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A + E Networks warns viewers against a possible network outage of A & E Network, Lifetime, History and other channels on DirecTV's platforms, as parties move to negotiations on the renewal of the distribution.
DirecTV and A + E Networks are facing a deadline set at midnight ET Tuesday to conclude a new deal that will keep A + E Networks channels on DirecTV, DirecTV Now and U-verse. It was expected that A + E would begin running a Saturday night analysis on some of its channel programs to inform viewers of the risk of channel closure.
Negotiations are underway but A + E Networks officials are clearly concerned. A + E Networks Group General Manager, Paul Buccieri, alerted company staff about the situation in a memo sent Saturday afternoon.
"AT & T has not demonstrated its willingness to negotiate in a reasonable manner," wrote Buccieri. "The agreement we seek is based on the same fair market conditions that allowed us to enter into agreements with many other suppliers. AT & T simply has not yet demonstrated its recognition of the value of our programming and the high regard we have for our viewers – including AT & T's own customers. "
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DirecTV's parent company, AT & T, has been brutal in its discussions with Wall Street on its intention to reduce programming costs on the upside, with DirecTV service experiencing significant subscriber losses as the ecosystem Pay TV is evolving. Earlier this week, AT & T announced a loss of 544,000 subscribers to DirecTV in the first quarter, bringing the total number of AT & T MVPD subscribers to 22.4 million.
AT & T is under pressure to improve the financial position of DirecTV, which is holding $ 170 billion of debt from its 2015 DirecTV and Time Warner acquisitions in 2018.
Buccieri spoke of the spectrum of discrimination operated by AT & T against an external programming service after an accumulation of acquisitions. DirecTV concluded last month with Viacom tense negotiations on the renewal of the car, which also implied public fears on both sides.
But DIrecTV is not the only one among distributors to deal with contracts. Public disputes between MVPD and programmers are on the rise at a time of rapid transformation of the pay-TV market as new low-cost entrants such as Hulu and YouTube install. Last month, Dish, its rival DirecTV, entered into a distribution agreement with Univision after a nine-month power outage.
"After recently acquiring WarnerMedia, AT & T seems determined to use its new position to gain an unfair advantage over its own channels," wrote Buccieri. "Many, including the US Department of Justice, feared that AT & T had the ability and motivation to discriminate programmers such as A + E Networks and others like us. It seems that this concern has become a reality.
A + E Networks is expected to begin broadcasting commercials to warn viewers of the contract conflict and message analysis on its most important channels. The A + E Networks channel portfolio also includes FYI, Lifetime Movie Network and Viceland.
(Photo: "Live PD" of the A & E network)
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