Viacom Negotiation Update

Update: 4/2/2014

NATIONAL CABLE TELEVISION COOPERATIVE AND VIACOM
REACH DEAL TO RENEW CARRIAGE AGREEMENT
Lenexa, KS and New York, NY – April 1, 2014 – The National Cable Television Cooperative (NCTC) and Viacom reached an agreement to renew carriage of Viacom’s media networks by NCTC’s more than 800 member companies. Terms of the agreement were not disclosed.
Judy Meyka, NCTC Executive Vice President of Programming, said: “Viacom is and remains one of NCTC’s largest content providers and we are pleased to have reached an agreement that will provide opportunities for our members to distribute their content over multiple platforms.”
“We’re grateful to have reached an agreement with NCTC that will allow millions of viewers nationwide to continue to enjoy our programming,” said Denise Denson, Executive Vice President, Content Distribution and Marketing, Viacom. “We commend NCTC for collaborating with Viacom to reach a fair deal that puts viewers first.”
About the National Cable Television Cooperative
The National Cable Television Cooperative, Inc. (NCTC) is a Kansas not‐for‐profit corporation that operates as a programming and hardware purchasing organization for its member companies who own and operate cable systems throughout the U.S. and its territories. NCTC seeks to maximize current and future opportunities to ensure the profitability, competitive stature and long term sustainability of its member companies.

Original Post 3/27/2014:

Multinational entertainment company Viacom, which is the parent owner of networks:  BET, Comedy Central, Spike, TV Land, CMT, MTV, VH1, and Nickelodeon, is threatening to shut down their network feeds to most rural cable companies at the end of March 2014, unless their demands for huge prices increases are met by the rural cable industry.

Direct Communications obtains all cable TV content through a national rural co-op, The National Cable Television Cooperative — which represents more than 1000 small rural cable operators, and negotiates all our programming deals. NCTC is trying to negotiate with Viacom, but they have informed us that they are not hopeful that an agreement will be reached due to Viacom being unwilling to budge on pricing demands.

Programming fees account for the bulk of our customers’ monthly cable TV bill.  Our goal is to protect our customers from significant programming fee increases. Viacom is demanding an increase that is 40 times the rate of inflation over last year’s fees for the same channels you get today – even if you don’t watch them.

We, as a small company that serves rural customers, feel that Viacom may be out of touch with demand for their programs in rural America, since surveys of our customers in rural Idaho have consistently ranked programs like MTV, VH1, BET, and Comedy Central (which are mostly targeted to urban youth) among the least-watched of any cable networks on the Directcom channel line-up.

Our existing agreement with Viacom expires on March 31, 2014. Although NCTC is working to negotiate a fair price for these networks after March 31, Viacom may turn off their networks or require us to remove all their channels until a new agreement is secured. For more information, please call us at 208 548 2345 or check back regularly on our facebook site, facebook.com/Directcom or  blog.directcom.com

 

Here are links to some of the national news stories about NCTC’s negotiations:

Multichannel News, March 25: Small Ops Gird for Battle

Los Angeles Times, March 26: Viacom in Fight with Small Ops

CBS MoneyWatch, March 26: Cable Customer could lose Viacom

About Brigham Griffin
Brigham Griffin, Marketing Director for Direct Communications, resides in rural Idaho, and has been with the company since 2005. Brigham has an MBA from the University of Utah, and a BA in Communications from Brigham Young University. He also serves as an adjunct professor of marketing at Idaho State University.

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