Tuesday, November 1, 2011

Directv Caves In To Fox

In the latest feud between a content provider & the owner, Directv has come to an agreement with News Corp over all Fox owned stations which would have been removed from the satellite company today.

This has been going on for the last couple of years, with the networks dramatically increasing rates to the cable & satellite companies. Cablevision lost ABC & came to an agreement 2 hours after the Oscars started. Time Warner has had issues as has Dish Network. Directv lost Versus for an entire year.

Directv claimed News Corp was attempting to raise rates 40%. News Corp denies this. News Corp needed to fix this because Directv is the 2nd largest TV provider (19.4 M) behind Comcast.

The reality is that this is being fed by the networks increasing their fees. News Corp & Disney are veterans in this type of price gouging. Of course this is what happens when a small number of companies own the majority of cable stations. For instance, the loss of Fox channels on Directv would have included National Geographic, Speed & Fuel, besides FX & regional sports networks (the channels that carry local college & pro teams). A loss of Disney channels would include all ESPN channels. That's why it's a big deal.

Also remember Directv competitor Comcast now owns NBC & had to go through hoops with the government, basically agreeing not to try to keep NBC off Directv, Dish & Time Warner. Or show favoritism towards their own channels. Thir should be an investigation of this practice which is becoming very prevalent.

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