserved.
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