CMFINC
05-21-2010, 06:47 PM
DN to Drop Weather Channel
By SHIRA OVIDE----MEDIA & MARKETING
MAY 20, 2010, 7:52 P.M. ET
DN is dropping the Weather Channel for more than 14 million of its satellite-TV customers, in another sign of the growing friction between TV programmers and distributors.
Instead, DN said it is airing a new weather-focused channel that will replace Weather Channel.
DN said Weather Channel—owned by NBC Universal and private-equity firms Bain Capital LLC and Blackstone Group LP—is asking for exorbitant monthly fees to pipe the channel to households that subscribe to DN TV service.
"D*sh has chosen to be the first distributor to drop The Weather Channel rather than pay the standard industry rates others in the industry have already agreed to pay," the Weather Channel said in a statement. The Weather Channel encouraged DN customers to switch to other TV providers.
A rising number of TV-fee impasses are causing channels like the Food Network, Walt Disney Co.'s ABC and News Corp.'s Fox to go dark or threaten to be dropped from TV lineups around the country, as consumers get caught in the middle of financial disputes between TV-channel owners and TV distributors.
Cable- and satellite-TV companies pay an average of 12 cents a month for each television household that has access to the Weather Channel, according to research firm SNL Kagan. Neither the Weather Channel nor DN would say how much of a fee increase the Weather Channel is seeking.
While the two sides have tried and failed to reach a deal for several months, it was still possible they could reach an agreement before their existing TV contract expired at midnight EDT Thursday.
In addition to its financial complaints, DN also said the Weather Channel is relying too much on "weather-tainment" such as movies, and turning away from local-weather reporting, according to Dave Shull, senior vice president for programming.
"Honestly I was hopeful that we wouldn't have to go down this path," Mr. Shull said. "We just weren't able to come to terms."
More than 100 million households have access to the Weather Channel. DN said its new weather channel, called The Weather Cast, will have more local-weather updates.
By SHIRA OVIDE----MEDIA & MARKETING
MAY 20, 2010, 7:52 P.M. ET
DN is dropping the Weather Channel for more than 14 million of its satellite-TV customers, in another sign of the growing friction between TV programmers and distributors.
Instead, DN said it is airing a new weather-focused channel that will replace Weather Channel.
DN said Weather Channel—owned by NBC Universal and private-equity firms Bain Capital LLC and Blackstone Group LP—is asking for exorbitant monthly fees to pipe the channel to households that subscribe to DN TV service.
"D*sh has chosen to be the first distributor to drop The Weather Channel rather than pay the standard industry rates others in the industry have already agreed to pay," the Weather Channel said in a statement. The Weather Channel encouraged DN customers to switch to other TV providers.
A rising number of TV-fee impasses are causing channels like the Food Network, Walt Disney Co.'s ABC and News Corp.'s Fox to go dark or threaten to be dropped from TV lineups around the country, as consumers get caught in the middle of financial disputes between TV-channel owners and TV distributors.
Cable- and satellite-TV companies pay an average of 12 cents a month for each television household that has access to the Weather Channel, according to research firm SNL Kagan. Neither the Weather Channel nor DN would say how much of a fee increase the Weather Channel is seeking.
While the two sides have tried and failed to reach a deal for several months, it was still possible they could reach an agreement before their existing TV contract expired at midnight EDT Thursday.
In addition to its financial complaints, DN also said the Weather Channel is relying too much on "weather-tainment" such as movies, and turning away from local-weather reporting, according to Dave Shull, senior vice president for programming.
"Honestly I was hopeful that we wouldn't have to go down this path," Mr. Shull said. "We just weren't able to come to terms."
More than 100 million households have access to the Weather Channel. DN said its new weather channel, called The Weather Cast, will have more local-weather updates.